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Archive for September, 2010

While BP has established a $20 billion damage fund that is being administered by the Federal government, PTTEP, the party responsible for the Montara blowout in the Timor Sea, is taking a different approach.  PTTEP has denied all claims from the Indonesian government arguing that oil spill damages were limited to the immediate vicinity of the Montara field.  However, information presented at the Montara hearings indicates that the slick extended into Indonesian waters.

PTTEP Australia (PTTEP AA), a subsidiary of the Thai-listed PTT Exploration and Production Public Company Limited today (2 September 2010) confirmed the Government of Indonesia that it has not accepted any claims for compensation relating to the claimed impacts of oil released from the company’s Montara field in the Timor Sea last year.

What if PTTEP was the operator at Macondo?

PTTEP news release

Upstream report on the claim

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Click for an excellent summary of what may have gone wrong at Macondo and what can be done to prevent future incidents.

While there are no new details on the causes of the blowout, available information on the possible contributing factors is nicely summarized.  The presentation also includes a very good summary of risk management considerations.

Barriers against accidents are not only technical and operational and “physical” but are also non-physical built around strategic and organizational measures and decisions

During the Montara hearings and later in Macondo discussions, we raised concerns about the timing of the production casing pressure test. This issue has not received enough attention in our view, possibly because most of the Macondo focus has been on annulus flow and barriers.  It was good to see this comment in the presentation:

Pressure tested well far too early – could have blown out cement of shoe track

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Some readers have suggested links and information on the official US investigations of the Macondo blowout.  Some basic information is provided below.  The links will be added to the blogroll in the right column.

We will be examining the relevant facts and circumstances concerning the root causes of the Deepwater Horizon explosion and developing options to guard against, and mitigate the impact of, any oil spills associated with offshore drilling in the future.  This may include recommending improvements to federal laws, regulations, and industry practices.

Joint BOMRE – Coast Guard Investigation

The purpose of this joint investigation is to develop conclusions and recommendations as they relate to the Deepwater Horizon Mobile Offshore Drilling Unit (MODU) explosion and loss of life on April 20, 2010. The facts collected at this hearing, along with the lead investigators’ conclusions and recommendations will be forwarded to Coast Guard Headquarters and Minerals Management Service (MMS) for approval. Once approved, the final investigative report will be made available to the public and the media. No analysis or conclusions will be presented during the hearing.

This study will address the performance of technologies and practices involved in the probable causes of the Macondo well blowout and explosion on the Deepwater Horizon. It will also identify and recommend available technology, industry best practices, best available standards, and other measures in use around the world in deepwater exploratory drilling and well completion to avoid future occurrence of such events.

The CSB intends to proceed with an investigation of the root causes of the accidental chemical release that destroyed the Deepwater Horizon rig and took the lives of 11 workers. The investigation will include the key investigators who were involved in the CSB’s 2005-2007 investigation of the March 23, 2005, explosion at the BP Texas City refinery.

Various congressional committees are also reviewing issues associated with the blowout, most notably the Senate Committee on Energy and Natural Resources and the House Committee on Energy and Commerce.  As time permits, BOE will post updates on post-Macondo legislative actions.

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