NEW YORK, June 1 (Reuters) - Stock and bonds of Transocean Ltd, (RIG.N) (RIGN.S) owner of the drilling rig that caused a massive oil well disaster in the Gulf of Mexico, may offer investor value, CreditSights said in a report.
Shares and bonds of BP (BP.L), the energy giant that hired the rig, weakened on Tuesday as markets reacted to the failure of the energy giant’s latest effort to contain the worst oil spill in U.S. history. For details, click [ID:nN01262229]
BP fell close to 17 percent in London trading, wiping $23 billion off its market value, on news over the weekend that its latest attempt to plug its blown-out seabed well had not worked, sparking fears oil could leak into the Gulf until August.
CreditSights said that a relief well may take until early August to complete, which may make the disaster the largest global oil spill in history.
“We continue to monitor the situation carefully with the expectation that the well will not be fully controlled until a relief well can be successfully completed,” CreditSights said. “We believe risk-tolerant investors can find value in RIG stock and bonds at recently lower levels.”
CreditSights said that Transocean management believes it has “ample liquidity to cover its cash uses even in a worst case scenario under an extended drilling moratorium in the (Gulf of Mexico) and we concur based on all available information at this time,” CreditSights said.
CreditSights last month also said BP, Halliburton and Transocean Ltd could withstand the mounting clean-up costs, litigation and penalties on the horizon.
Reporting by Walden Siew, Editing by Chizu Nomiyama