Transocean (RIG) Pops Higher on Favorable Deepwater Horizon Settlement

January 3, 2013 12:00 PM EST
Transocean (NYSE: RIG) shares are higher on the session following earlier headlines that it will be settling with the U.S. Department of Justice over the Deepwater Horizon incident of 2010.

The DoJ will settle both civil and criminal charges, with Transocean expected to pay about $1.4 billion. Previous SEC disclosure had the company in talks for a $1.5 billion settlement with the DoJ.

Transocean has set aside about $2 billion to cover pending Deepwater Horizon litigation.

BP plc (NYSE: BP) had been leasing the Deepwater Horizon rig with operations being conducted in the Gulf of Mexico at the time of the incident. In late 2012, BP agreed to pay $4.5 billion to settle all criminal and some civil charges.

Transocean shares are up 5.5 percent Thursday.

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