BP and Transocean expecting lawsuits over major oil spill
Oil giant BP and drilling firm Transocean are both expecting lawsuits over the major oil spill in the Gulf of Mexico.
The oil slick is already a devastating impact on the area’s fishing industry with experts concerned over much wider environmental damage if the full slick hits land.
BP has been battling to contain the oil spillage after the Deepwater Horizon platform sank two days after a massive explosion on 20 April, which left 11 workers dead.
The National Oceanic and Atmospheric Administration (NOAA) recently warned that the major oil spill was five times worse than originally estimated.
Thousands of barrels of oil have been leaking into the Gulf of Mexico every day since the oil rig sank and while some oil has washed ashore, officials say the bulk of the slick remains a few miles from the Louisiana coastline.
According to BP, it could be at least a week before temporary measures to stem the leak are in place.
However, it warned it could take up to three months to drill relief wells that could fully contain the slick.
After visiting the site, US President, Barack Obama, told BP it will pay the bill for the clean up to which BP acknowledged it was “absolutely responsible” for the clean up operation.
According to experts, the cost of clearing up the spillage could run into billions of dollars.
However, BP Group Executive, Tony Hayward, said the firm was not responsible for the accident and blamed the failed equipment, which belongs to Transocean.
Both companies are expecting lawsuits over the oil spillage, which Mr Obama has described as a “potentially unprecedented” environmental disaster.
BP’s shares have slumped since the accident, which has wiped around $20 billion off the firm’s value.
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