BP Internal Report Looks Like Bad News
August 29, 2010 7:48 AM
In an internal report that is expected to be released in the next 10 days, BP (NYSE: BP) reportedly discloses that its managers aboard the Deepwater Horizon rig misread pressure data that indicated the rig was primed to explode, according to Bloomberg News, which cited a person familiar with the report.
BP managers on the rig misread a test of the Macondo well’s stability on April 20 and began replacing drilling fluid, which is heavier than oil and natural gas, with seawater, Bloomberg reported.
The seawater wasn't capable of preventing the flow of natural gas into the well. That gas would later shoot up into the rig, causing the explosion and 11 deaths.
The report does say that BP is, at least in part, repsonsible for the explosion, but Transocean (NYSE: RIG), the rig's owner, also shares some responsibility, the report said.
Both companies have suspended dividends this year in an effort to save cash for spill-related expenses.
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