Money Matters - Simplified

BP asks Halliburton to pay for oil spill damages

Halliburton in a court paper said that it was the actions of BP's employees that caused the explosion.

Oil giant BP has asked Halliburton to pay for the damages that occurred from oil spill in the Gulf of Mexico.

A case for the compensation was filled by BP lawyer Don Haycraft in US Federal court.

BP has accused its contractor Halliburton of destroying evidence that substandard cement work caused the oil spill.

The exact amount claimed is not yet revealed, but the compensation that BP is seeking is more than $20 billion.

Recently BP has reached agreement with Cameron International Corporation, designer and manufacturer of the Deepwater Horizon blowout preventer, to settle claims related to oil spill.

Halliburton's reactions
Halliburton in a court paper said that it was the actions of BP's employees that caused the explosion.

In an email Halliburton’s spokesperson said, “Halliburton believes it is fully indemnified by BP against any loss resulting from the Macondo incident and any penalties arising from the violations."

More cases
This is not the only legal case BP and Halliburton are involved in.

There are about 500 cases filed against these two companies by businesses and governments. A trial is scheduled to begin from February.

Recently BP has reached agreement with Cameron International Corporation, designer and manufacturer of the Deepwater Horizon blowout preventer, to settle claims related to oil spill.

As Cameron is paying the oil giant $250 million, BP said that it will "immediately apply the payment to the $20 billion trust it established to meet individual, business and government claims, as well as the cost of the natural resource damages."