Summary: Halliburton oilfield service provider has agreed to pay $1.1 billion to settle claims against them for involvement in 2010’s Gulf of Mexico Oil Spill.
Halliburton Co, the largest oilfield service provider in the U.S., and one of three companies under fire for the 2010 Oil Spill in the Gulf of Mexico, has agreed to a $1.1 billion settlement meant to answer a series of lawsuits for its role in the largest offshore oil spill in U.S. history.
The company claimed in a statement earlier that they set aside $1.3 billion to handle costs, which is less than Transocean’s costs, when they agreed to pay $1.4 billion last year for its role. BP, the major player in the spill, has so far paid $28 billion.
The $1.1 billion will be set in a trust until all appeals are resolved, the company said, and will be paid in three installments these next two years. If a certain number of claimants fail to participate, Halliburton can terminate the trust.
The company had previously blamed BP for the incident, claiming it was BP’s decision to use only six centralizers, the cement units that stabilize well bores during cementing, a service Halliburton provided for BP.
“BP has claims against us for contribution for their exposure under the Clean Water Act,” said Chief Financial Officer Mark McCollum, as Reuters reported. “We do not think that stands the legal test because we are not under maritime laws.”
As for the settlement, Stewart Glickman, an equity analyst at S&P Capital IQ, approved of it, saying, “We think this is a smart move by Halliburton. While state claims by Louisiana and Alabama remain, we think this trims legal overhand.”
Now that most of their liability seems to be resolved, Halliburton hopes to center its attention back on innovating oilfield technology and progress its company, whose shares have gained 33 percent this last year.