Partial Victory For Transocean in BP/Gulf Case (RIG, BP)

Transocean Ltd. (NYSE: RIG) is running higher in the after-hours after the WSJ reported that a federal judge has now ruled that BP PLC (NYSE: BP) is going to be required to indemnify Transocean as the owner of the Deepwater Horizon drilling rig.  This indemnification is against “compensatory damages related to the 2010 Gulf of Mexico oil spill, but isn’t required to protect the firm from punitive damage or civil penalties under the Clean Water Act.”

Effectively, the judge agrees with Transocean that the drilling company will not be liable for third party claims over oil spilled under the water surface in the Gulf of Mexico. Transocean still appears to be liable for punitive damages and civil penalties brought by the government, if there are any.  In short, there may not be a total victory but the blame and financial damage appears to be stuck on the shoulders of BP rather than Transocean.

Transocean shares are up 6% at $49.31 in the after-hours session against a 52-week range of $38.21 to $85.98.  BP shares (ADRs) are indicated down about 0.6% in the after-hours session around $44.50.