Transocean Tries to Cap Oil Spill Liability

Transocean is plans to file a federal court petition to put a cap on its oil spill liability to slightly under $27 million, a report says.
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NEW YORK (

TheStreet

) --

Transocean

(RIG) - Get Report

-- which owned and operated the Deepwater Horizon drilling rig that exploded and sank in late April, leading to 11 fatalities and a devastating

oil leak

in the Gulf of Mexico -- is planning to file a federal court petition on Thursday to put a cap on its legal liability to slightly under $27 million, a report says.

The filing is being made with the U.S. District Court in Houston under a law dating back more than a century and a half, originally created to help U.S. ship owners compete with foreign vessels, according to

Dow Jones Newswires

Transocean is facing dozens of state and federal lawsuits over damages resulting from the oil spill; in the meantime,

BP

(BP) - Get Report

, which had leased the rig involved in the spill, is required to foot the bill for cleaning up the mess, the report says, citing government officials.

-- Reported by Andrea Tse in New York

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