Home > Boards > US Listed > Oil/Gas/Natural Energy Production > Transocean Ltd. (RIG)
Followed By 179
Posts 43905
Boards Moderated 1
Alias Born 11/09/2004

Friday, September 10, 2010 4:04:45 PM

Re: None

Post# of 3688
Note boosts Transocean shares, but rally may fade

1:29 pm ET 09/10/2010- MarketWatch Databased News
LOS ANGELES (MarketWatch) -- A note from a Bank of America analyst that said Transocean may be absolved of liability in the Deepwater Horizon Gulf of Mexico spill, gave an 8% lift to the company's shares Friday, but the rally may be short-lived.

The note from B. of A.'s Douglas Becker disclosed comments from BP Plc's incoming Chief Executive Bob Dudley in a meeting with analysts. Dudley reportedly said contracts related to the Macondo oil well relieved both Transocean , the operator of Deepwater Horizon, and subcontractor Halliburton Co. , hired to seal the rogue conduit, from liability in the incident, Becker noted.

"Importantly, BP does not intend to seek compensation from either company unless the Department of Justice finds gross negligence," Becker's note said. "Given the difficult in proving gross negligence, we view this as a positive for [Transocean], and to a lesser extent [Halliburton]."

BP officials did not immediately comment on the report. But B. of A. officials later said that they had been contacted by BP officials who now dispute Becker's account of Dudley's comments.

Earlier this week, BP released a report after conducting its own investigation into the April 20 explosion aboard Deepwater Horizon that killed 11 workers and created the worst oil spill in U.S. history. Millions of gallons of oil spewed into the Gulf of Mexico for three months about 50 miles off the Louisiana coast while crews tried to cap the out-of-control wellhead.

BP had shifted some of the blame for the incident to both Transocean and Halliburton, and both companies responded by saying that BP should be shouldering more of the responsibility.

Becker's note said that Transocean's shares are down 40% since the incident, and that the market had baked in a $6 billion liability for the company.

"We believe this is excessive based on conversations with lawyers and the emerging fact pattern," Becker wrote. "However, we have maintained a neutral rating based on headline risk."

After rising more than 8% at one point, Transocean shares were up 7.95 to $59.66 in recent action. The note apparently gave a slight boost to Halliburton, which was up 2% to $30.78.
Recent RIG News

FEATURED Goldshore Resources Announces Public (NSERC & MITACS) and Educational (Lakehead University) Tri-Party Institutional Partnership with Alliance Grant May 25, 2022 8:20 AM

OTC: ILUS, ILUS International (Ilustrato Pictures International Inc) Agrees Terms With an Acquisition Delivering Upwards of $100 Million in Annual Revenue ILUS May 25, 2022 11:52 AM

Branded Legacy, Inc. To Introduce New Delta 9 blend THC-0/Delta-8 Blend Gummies Sell Out Again BLEG May 25, 2022 8:30 AM

Ultrack Systems Fully Acquires California Trucking Company M-Loan Inc. MJLB May 24, 2022 9:30 AM

SciSparc and Clearmind Medicine Inc. Collaboration Yields Positive Results for its Psychedelic Combination Treatment CMND May 24, 2022 8:36 AM

PSYC Teams Up with The Spore Group to Bring Industry-Leading, Psychedelic-Focused Events to Communities Across North America PSYC May 24, 2022 8:30 AM

Splash Beverage Group Broadens Reach through Agreement with Maryland's Buck Distributing SBEV May 24, 2022 8:12 AM

Electromedical Technologies Announces Financial and Operational Highlights for the Three Months Ended March 31, 2022 EMED May 24, 2022 6:00 AM


A.I.S. Resources Identifies Prospective Drill Targets at Reliance Reef and Provides Bright Gold Project Update AIS May 20, 2022 8:00 AM

Lomiko Announces Commencement of Exploration Drilling for its La Loutre Graphite Project LMR May 19, 2022 10:56 AM

PTOP Announces MOBICARD ™ 2.0 Development Contract has been executed PTOP May 19, 2022 10:00 AM

Edison Lithium Spin-Out of Cobalt Assets EDDYF May 19, 2022 8:00 AM

Goldshore Resources Announces Innovative Technology Application for Moss Lake Project Exploration and Closing of Non-Brokered Financing GSHRF May 19, 2022 8:00 AM

Demand Brands kicks off cultivation at Corralitos Farms DMAN May 18, 2022 2:00 PM

Day Range:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 2M
  • 3M
  • 6M
  • 1Y
  • 2Y
  • 3Y
  • 5Y