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Halliburton and BP’s mess will change the way contractors do business

Marketplace Staff Oct 29, 2010
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Halliburton and BP’s mess will change the way contractors do business

Marketplace Staff Oct 29, 2010
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TEXT OF INTERVIEW

STEVE CHIOTAKIS: The White House panel investigating the oil spill in the Gulf of Mexico says British oil giant BP may not be the only one to blame. The panel’s chief investigator claims Halliburton — which contracted to build the oil rig that exploded and caused the spill — didn’t clearly inform BP the cement mix it used on the well was unstable. Overseas today, investors have been buying BP shares as a result.

Barbara Shook is Houston Bureau Chief and reporter-at-large for Energy Intelligence Group. She’s live with us from Houston. Good morning Barbara.

BARBARA SHOOK: Good morning.

CHIOTAKIS: To what extent does this absolve BP’s responsibility if at all?

SHOOK: I don’t think absolves BP’s responsibility at all. Halliburton issued a long statement last night about four pages rebutting everything that was in the Presidential commission’s charges, and then some.

CHIOTAKIS: Does this change the way contractors do business with these oil companies?

SHOOK: Yes, it has. Contractors and the oil companies are now stipulating far more detail in the terms of their relationships than they have before.

CHIOTAKIS: Far more details to sort of, you know, make sure that they’re not held responsible.

SHOOK: Make sure that the responsibility is spelled out. Who is exactly responsible for what. And also being more careful about how indemnifies whom for what.

CHIOTAKIS: And what does this mean for Halliburton going forward?

SHOOK: It probably won’t have any impact for Halliburton. Yesterday the company posted their contract with BP on their website and one clause in there would proport at least to a non-legal mind to completely indemnify Halliburton for an financial responsibility for what’s happen.

CHIOTAKIS: And keeps it in BP’s hands, right?

Absolutely.

CHIOTAKIS: Alright, Barbara Shook from Energy Intelligence Group. Thanks.

SHOOK: You’re welcome.

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