(Halliburton cement test story updated to reflect contract clauses related to liability in Halliburton-BP contract, and analyst comment)
NEW YORK (TheStreet) -- Shares of Halliburton (HAL) dropped by as much as 10% on Thursday afternoon after a presidential commission revealed that tests conducted before the BP Macondo oil spill showed that cement used by Halliburton were liable to create unstable conditions.
The presidential commission said Halliburton did not send any alarm signals to BP, though Halliburton did communicate the results of cement tests. The commission also stressed that BP's full knowledge of the cement problems is still unknown.
The tests support the claim by BP (BP) that there were several parties at fault for the oil spill, and in particular, BP's claim that it was a "bad cement job," a claim made by former BP CEO Tony Hayward in the BP interim report on the oil spill.
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