Transocean Reaches Settlement Agreements With PSC And BP
21 May 2015 - 7:00AM
ZUG, SWITZERLAND-May 20, 2015-Transocean Ltd.
(NYSE: RIG) (SIX: RIGN) today announced that it has reached two
separate settlement agreements, with the Plaintiffs' Steering
Committee (the "PSC") and with BP Exploration & Production Inc.
and BP America Production Co. ("BP"). These settlements together
resolve substantially all outstanding claims against Transocean
arising from the April 20, 2010, Macondo Well incident involving
the Deepwater Horizon in the Gulf of
Mexico.
Under the terms of the agreement with the PSC, which is subject to
approval by the U.S. District Court for the Eastern District of
Louisiana (the "Court"), Transocean will pay two classes of
plaintiffs, represented by the PSC, a total of approximately
$212 million. Transocean will also pay attorneys' fees to be
determined by the Court. The first class covered under the PSC
agreement comprises private plaintiffs and local governments that
potentially could assert punitive damages claims against Transocean
under maritime law. The second class comprises the private
plaintiffs who previously settled economic damages claims with BP
and were assigned certain claims BP had made against Transocean. A
court-appointed special master will allocate Transocean's payment
between the punitive damages class and the economic damages class.
Transocean intends to satisfy its payment obligations using cash on
hand.
Under the terms of the agreement with BP, which is not subject to
court approval, BP has agreed to indemnify Transocean for
compensatory damages, including natural resource
damages, while Transocean will indemnify BP for personal and
bodily injury claims of Transocean employees and claims relating to
any future cleanup or removal of diesel or other pollutants stored
on the Deepwater Horizon. BP and Transocean
will mutually release all claims each has against the other. BP
will also discontinue its attempts to recover as an "additional
insured" under Transocean's liability policies that will accelerate
the company's recovery of approximately $538 million in insurance
proceeds. Finally, BP will pay Transocean $125 million in
compensation for legal fees it incurred.
The Macondo Well incident resulted from a complex series of causes
and events. These included mistakes made by multiple parties,
including Transocean, from which the entire industry can learn and
continue to improve safety in the drilling industry. These
important agreements, which Transocean believes to be in the best
interest of its shareholders and employees, remove substantially
all of the remaining uncertainty associated with the
incident.
"These settlements provide substantial closure to five years of
litigation and we are confident that this agreement can be a
significant step forward in our efforts to renew our partnership
with BP," said Jeremy Thigpen, President and Chief Executive
Officer of Transocean. "Most importantly, while the litigation is
finally coming to an end, it is important that we, as an industry,
continue to remember the eleven men who lost their lives in this
tragedy, and keep them and their families in our thoughts and
prayers."
Forward-Looking Statements
The statements described in this press
release that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements contain words such as "possible," "intend,"
"will," "if," "expect" or other similar expressions.
Forward-looking statements are based on management's current
expectations and assumptions, and are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, actual results could differ
materially from those indicated in these forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, risks associated with
actions taken by various litigants and jurisdictions governing
Macondo litigation matters, approvals by the Court, potential
opt-outs, actions to be taken by BP and the PSC, and other factors,
including those and other risks discussed in the company's most
recent Annual Report on Form 10-K for the year ended December 31,
2014, and in the company's other filings with the SEC, which are
available free of charge on the SEC's website at www.sec.gov.
Should one or more of these risks or uncertainties materialize (or
the other consequences of such a development worsen), or should
underlying assumptions prove incorrect, actual results may vary
materially from those indicated or expressed or implied by such
forward-looking statements. All subsequent written and oral
forward-looking statements attributable to the company or to
persons acting on our behalf are expressly qualified in their
entirety by reference to these risks and uncertainties. You should
not place undue reliance on forward-looking statements. Each
forward-looking statement speaks only as of the date of the
particular statement, and we undertake no obligation to publicly
update or revise any forward-looking statements to reflect events
or circumstances that occur, or which we become aware of, after the
date hereof, except as otherwise may be required by law. All
non-GAAP financial measure reconciliations to the most comparative
GAAP measure are displayed in quantitative schedules on the
company's website at www.deepwater.com.
This press release, or referenced documents, do not constitute an
offer to sell, or a solicitation of an offer to buy, any
securities, and do not constitute an offering prospectus within the
meaning of article 652a or article 1156 of the Swiss Code of
Obligations or a listing prospectus within the meaning of the
listing rules of the SIX Swiss Exchange. Investors must rely on
their own evaluation of Transocean and its securities, including
the merits and risks involved. Nothing contained herein is, or
shall be relied on as, a promise or representation as to the future
performance of Transocean.
About Transocean
Transocean is a leading international
provider of offshore contract drilling services for oil and gas
wells. The company specializes in technically demanding sectors of
the global offshore drilling business with a particular focus on
deepwater and harsh environment drilling services, and believes
that it operates one of the most versatile offshore drilling fleets
in the world.
Transocean owns or has partial ownership interests in, and operates
a fleet of, 65 mobile offshore drilling units consisting of 41
high-specification floaters (ultra-deepwater, deepwater and
harsh-environment drilling rigs), 14 midwater floaters and 10
high-specification jackups. In addition, the company has seven
ultra-deepwater drillships and five high-specification jackups
under construction.
For more information about Transocean, please visit:
www.deepwater.com.
Analyst Contacts:
Thad
Vayda
+1 713-232-7551
Diane Vento
+1 713-232-8015
Media Contact:
Pam
Easton
+1 713-232-7647
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Transocean Ltd via Globenewswire
HUG#1923050
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