Opinion ID: 2831456
Heading Depth: 1
Heading Rank: 1

Heading: The Drilling Contract

Text: In the drilling contract,2 BP and Transocean agreed that Transocean would maintain certain specified types of insurance. Part of the agreement was that the insurance requirements would not limit the liability of Transocean’s insurer: 20.1 INSURANCE 1 Multiple insurance policies are involved. For ease of reference and for the reasons expressed by the Court, I will do as the Court does and reference all the policies by the term “the policy” and all the insurers as “the insurers.” The policies were effective from May 1, 2009 to May 1, 2010; the Deepwater Horizon exploded and sank in April 2010. 2 The drilling contract between BP and Transocean was dated December 9, 1998, and was executed by their predecessors in interest. Without limiting the indemnity obligation or liability of [Transocean] or its insurer, at all times during the term of this CONTRACT, [Transocean] shall maintain insurance covering the operations to be performed under this CONTRACT as set forth in Exhibit C. (emphasis added) Exhibit C to the drilling contract, which is referenced in paragraph 20.1, lists nine different types of insurance. One type is Comprehensive General Liability Insurance, including—but notably not limiting coverage to—coverage for Transocean’s contractual indemnity: [1.]c. Comprehensive General Liability Insurance, including contractual liability insuring the indemnity agreement as set forth in the Contract and productscompleted operations coverage . . . . (emphasis added) A separate paragraph in Exhibit C provides that 3. [BP], its subsidiaries and affiliated companies . . . shall be named as additional insureds in each of [Transocean’s] policies, except Worker’s Compensation for liabilities assumed by [Transocean] under the terms of this Contract.