Gulf of Mexico Oil Spill

Lord Jopling Excerpts

Monday 14th June 2010 Lords Chamber

[Lord Marland]

I thank the noble Lord for his two questions, both of which were extremely valid. I can state categorically that there is no evidence that this project was not managed properly. I think that I am right in saying that Transocean is the largest contracting operator in the world. It has great experience and this was very much an integrated programme. On US regulation, as I have mentioned, I am sure that there will be a lot of deep thinking—as there always is after such a tragic and dreadful environmental disaster—by the US Government, who will be searching deeply for the changes that they should make. We commit to keeping noble Lords advised on those developments.

[Lord Jopling]

My Lords, whatever the ultimate cost of this tragedy to the oil companies concerned, can the Minister give a broad indication as to the extent to which those companies are covered by their various insurers?

[Lord Marland]

Obviously, I cannot go into specific detail as to insurance coverage; that is for the companies and their balance sheets. I admit that I used to be in the insurance business and have a rough idea of what is going on. I am sure that some insurance salesman will be keen to sell a little more as a result. The message that we have received from the London insurance market is that the insurance companies are there to pay for the losses, which they have already estimated. They are in the process of providing for those losses and, indeed, have already paid north of half a billion pounds-worth to some of the companies involved.

My noble friend put his finger on a broader point. Only 65 per cent of the oil well was owned by BP; 25 per cent was owned by an American company called Anadarko and 10 per cent by Mitsui. As regards the drilling well itself, Transocean was the drilling contractor, Cameron was the manufacturer of the blow-out preventer, Halliburton was responsible for the cement casing, and we should give great credit to BP that it has stood up to be counted through these very difficult times and has been prepared to stand in the spotlight. It has behaved extremely properly in this regard, as one would expect of a major multinational corporation.