BP's (BP) Mitsui (MITSY) Deal Clarifies Gulf Liability

Uncertainty as to the liability that BP's (NYSE:BP) partners in the Gulf of Mexico Macondo well became clearer for Anadarko (NYSE:APC) after a deal was struck between BP and Mitsui (OTC:MITSY) to pay $1.1 billion to BP for cleanup costs in the Gulf.

Mitsui owns a 10 percent stake in the well and Anadarko a 25 percent stake.

By extension, it would imply a $2.66 billion cleanup settlement for Anadarko, less than had been anticipated, pushing up the share price of the company.

Billions more will be worked out in a settlement between BP and its two partners concernings fines, and Mitsui and Anadarko appear ready to do their part and put the issue behind them.

Anadarko was trading at $75.18, gaining $3.54, or 4.94 percent, as of 11:55 AM EDT. Mitsui was trading at $334.86, up $2.24, or 0.67 percent. BP was at $44.83, rising $0.94, or 2.14 percent.

Transocean (RIG) Poor Safety Culture Contributes to Gulf Spill, Alleges Coast Guard

Saying the emergency training, equipment and safety culture of Transocean (NYSE:RIG) had flaws in it, the Coast Guard released a report alleging the company contributed to the failure of the Deepwater Horizon oil rig which exploded in the Gulf of Mexico while extracting oil and gas from the Macondo well owned by BP (NYSE:BP).

Transocean owned the rig, and was thus the primary bearer of responsibility for its safety, the reason the Coast Guard zeroed in on them.

According to the report, electrical equipment that may have been responsible for igniting the explosion was poorly maintained, while gas alarms and automatic shutdown systems were bypassed so that they did not alert the crew. Also alleged was rig workers didn't receive proper training on how and when to disconnect the rig from the well to avoid an explosion.

The reported concluded, "These deficiencies indicate that Transocean's failure to have an effective safety management system and instill a culture that emphasizes and ensures safety contributed to this disaster."

Transocean closed Thursday at $75.41, falling $0.20, or 0.26 percent.

Cameron's (CAM) BOP in BP (BP) Gulf Disaster Failed Because of Blind Shear Rams

A government report said the cause of the failure of the blowout preventer made by Cameron International (NYSE:CAM) and related to the Macondo well operated by BP (NYSE:BP), was from the inability of blind shear rams to close and seal the leaking well.

From a report commissioned by the Interior Department and Department of Homeland Security, the conclusion was, "The primary cause of failure was identified as the (blind shear rams) failing to fully close and seal due to a portion of drill pipe trapped between the blocks."

A section of pipe on BP Plc’s Gulf of Mexico well became trapped and kept the blades from cutting the pipe to stop the flow of oil, resulting in the largest U.S. offshore spill.

The blind shear rams, part of a 50-foot stack of valves called a blowout preventer, failed to “fully close and seal” the well, according to the report released Wednesday. The pipe buckled in a blast, which prevented the rams from pinching the pipe shut and allowed oil and gas to surge to the surface.

Cameron International's spokeswoman Rhonda Barnat said, “We continue to work with the industry to ensure safe operations.”

Citigroup (NYSE:C) Boosts PT on Cameron International (NYSE:CAM)

Cameron International (NYSE:CAM), which provided the blowout preventer for BP (NYSE:BP) in the Macondo oil well disaster in the Gulf of Mexico, had its price target boosted by Citigroup (NYSE:C).

Citigroup also has a higher EPS estimate on Cameron for 2011, seeing it at $2.75, versus consensus of $2.74. They're also higher with their EPS estimate for 2012, projecting it to be $3.40, versus consensus of $3.35 a share.

Cameron manufactures equipment used in the gas and oil industry.

Cameron International closed Thursday at $56.99, up $0.91, or 1.62 percent. Citigroup maintains their "Hold" rating on Cameron, while raising their price target on the company from $54 to $58.

Anadarko Petroleum's (NYSE:APC) Caesar/Tonga Gulf Project Delayed

Citing testing that found faulty equipment, Anadarko Petroleum (NYSE:APC) has put its Caesar/Tonga deepwater oil development project in the Gulf of Mexico of hold.

Anadarko, which owns 25 percent of the Macondo well, the one which BP (NYSE:BP) lost control of, says the Caesar/Tonga will start producing later than originally planned

Anadarko closed Monday at $77.08, gaining $2.90, or 3.91 percent.

They, along with other oil companies, are again benefiting from rising oil prices.