Oil Spill MDL Judge: BP Must Indemnify Rig Owner On Some Claims

NEW ORLEANS - The federal judge in Louisiana overseeing litigation stemming from the explosion of the Deepwater Horizon oil rig and ensuing oil spill in the Gulf of Mexico on Jan. 26 held that the terms of a drilling contract between BP PLC and Transocean, the owner of the Deepwater Horizon, require the oil company to indemnify Transocean for compensatory damages asserted by third parties related to pollution that did not originate on or above the surface of the water, even if the claim is a result of Transocean's strict liability, negligence or gross negligence (In re: Oil Spill by the Oil Rig "Deepwater Horizon" in the Gulf of Mexico, on April 20, 2010, MDL 2179, Case No. 10-md-2179, E.D. La.). Full story on lexis.com