Deepwater Horizon flew foreign flag in America’s backyard

Senator Charles Grassley (IA) has fired off a letter to BP asking a series of questions regarding whether the Marshall Islands registry of the Deepwater Horizon platform allowed the company to skirt safety laws.

It’s a fact that even many U.S. shipping lines fly the Marshall Islands flag to get around Jones Act compliance. For a foreign entity like BP to do so 50 miles off the coast has drawn the attention of Grassley and others on the Hill.

Some of the questions he’s asked include:

Does the foreign registry allow BP to avoid “rigorous oversight”? How does it bear upon taxes, safety inspections and royalty payments?  What are other benefits or negatives for flying a foreign flag?

Grassley has sent a similar letter to Transocean. Read both letters here.