NEW ORLEANS — A federal appeals court has withdrawn its earlier ruling that BP is entitled to a portion of $750 million in coverage under a contractor’s insurance policies to help the London-based oil giant pay for costs associated with its massive 2010 oil spill in the Gulf of Mexico.
A three-judge panel of the 5th U.S. Circuit Court of Appeals yesterday substituted its previous opinion in March with two questions for the Texas Supreme Court to answer. The panel said the policy factors at issue in the case are better gauged by the state high court than by a federal court.
BP leased the drilling rig that exploded in the Gulf from Transocean Ltd. and had a contract requiring the Swiss-based drilling company to maintain minimum insurance coverages for BP’s benefit.