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Anadarko (APC) agrees to pay BP (BP) $4B to help clean up the Gulf of Mexico oil spill. However,...

Anadarko (APC) agrees to pay BP (BP) $4B to help clean up the Gulf of Mexico oil spill. However, Anadarko may have got off lightly given that it had a 25% share in the well that caused the disaster. With BP pegging total costs at $42B, Anadarko could have faced a potential bill of around $10B. (PR)
Comments (3)
  • Mike Walker
    , contributor
    Comments (326) | Send Message
     
    my estimate was 1. they would settle 2. settlement would be in the range of $2B to $4B 3. settlement would transfer lease ownership to APC and not to BP and 4. BP would indemnify APC for fines.

     

    so overall i would rate the news as disappointing to APC shareholders with the positive that a major cloud of uncertainty has been lifted from the stock.

     

    handicap the APC open at $67. Down $3.50 a share.

     

    disclosure - long shares, short oct 70 calls.
    17 Oct 2011, 03:52 AM Reply Like
  • tokyostory88
    , contributor
    Comments (32) | Send Message
     
    The settlement might indicate that Anadarko like its other co-shareowner in Macondo (Mitsui) now recognise that on the balance of probability, BP America and their other group companies will not be found (in the end) singularly grossly negligent and thus liability is proportionate to equity ownership in the well.
    17 Oct 2011, 07:03 AM Reply Like
  • Richard Mackenzie
    , contributor
    Comments (453) | Send Message
     
    This tells me that BP knows it will not end up really having to clean up the Gulf. They are betting on a Republican victory next election, and are just slow-rolling the effort until then. Smart.
    17 Oct 2011, 09:26 AM Reply Like
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