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Archive for the ‘well control incidents’ Category

From Platts Oilgram News (3 February 2011):

Mitsui affiliate MOEX Offshore has received invoices from BP seeking $2.64 billion in reimbursement related to the Macondo oil spill in the US Gulf of Mexico, Mitsui said February 2.

A wise attorney (not an oxymoron :)) recently mentioned that you had to be very careful about ventures that you are buying into (as a partner) or selling into (as a contractor or manufacturer). If something horrible happens, your company’s economic future could be jeopardized, even if your role was rather small.

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Australian Department of Resources, Energy, and Tourism

The Independent Review concluded that the Montara Action Plan effectively responds to the issues identified by the Montara Commission of Inquiry and sets PTTEP Australasia on the path to achieving industry best practice standards for both good oil field practice and good governance.

Comments:

  1. Perhaps the results of the “Independent Review” should have been released before PTTEP announced that it was moving ahead with development of the Montara field.
  2. Macondo was a model operation compared to Montara which was suspended for months with only a flawed casing shoe and a corrosion cap as barriers. When well activities resumed after the suspension, and the corrosion cap was removed, they could have tied back the 13 3/8″ casing and installed the BOP stack, but instead moved to another well so they could optimize efficiency. When the well began to flow, there was no means of even attempting to shut it in or install a surface cap.
  3. PTTEP has not been fined or penalized in any way by the Australian government. I wonder how Commissioner Borthwick and the folks who participated in the Montara Inquiry, which did an admirable job and was very critical of PTTEP, feel about that.

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The Government is ordered to pay legal fees for Hornbeck Offshore Services and several other companies that sued over the moratorium.

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Link to letter

The Louisiana coastal parishes are united in working with each other and with you to see the drilling process expedited as quickly as possible.  It is imperative to our collective economies that we move forward with the process of providing the energy that moves our nation.

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A little bit of information on the BOP “forensic” testing from the Louisiana Record:

Justice Department attorney Michael Underhill said that a forensic report on the failed blowout preventor (BOP) which led to the Deepwater Horizon explosion and subsequent Gulf of Mexico oil spill should be finished in March.  Underhill spoke at a status conference for the BP multidistrict litigation in Judge Carl Barbier’s chambers at U.S. District Court for the Eastern District of Louisiana.

Barbier expressed concern over reports that the testing for the BOP and the cement used in drilling the Deepwater Horizon was falling behind. Underhill stated that the testing on the BOP should be done by the first week of March, but that’s “not a promise.” Underhill stated that the BOP investigation has already cost millions of dollars and has involved laser scanning all the equipment removed from the device. He also said that the forensic report on the BOP should be done by the end of March.

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While thunder-snow created a surreal setting outside, the scene was rather predictable inside as the National Commission co-chairs testified before the House Natural Resource Committee.  Members acknowledged the Commission’s service, questioned qualifications, expressed frustration with the “permitorium,” raised concerns about our economic and energy future, and disputed the conclusion that “systemic industry failures” contributed to the disaster.  Others suggested that Macondo safety issues had not been resolved, that the risks associated with offshore drilling were not being managed properly, and that everyone else in the world regulates offshore operations more effectively than the US (or at least their disasters have been less recent).

Putting all that aside, I was pleased by the interest of the members in the BOP failure. They seem to share our frustration with the delays in the BOP examination/testing/forensics/autopsy. Perhaps the Committee can determine the status of this very important aspect of the investigation, and provide a summary of what has happened since the stack was recovered and what work remains to be accomplished. That would seem to be a reasonable request.

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Good news first:

Scientists at the Woods Hole Oceanographic Institution in Massachusetts found circumstantial evidence that the chemicals guided some oil into underwater currents, stopping it from bubbling up to the surface, where it would do more damage, said marine chemist Elizabeth Kujawinski.

Now the bad:

But she added, “the dispersant is sticking around,” which is worrisome. The chemicals didn’t seem to biodegrade the oil and gas as fast as basic chemistry would predict.

See the AP article recommended by BOE oil spill guru Cheryl Anderson.

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Bob Graham and William Reilly will testify.

Schedule (Eastern Time):

0930 – Senate Energy and Natural Resources Committee – live streaming

1400 – House Natural Resources Committee – broadcast live on C-SPAN3

The questioning should be pretty lively, especially at the House hearing.

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1. Helix has inked 19 Gulf of Mexico customers for its Deepwater Containment System. What will happen to the Marine Well Containment Company which was announced with much fanfare in July? Does it make sense to have two such consortiums operating in the Gulf?

2. No new reports on the Apache gas leak in the press or on the company’s website.  More transparency is needed in the post-Macondo era.

3. The Deepwater Horizon BOP testing remains a mystery. If you disregard the erroneous January 5th and 6th updates (which pertain to hearings held last summer), the official investigation website has not been updated since before Christmas. Given the importance of this work, the absence of status updates is disappointing.

4. Useful listing of deepwater Gulf projects in Offshore magazine.

5. The National Commission Chairs will appear before the Senate Energy and Natural Resources Committee tomorrow.  The hearing will be webcast live beginning at 0930. Here is some pre-hearing chatter.

6. The Aban Pearl semisubmersible drilling rig sunk offshore Venezuela last May.  Will the world ever find out what happened? In fairness to Venezuela, they aren’t the only ones sitting on reports.

7. “The oil spill [has] definitely [been] blown out of proportion.” Judith McDowell is a highly respected scientist. If this is an accurate quote, it is quite significant.

8. Transocean wants to pay dividend.

9. Interested in serving on DOI’s Safety Committee?

10. A great painting completes the list!

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Montara Blowout - Timor Sea

SapuraAcergy’s scope under the contract involves the engineering, procurement, load out, transportation and construction activities for the removal and disposal of the existing topside and the transportation and installation of new pipelines, risers, umbilicals, spools, manifolds, FPSO mooring systems and a new replacement topside, all of which to be undertaken at PTTEPAA’s Montara Development Project in water depths of approximately 80 metres. Dow Jones

The work will be performed in 2011.

Comment: What about the Australian government’s commitment to review PTTEP’s license?

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