(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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV