BP Looks To Sink Transocean in Fed Hearings

Transocean (RIG-$51.62), the world’s largest offshore drilling contractor, warned in its earnings filing that British Petroleum (BP-$36.34) had reservations and would likely seek to avoid its contractual responsibilities, including protection from financial penalties and liabilities resulting from the Macondo well disaster in the Gulf of Mexico.

BP’s conviction that it doesn’t have to honor terms of the Deepwater Horizon drilling contract is motivated by the least noble of all great actions — greed:

Prior to the capping of the well on July 15, a federal task force estimated up to 173 million gallons escaped from the damaged well into Gulf waters, less captured or contained crude. Under the Clean Water Act, BP could be fined $4.5 billion, or as much as $17.6 billion (if found guilty of committing gross negligence).

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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.