Anadarko Points Finger At BP
It looks like the blame game is just getting started with Anadarko hurling some rather strong accusations at BP.
In a press statement released Friday June 18th, Anadarko Chairman and CEO Jim Hackett made extremely candid remarks about the spill in the Gulf including the tragedy was preventable and “the direct result of BP’s reckless decisions and actions."
Hackett goes on to say that “BP's behavior and actions likely represent gross negligence or willful misconduct.”
Granted Anadarko has part interest in the well that exploded and the statement may be a preemptive move to deflect liabilities – but there's no denying that it’s worded rather strongly.
”It seems to me Anadarko is getting ahead of (a potentially forthcoming) push to put money aside for the Gulf spill,” muses Joe Terranova.
We thought you might be interested in reading the entire press release so we posted it below:
Anadarko Issues Statement
Source: Business Wire
Date: June 18, 2010
HOUSTON--(BUSINESS WIRE)-- Following this week's hearings in Washington regarding the Deepwater Horizon tragedy, Anadarko Petroleum Corporation (NYSE: APC) issued the following statement:
"The events surrounding the Deepwater Horizon explosion represent a terrible loss for the families of those who lost their lives and an unprecedented environmental tragedy," Anadarko Chairman and CEO Jim Hackett said. "Sadly, it also continues to have tremendous impacts on the livelihoods of many Gulf Coast families and their communities. We, along with others in the industry, have continued to support the Unified Command in its response with technical expertise and specialized equipment.
"The mounting evidence clearly demonstrates that this tragedy was preventable and the direct result of BP's reckless decisions and actions. Frankly, we are shocked by the publicly available information that has been disclosed in recent investigations and during this week's testimony that, among other things, indicates BP operated unsafely and failed to monitor and react to several critical warning signs during the drilling of the Macondo well. BP's behavior and actions likely represent gross negligence or willful misconduct and thus affect the obligations of the parties under the operating agreement," continued Hackett.
Under the terms of the joint operating agreement (JOA) related to the Mississippi Canyon block 252 lease, BP, as operator, owed duties to its co-owners including Anadarko to perform the drilling of the well in a good and workmanlike manner and to comply with all applicable laws and regulations. The JOA also provides that BP is responsible to its co-owners for damages caused by its gross negligence or willful misconduct. Importantly, any actions Anadarko may take under the agreement to protect its rights relative to BP's performance as operator in the drilling of the well will in no way shift any financial burden to the American taxpayer. Hackett also said, "We recognize that ultimately we have obligations under Federal law related to the oil spill, but will look to BP to continue to pay all legitimate claims as they have repeatedly stated that they will do."
The operator of a well determines the detailed planning and execution of the well, and is responsible for the day-to-day activities of, and decisions executed by, personnel on the rig. Consistent with standard industry practice around the world, non-operating investors rely upon the operator to make the appropriate decisions on the rig.
"BP's failures in the drilling of this well are not a reflection of the many tremendously skilled and committed individuals in our industry who work hard every day to deliver needed resources to America. We look forward to continuing to work with the Administration and our industry to identify further enhancements to the industry's operating procedures and practices, and to helping get the Gulf's dedicated workers back to work soon," Hackett said.
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CNBC.com with wires