Rialto Energy, Vantage Drilling Agree to $12.4M Settlement

Rialto Energy Ltd. and Vantage Drilling Company have settled an agreement regarding payment terms in regards to the early termination of the rig contract regarding Vantage's Sapphire Driller (375' ILC) jackup.

Rialto has agreed to pay Vantage an amount equivalent to 75 days of the operating rate, about $12.38 million. The original contract had specified a rate of $17.33 million for 105 days.

The company had contracted the rig until December 2013 to explore Block CI-202.

In April 2013, Rialto and Vitol E&P entered into a contract to jointly develop Rialto's interests in Cote d'Ivoire and Ghana. Vitol acquired, subject to regulatory and joint venture partner approval, a 20 percent stake in Rialto Energy (Ghana) Limited in exchange for funds to cover Rialto's $7.7 million obligation to drill the high-impact Starfish-1 exploration well in the Accra Block, Ghana – which is due to spud in June 2013.

Additionally, Vitol will acquire 65 percent of the shares in Rialto Energy (Cote d'Ivoire) Limited in exchange for providing $50 million of capital to be invested in a to-be-agreed Block CI-202 work program. The deal also called for the release of the Sapphire drilling rig, according to an April 23 press release.

"Whilst we are disappointed to have had to make the difficult decision to terminate the rig contract, it was made to ensure that Rialto and Vitol had sufficient time to finalize matters around our recently announced deal and to work together on a robust technical program in Block CI-202," Rialto's Managing Director Rob Shepherd said in a press release. "We are continuing to work with Vitol on finalizing the transaction and are doing everything possible to bring this to a swift conclusion."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
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Rialto Energy, Vantage Drilling Agree to $12.4M Settlement

Rialto Energy Ltd. and Vantage Drilling Company have settled an agreement regarding payment terms in regards to the early termination of the rig contract regarding Vantage's Sapphire Driller (375' ILC) jackup.

Rialto has agreed to pay Vantage an amount equivalent to 75 days of the operating rate, about $12.38 million. The original contract had specified a rate of $17.33 million for 105 days.

The company had contracted the rig until December 2013 to explore Block CI-202.

In April 2013, Rialto and Vitol E&P entered into a contract to jointly develop Rialto's interests in Cote d'Ivoire and Ghana. Vitol acquired, subject to regulatory and joint venture partner approval, a 20 percent stake in Rialto Energy (Ghana) Limited in exchange for funds to cover Rialto's $7.7 million obligation to drill the high-impact Starfish-1 exploration well in the Accra Block, Ghana – which is due to spud in June 2013.

Additionally, Vitol will acquire 65 percent of the shares in Rialto Energy (Cote d'Ivoire) Limited in exchange for providing $50 million of capital to be invested in a to-be-agreed Block CI-202 work program. The deal also called for the release of the Sapphire drilling rig, according to an April 23 press release.

"Whilst we are disappointed to have had to make the difficult decision to terminate the rig contract, it was made to ensure that Rialto and Vitol had sufficient time to finalize matters around our recently announced deal and to work together on a robust technical program in Block CI-202," Rialto's Managing Director Rob Shepherd said in a press release. "We are continuing to work with Vitol on finalizing the transaction and are doing everything possible to bring this to a swift conclusion."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit http://www.riglogix.com/.

View the original article here

US Court Rules Against BP on Oil Spill Settlement Payments Dispute

A federal judge denied BP PLC's plea to halt payments from a settlement fund set up to reimburse businesses and individuals for losses from the 2010 Deepwater Horizon accident.

During a hearing in New Orleans Friday morning, U.S. District Judge Carl Barbier rejected BP's arguments that the fund administrator, Patrick Juneau, was misinterpreting how claims should be assessed and payments calculated, according to lawyers who attended the hearing. BP claims the fund has made millions of dollars in payments for "fictitious" claims.

Lawyers representing the claimants argued the claims formulas were approved by BP. "The court's ruling speaks for itself," said Steve Herman, one of the lead lawyers representing thousands of businesses and individuals.

