Transocean rejects Anadarko claim of force majeure

[maddezmom]

SAN FRANCISCO, June 15 (Reuters) - Transocean Ltd (RIGN.S) (RIG.N) has rejected a claim of force majeure by Anadarko Petroleum Corp (APC.N) on a deepwater rig in the Gulf of Mexico due to the U.S. deepwater drilling moratorium.

Transocean, with 14 rigs in the Gulf of Mexico, said contracts varied in their treatment of an "actual" force majeure event, and "several customers" had indicated they might declare it, but it was pushing back against this trend.

"We do not believe that a force majeure event exists as a result of the drilling moratorium," Transocean said in its latest fleet update on Tuesday.

more:http://www.reuters.com/article/idUSN1510902320100615

UPDATE: Fitch Increases Chances Of Cutting Anadarko To Junk

DOW JONES NEWSWIRES Fitch Ratings became the last of the three major credit raters to cut its outlook on Anadarko Petroleum Corp. (APC) to negative because of increasing costs from the massive oil spill in the Gulf of Mexico.

Standards & Poor's Ratings Services last week lowered its outlook on the company to negative from stable, as Moody's Investors Service did the week before.

As a nonoperating partner in the underwater well, which is still gushing thousands of barrels of oil daily, Anadarko could potentially owe a 25% share of the containment and cleanup costs associated with the spill, as well as compensatory economic damages. The share reflects its 25% nonoperating working interest in the well where the Deepwater Horizon drilling rig exploded and sank in April.

Fitch said the negative outlook reflects the possibility that those costs could greatly exceed Fitch's current estimates. Currently, it believes Anadarko has the capacity to cover its requirements even if it does have to pay a full 25% of the costs and still remain investment grade. It doesn't expect the company to sustain any punitive damages.

more: http://online.wsj.com/article/BT-CO-20100615-713984.html?mod=WSJ_latestheadlines

[dipsydoodle]

1. Japan Mitsui

holds the bag on 10% too.