Rig firm’s $270m profit from deadly spill

[Joanne98]

Source: Timesonline

THE owner of the oil rig that exploded in the Gulf of Mexico, killing 11 people and causing a giant slick, has made a $270m (£182m) profit from insurance payouts for the disaster.

The revelation by Transocean, the world’s biggest offshore driller, will add to the political storm over the disaster. The company was hired by BP to drill the well.

The “accounting gain” arose because the $560m insurance policy Transocean took out on its Deepwater Horizon rig was greater than the value of the rig itself. Transocean has already received a cash payment of $401m with the rest due in the next few weeks.

The windfall, revealed in a conference call with analysts, will more than cover the $200m that Transocean expects to pay to survivors and their families and for higher insurance costs


Read more: http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article7120655.ece

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[Journeyman]

1. What an odd society in which we live. . .

Criminals are rewarded for their villainy, the innocent suffer and receive recompense out of balance to their injury.

[LawnKorn]

2. Transocean should have to forfeit all the insurance money to pay for the cleanup

Halliburton should have to give matching funds for the cleanup dollar-for-dollar.

[stuart68]

3. Transocean will lose a lot more than $200M

just efening lawsuits from BP. As for Haliburton, maybe you can explai that one - or is it simply the evil Haliburton thing ?

[dixiegrrrrl]

7. Halbirton was in the process of cementing the well when it blew.

There is a question if Haliburton did something wrong in the process, if so = liability also is
on them.

[HysteryDiagnosis]

4. What? They didn't sign a waiver that limited their payout should there

be a problem?? Unheard of.

[Zenlitened]

5. "...the $560m insurance policy...was greater than the value of the rig itself"

...the $560m insurance policy Transocean took out on its Deepwater Horizon rig was greater than the value of the rig itself...

Insurance policies that have the effect of incentivizing risk-taking, by making failure profitable...

Gee, I hope that sort of thing hasn't been going on in other segments of the economy. It could lead to disaster. Er, theoretically, I guess.

:silly:

Seriously, though. Maybe the article is written poorly, (it's been known to happen!) and the policy actually covers rig plus personnel, surviving family, lawyers, etc. So there's not really a "profit" for Transocean here.

But shouldn't a policy require certain safety standards? Or is everybody in the boardrooms on both sides of the deal happier with a higher premium for "yeah, whatever" coverage?

It becomes more apparent every day that we've got a business, regulatory and economic system where there really isn't a downside to sloppy work and careless behavior anymore. As long as you're one of the Big Boys.

Joe and Jane Mainstreet, on the other hand, are subject to punishment at any time. Whether we have any connection to the problem or not.

What a racket.

[Dr.Phool]

6. They used to call that arson.

[ConcernedCanuk]

8. The homeless and uninsured in the USA will be happy to know

.
.
.


That their government supports the oil barons

[bora13]

9. The crack-pipe finally broke

The crack-pipe finally broke and now all its silly tools are just scattered about down there.

[scentopine]

10. Goldman Sachs profited from the very disaster they created

and our Senators profited along with Goldman. The mainstream political parties know that their personal fortunes are directly linked to the suffering of and exploitation of a huge majority of Americans. And they claim that is the beauty of the free market.

After a sanctioned period of feigned concern, our democratic and republican leadership will be shilling for big oil faster than you can say "for profit health care".

Then the pom-poms will yell at us disenfranchised and burned-out democrats because we aren't spending cash and cheerleading like its 2008.

Mainstream politics, indeed.

[Turbineguy]

11. Trifecta

Deaths
Environmental disaster
Profit.