BP said in a statement that it has already appealed an earlier decision on the fund's payments to the U.S. Court of Appeals for the Fifth Circuit.

BP said it still believes that Mr. Juneau's interpretation of payment formulas is wrong, resulting in "unjustified windfall payments to numerous business claimants for non-existent, artificially calculated losses."

The ruling wasn't a surprise given Judge Barbier's previous rejection of BP's arguments, said Tom Claps, an analyst and legal expert with Susquehanna Capital, who has closely followed the case. It will be very difficult for the oil giant to score a victory at the appeals court because the settlement was "extensively negotiated, drafted and approved by BP and its legal team," Mr. Claps said.

The hearing took place during a break in the ongoing civil trial aimed at determining the degree of culpability that BP and other companies have for the accident. Judge Barbier has heard six weeks of testimony from employees of BP, drilling rig owner Transocean Ltd., cement contractor Halliburton Co. and expert witnesses.

Copyright (c) 2013 Dow Jones & Company, Inc.

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US, States Mull Extending $16B Oil-Spill Settlement Offer to BP

The U.S. Justice Department and Gulf Coast states are mulling offering BP PLC a $16 billion deal to settle civil claims related to the deadly 2010 Deepwater Horizon incident, according to people familiar with the discussions.

The settlement offer would cover potential fines owed by BP under the Clean Water Act and payments under another process known as the Natural Resources Damage Assessment, or NRDA, the people said. The fines stem from the massive Gulf of Mexico oil spill that ensued from the Deepwater Horizon well blowout in April 2010.

BP's potential Clean Water Act fines could run as high as $17.6 billion, but the company has argued they would likely be less than $5 billion. The NRDA payments could also run into the billions, but they are tax deductible for BP. BP must be found to have been grossly negligent in its role leading up to the blowout and spill to receive the highest penalty. The company argues it wasn't grossly negligent and prosecutors and plaintiffs have a very high bar to clear to prove otherwise.

The potential settlement offer helps illustrate the thinking of federal and state governments about the largest penalty BP faces in the wake of the Deepwater Horizon saga, a figure that has been subject to wildly ranging guesses. But it is far from certain that even if the offer is made, it will bring the U.K.-based oil company closer to a deal.

The first of two Deepwater Horizon trials is set to begin Monday before a federal judge in New Orleans.

It isn't clear if the offer has been formally proposed to BP, which declined to comment. BP said previously it was open to negotiations but that it was fully prepared to start trial Monday. The Justice Department, which also stated earlier this week it was prepared to go to trial, declined to comment as well.

Federal and state officials met in Washington, D.C., last week to work on terms of a settlement offer and continued discussions throughout this week, according to the people familiar with the negotiations.

The people said among the disagreements between the governments are how much of the fines will fall under the Clean Water Act and how much will fall under NRDA. A law passed by Congress would give the states control over 80% of Clean Water Act fines, while NRDA fines would go to specific wildlife and natural habitat restoration projects. Louisiana would likely receive the most NRDA funds since that state's coast line and waters were most directly affected by the spill.

Terms of the offer and settlement discussions could continue even through the beginning of the trial, the people said.

Tuesday, a judge agreed with BP and the Justice Department that 810,000 gallons of the estimated 4.9 million gallons the government has said leaked from the well were successfully captured by spill-response vessels and shouldn't count against any future fines. That ruling effectively reduced the maximum possible Clean Water Act fines by $3.48 billion.

BP previously agreed to a $4 billion settlement of criminal charges related to the blowout on the Deepwater Horizon drilling rig and the ensuing spill, as well as a $525 million civil settlement with the Securities and Exchange Commission. Transocean Ltd. (RIG, RIGN.VX), the owner of the rig, agreed to a $400 million criminal settlement and $1 billion civil settlement for violations of the Clean Water Act.

