CORRECT: Anadarko Tells BP It's Withholding Oil-Spill Payment

9th Jul 2010 20:34

("UPDATE: Anadarko Tells BP It's Withholding Oil-Spill Payment" published at 2:59 a.m. EDT misstated the name of Mitsui's executive in the fifth paragraph. The correct version follows.) By Isabel Ordonez Of DOW JONES NEWSWIRES HOUSTON (Dow Jones)--Anadarko Petroleum Corp. (APC) said Friday it told BP PLC (BP, BP.LN) that it is withholding reimbursement payments for expenses related to the massive oil spill in the Gulf of Mexico. Houston-based Anadarko, which owns a 25% stake in the BP-operated Macondo well, has been fighting against taking any financial responsibility for the spill sprung in late April when the Deepwater Horizon burned and sank. While BP has taken responsibility for the clean-up, it has also said its partners should share in the costs. Anadarko CEO Jim Hackett in June called the accident "preventable and the direct result of BP's reckless decision and actions," allegations that BP rejected. The company also has said its contract with BP contains a clause limiting its liability if misconduct or negligence by the operator is proved. "We have notified BP that we are withholding reimbursement to BP at this time," Anadarko's spokesman John Christiansen said in an emailed statement. Anadarko, however, said it is working with BP "in good faith," to try to reach a resolution. In early June, BP billed Anadarko just over $272 million for May expenses, according to an invoice provided by the subcommittee on Federal Financial Management, Government Information, Federal Services and International Security. BP spokesman Daren Beaudo confirmed the company received the letter from Anadarko on July 7 and said the company is "disappointed." The British oil giant hasn't yet gotten a reply from the other partner in the well, Japan's Mitsui & Co. (8031.TO), which owns a 10% stake in Macondo, on whether it will pay. Mitsui was billed around $111 million, according to an invoice provided by the Senate subcommittee. BP said Mitsui has until July 12 to give an answer. A Senate aide said Friday that Anadarko's Hackett and Naoki Ishii, the CEO Mistui's oil-exploration unit, will testify on their liability in the Gulf oil spill before the subcommittee on July 22. This will be the first time that the top executives of BP's partners will give lawmakers their view on their responsibility for the spill-recovery costs. "We need to make sure that the taxpayer is not left on the hook for the damages associated with this disaster and an important part of that effort is ensuring that the party or parties responsible pay for all of the damages," said the subcommittee's chairman, Sen. Tom Carper (D-Del.), in an emailed statement. -By Isabel Ordonez, Dow Jones Newswires; 713-314-6090; [email protected] (END) Dow Jones Newswires July 09, 2010 15:34 ET (19:34 GMT)