Transocean Says Insurance Covers $560 Million Oil Rig Loss

Transocean Ltd. said Monday its insurance covers the total loss of the Deepwater Horizon oil platform and wreck removal after the rig that burned and sank off the Louisiana coast last week.

Wreck removal coverage was only to the extent that it could be carried out and was needed, Transocean said, adding that the rig — with an insured value of $560 million — was about 1,500 feet northwest of the well and away from any subsea pipelines.

“Transocean is committing all necessary resources to support ongoing efforts to stop the flow of hydrocarbons from the well,” the Switzerland-based company said in a statement.

The well being drilled for BP Plc began spewing oil after the rig sank last week.

(Reporting by Braden Reddall; editing by Carol Bishopric)