Transocean Offshore Deepwater Drilling, Inc. (TODDI) has filed a motion for summary judgment in the U.S. Eastern District Court in Louisiana requesting the court to force BP to honor its contractual obligation to defend, indemnify and hold harmless Transocean for damages associated with BP’s failure to contain flow from its Macondo well in 2010. Transocean says BP has refused to honor its contractual obligations despite what Transocean says is the industry-standard reciprocal indemnity provisions contained in the drilling contract. The original contract was signed in 1998 and extended several times up to and including in 2009. Language in the contract says BP will “defend, release, protect, indemnify and hold harmless” Transocean for any and all fines, penalties and damages associated with environmental pollution originating from the well “without limit and without regard to the cause or causes” including negligence, “whether such negligence be sole, joint, active, passive or gross.” The motion also asserts that after months of discovery and over 200 witness dispositions, it was clear that no evidence of gross negligence by Transocean existed. BP filed suit against Transocean on the one-year anniversary of the incident, alleging that Transocean personnel had willful and callous disregard for the welfare of ...

Petrobras America, Inc. (PAI) received permit approval from the BOEMRE on September 2 to drill a well in its Cascade field in Walker Ridge Block 206. The company is the first non-member of the Marine Well Containment Company (MWCC) to receive an approved drilling permit. The MWCC system can be made available to non-members on a well by well basis and allows the operator to cite the system in its permit applications. PAI has ENSCO, plc drillship ENSCO DS-5 under contract and has moved the rig onto location. Drilling and completion operations are scheduled to last 231 days, which will keep the rig on location to April/May 2012. Water depth at the site is 8,143 fsw.

Mexican state oil company Pemex will confirm recent jackup contract awards on September 15 for tender 521-11. In Part 1, a 612-day term starting October 22, 2011, Diamond Offshore was the low bidder with the Ocean Scepter. The rig is currently working for OGX in Brazil under a one-year contract that is not scheduled to end until February 2012. It is unclear as to how the rig will be freed up to mobilize to Mexico. The original day rate cap of $124,000 was ...