British energy company BP (NYSE: BP) today blamed “multiple parties” – naming Halliburton (NYSE: HAL) and Transocean (NYSE: RIG) – for its oil well spill that gushed millions of gallons of oil into the Gulf of Mexico and left 11 workers dead. The report ends a four-month investigation by the company’s own safety and operations chief.
“It is evident that a series of complex events, rather than a single mistake or failure, led to the tragedy,” outgoing CEO Tony Hayward said in a statement, which placed responsibility on BP, Halliburton and Transocean. The report faulted “a complex and interlinked series of mechanical failures, human judgments, engineering design, operational implementation and team interfaces.”
The report notes that the accident happened because of lengthy list of factors, including BP and Transocean staff misreading the results of a pressure test, the cement used at the bottom of the Macondo well, and the durability of the rig’s blow-out preventer – which didn’t work properly. The report comes after a PR-blitz of late that has slowly but surely introduced the other companies into the public conscience regarding the disaster.
Investors were ready to forgive with news of the report, as shares of BP advanced +3.31% on the New York Stock Exchange. BP fell nearly +60% after the disaster, which experts say is the single worst environmental disaster in the United States. The stock is down -33.78% against the Dow and S&P 500. Its price per share is $38.37
Shares of Halliburton haven’t been affect by the news. Transocean stock – which fell nearly 60% since the disaster – is up +2.21% in trading.
BP reported a $17.2 billion loss for its second quarter at the end of July, as it took $32.2 billion in charges linked to the spill. The company quickly named Robert Dudley as its new chief executive, due to replace Hayward on Oct. 1.
Fitch Ratings upgraded BP’s rating to A on Wednesday, although the ratings agency estimates that the energy company’s total liabilities will range from $35 billion to $67.5 billion.
Also in the report, BP proposes 25 recommendations designed to prevent another such accident, among them strengthening assurance on blow-out preventers, improved well control, pressure-testing for well integrity, emergency systems, cement testing, rig audit and verification, and personnel competence.
As of this writing, Burke Speaker did not own a position in any of the stocks named here.
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