Owner of sunken oil rig to try to limit liability to $27 million

Transocean tries to limit liability for sunken rig

NEW YORK — The owner of the rig that exploded in the Gulf of Mexico and set off a massive oil spill will try to limit its liability to about $27 million.

A spokesman for Transocean Ltd. says a company petition will cite an 1851 law that says the owner of a sunken vessel is liable only for its value after the accident.

Transocean has said it expects to receive $560 million in insurance money from the loss of the rig.

If successful, the liability limit would cap the amount that Transocean would be forced to pay if it loses any of the numerous lawsuits related to the Deepwater Horizon explosion.

Transocean plans to file its petition in U.S. District Court in Houston.