Transocean, state agree on $20M

Published 10:16 pm Thursday, October 22, 2015

Gov. Robert Bentley on Thursday announced that Alabama has agreed to a settlement with Transocean Offshore Deepwater Drilling, Inc., which owned the Deepwater Horizon. Alabama will receive $20 million.

“The State of Alabama suffered tremendous environmental and economic losses because of the BP/Deepwater Horizon oil spill in April 2010,” Bentley said. “I appreciate the entire Alabama team for working to ensure Alabama is fairly compensated. This agreement with Transocean is another positive step forward as we continue to recover from the effects of such a significant environmental and economic disaster.”

On April 20, 2010, the Deepwater Horizon floating drilling rig owned by Transocean and used by BP, experienced a well destabilization that ultimately led to an explosion causing catastrophic fires, a leak of more than 3 million barrels of oil into the Gulf of Mexico, and the death of 11 people. As a result, Alabama’s Gulf Coast and the surrounding area experienced significant environmental and economic damages, as did the State of Alabama.

Earlier this year, an agreement in principle was reached with BP that resulted in an agreement to pay the State of Alabama $2.3 billion, with $1.3 billion going directly to the Gulf Coast region and $1 billion to be paid to the state.

The Transocean settlement will go into the State General Fund.