Anadarko, Mitsui Executives to Testify Before Senate
7/09/10By ISABEL ORDONEZ – The heads of Anadarko Petroleum Corp. and Mitsui & Co.’s oil-exploration unit will testify before a U.S. Senate subcommittee July 22 on their liability in the Gulf of Mexico oil spill.
The testimony will be the first time executives of BP PLC’s partners in the Macondo well will give lawmakers their view on their responsibility for the recovery from the spill that resulted from the late April burning and sinking of Transocean Ltd.’s Deepwater Horizon rig.
The companies confirmed that Anadarko Chief Executive Jim Hackett and Yoshiyuki Kagawa, CEO of Mitsui Oil Exploration Co., Ltd., will testify in a hearing before the subcommittee on Federal Financial Management, Government Information, Federal Services and International Security, chaired by Sen. Tom Carper (D., Del.)
Kenneth Feinberg, the new administrator for the independent $20 billion escrow fund established by BP last month, will also testify, a Senate aide said.
“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,” Mr. Carper said in an emailed statement.
Anadarko, which owns a 25% interest in the BP-operated Macondo well, received in early June a bill from BP for just over $272 million for part of the spill expenses, according to an invoice provided by the subcommittee.
Mitsui, which holds 10% of the Macondo development, was billed around $111 million. Also that month, Anadarko’s Mr. Hackett called the oil spill in the Gulf of Mexico “preventable and the direct result of BP’s reckless decision and actions,” allegations that BP rejected.
Anadarko has said its operating agreement with BP for development of the Macondo well contains a clause that could limit Anadarko’s liability if misconduct or gross negligence of the operator, BP, is proved.
Write to Isabel Ordonez at Isabel.ordonez@dowjones.com