BP says it is eager to fight it out in court, believing past settlement offers didn't adequately reflect the company's legal position. In an interview with The Wall Street Journal this week, BP General Counsel Rupert Bondy said of the few Clean Water Act cases that go to trial, the per-barrel penalties are significantly less than the maximum allowed. He also noted judges take into account several other factors when determining penalties, such as a company's efforts to address the environmental impacts of the spill.

BP has spent more than $14 billion on spill response and cleanup, paid out more than $9 billion to Gulf Coast businesses and individuals impacted by the spill, and committed billions more to environmental restoration and research.

"Facing demands that we believe are excessive, not anchored in reality or the merits of the case, we are preparing ourselves to start the trial in one week's time," Mr. Bondy had said Monday.

Copyright (c) 2012 Dow Jones & Company, Inc.

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US, States Mull Extending $16B Oil-Spill Settlement Offer to BP

The U.S. Justice Department and Gulf Coast states are mulling offering BP PLC a $16 billion deal to settle civil claims related to the deadly 2010 Deepwater Horizon incident, according to people familiar with the discussions.

The settlement offer would cover potential fines owed by BP under the Clean Water Act and payments under another process known as the Natural Resources Damage Assessment, or NRDA, the people said. The fines stem from the massive Gulf of Mexico oil spill that ensued from the Deepwater Horizon well blowout in April 2010.

BP's potential Clean Water Act fines could run as high as $17.6 billion, but the company has argued they would likely be less than $5 billion. The NRDA payments could also run into the billions, but they are tax deductible for BP. BP must be found to have been grossly negligent in its role leading up to the blowout and spill to receive the highest penalty. The company argues it wasn't grossly negligent and prosecutors and plaintiffs have a very high bar to clear to prove otherwise.

The potential settlement offer helps illustrate the thinking of federal and state governments about the largest penalty BP faces in the wake of the Deepwater Horizon saga, a figure that has been subject to wildly ranging guesses. But it is far from certain that even if the offer is made, it will bring the U.K.-based oil company closer to a deal.

The first of two Deepwater Horizon trials is set to begin Monday before a federal judge in New Orleans.

It isn't clear if the offer has been formally proposed to BP, which declined to comment. BP said previously it was open to negotiations but that it was fully prepared to start trial Monday. The Justice Department, which also stated earlier this week it was prepared to go to trial, declined to comment as well.

Federal and state officials met in Washington, D.C., last week to work on terms of a settlement offer and continued discussions throughout this week, according to the people familiar with the negotiations.

The people said among the disagreements between the governments are how much of the fines will fall under the Clean Water Act and how much will fall under NRDA. A law passed by Congress would give the states control over 80% of Clean Water Act fines, while NRDA fines would go to specific wildlife and natural habitat restoration projects. Louisiana would likely receive the most NRDA funds since that state's coast line and waters were most directly affected by the spill.

Terms of the offer and settlement discussions could continue even through the beginning of the trial, the people said.

Tuesday, a judge agreed with BP and the Justice Department that 810,000 gallons of the estimated 4.9 million gallons the government has said leaked from the well were successfully captured by spill-response vessels and shouldn't count against any future fines. That ruling effectively reduced the maximum possible Clean Water Act fines by $3.48 billion.

BP previously agreed to a $4 billion settlement of criminal charges related to the blowout on the Deepwater Horizon drilling rig and the ensuing spill, as well as a $525 million civil settlement with the Securities and Exchange Commission. Transocean Ltd. (RIG, RIGN.VX), the owner of the rig, agreed to a $400 million criminal settlement and $1 billion civil settlement for violations of the Clean Water Act.

BP says it is eager to fight it out in court, believing past settlement offers didn't adequately reflect the company's legal position. In an interview with The Wall Street Journal this week, BP General Counsel Rupert Bondy said of the few Clean Water Act cases that go to trial, the per-barrel penalties are significantly less than the maximum allowed. He also noted judges take into account several other factors when determining penalties, such as a company's efforts to address the environmental impacts of the spill.

BP has spent more than $14 billion on spill response and cleanup, paid out more than $9 billion to Gulf Coast businesses and individuals impacted by the spill, and committed billions more to environmental restoration and research.

