BP can't use Transocean insurance for Gulf spillPosted On: Nov. 15, 2011 12:00 AM CST
(Reuters)—A federal judge denied BP P.L.C.’s bid to use insurance coverage from Transocean Ltd. to cover costs stemming from last year's Deepwater Horizon oil spill in the Gulf of Mexico.
Tuesday's decision by U.S. District Judge Carl Barbier is the second legal setback for BP in two days. On Monday, the same judge said Alabama and Louisiana may seek punitive damages from BP and other companies for spill-related damages.
In Tuesday's decision, Judge Barbier said that because Transocean did not assume oil pollution risks related to the disaster, while BP did, Transocean was not required to name BP as an insured on those risks.
Calls to representatives of BP and Transocean were not immediately returned.
BP owned a majority of the Macondo well whose blowout led to the spill, the largest in U.S. history, while Transocean owned the drilling rig.
The Deepwater Horizon's April 20, 2010, explosion caused 11 deaths.