"Facing demands that we believe are excessive, not anchored in reality or the merits of the case, we are preparing ourselves to start the trial in one week's time," Mr. Bondy had said Monday.

Copyright (c) 2012 Dow Jones & Company, Inc.

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US Judge OKs Transocean's $1B Civil Spill Settlement

A New Orleans judge has approved Transocean Ltd.'s settlement agreement with the Justice Department to pay $1 billion in civil penalties for its part in the 2010 Macondo oil spill in the Gulf of Mexico.

U.S. District Judge Carl Barbier stated in his ruling Tuesday that there is "no just reason for delay" in approving the civil settlement, The Associated Press reported.

"We are not commenting on this piece - we will let the settlement speak for itself," said Lou Colasuonno, spokesperson for Transocean, in an exclusive Rigzone phone interview.

Another U.S. federal judge approved Transocean's $400 million criminal settlement Feb. 14, in which the company pleaded guilty to a misdemeanor charge, resulting in one of the largest criminal Clean Water Act fines and penalties in U.S. history.
In total, Transocean will pay $1.4 billion in criminal and civil penalties.

Transocean, which employed nine of the 11 workers killed in the accident, owned the Deepwater Horizon drilling rig that exploded and sank over BP's Macondo well in April 2010.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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US Judge OKs Transocean's $1B Civil Spill Settlement

A New Orleans judge has approved Transocean Ltd.'s settlement agreement with the Justice Department to pay $1 billion in civil penalties for its part in the 2010 Macondo oil spill in the Gulf of Mexico.

U.S. District Judge Carl Barbier stated in his ruling Tuesday that there is "no just reason for delay" in approving the civil settlement, The Associated Press reported.

"We are not commenting on this piece - we will let the settlement speak for itself," said Lou Colasuonno, spokesperson for Transocean, in an exclusive Rigzone phone interview.

Another U.S. federal judge approved Transocean's $400 million criminal settlement Feb. 14, in which the company pleaded guilty to a misdemeanor charge, resulting in one of the largest criminal Clean Water Act fines and penalties in U.S. history.
In total, Transocean will pay $1.4 billion in criminal and civil penalties.

Transocean, which employed nine of the 11 workers killed in the accident, owned the Deepwater Horizon drilling rig that exploded and sank over BP's Macondo well in April 2010.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Transocean: US Judge Approves Criminal Settlement with DOJ

A federal judge in New Orleans approved Transocean Ltd.'s $400 million criminal settlement with the U.S. Justice Department over the 2010 Deepwater Horizon accident, a spokesman for the company said Thursday.

Judge Jane Triche Milazzo accepted Transocean's guilty plea to one criminal misdemeanor violation of the Clean Water Act for failing to properly monitor the well at the time of the deadly 2010 blowout in the Gulf of Mexico, the spokesman said.

The company will pay a $100 million fine within 60 days and $150 million each over the next three to five years to the National Fish and Wildlife Foundation and the National Academy of Sciences for oil-spill response and habitat rehabilitation.

Transocean has also agreed to pay $1 billion in fines for civil violations of the Clean Water Act, but that settlement must be approved separately by another judge. The settlement agreements were announced in early January.

Transocean was the owner of the drilling rig that exploded in April 2010, killing 11 workers and triggering the largest offshore oil spill in U.S. history.

Oil giant BP PLC, which was leasing the rig to drill an exploratory well, agreed to pay $4.5 billion in November to settle all criminal and some civil charges in the case.

BP still faces what could be many billions of dollars in fines for violating the Clean Water Act, as well as billions of dollars in payments under the Natural Resources Damages Assessment process. The first phase of a civil trial over culpability in the accident is scheduled to begin before a federal judge in New Orleans on Feb. 25.

Transocean is also a party in that civil lawsuit, but only faces claims from Gulf Coast businesses and individuals who previously settled with BP. Transocean has argued it is indemnified by most of those claims through its drilling contract with BP.

Copyright (c) 2012 Dow Jones & Company, Inc.

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