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Archive for the ‘well control incidents’ Category

From the Australia Resources Minister’s Press Conference on 4 February in Canberra (click for the full transcript):

I might also say that I was in the United States last week and these issues were clearly top of mind in my discussions in Washington (l didn’t know he was here and have seen no US coverage of these meetings.)

I reinforced my previous commitment to work closely with the United States in terms of the consideration of the outstanding recommendations of the Macondo report and our determination to put in place a single national regulator in Australia

Discussions were also held with the companies and the US administration about an international conference we will hold in Western Australia in August of this year, focusing on the recommendations of the Macondo and Montara reports. That conference will be highly technical in nature.

It will in my opinion be a very important regulatory conference because it’s about basically having a look at where we are, what national and international responses can be coordinated, any specifications that might have to be changed so that we get a uniform approach to industry practice and the nature of equipment used. (Is the Minister unaware of the Vancouver conference and the ongoing work among regulators?)

(On the report about the Varanus Island explosion) Firstly I’d love to get my hands on it because I want to fully assess it. But I can’t get access to it at the moment because the WA government has determined it would be inappropriate to release it because it may impinge on potential legal proceedings.


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From today’s Platts Oilgram News:

Offshore drilling giant Transocean expects to release its internal investigative report next month on last year’s Macondo disaster in the Gulf of Mexico as the first of several milestones toward resolving liability issues, Transocean CEO Steven Newman said February 8.

The BOP section of TO’s report should be very interesting.

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Montara Blowout - Timor Sea

Link

PTTEP will have to report monthly and meet quarterly with Mr Ferguson under a binding agreement for the next 18 months.

Comment: That “penalty” is almost comical. What is the next level of punishment – weekly meetings with Ferguson? Also, shouldn’t the Minister let the regulator oversee PTTEP? Shouldn’t the Minister receive such reports and briefings from the regulator?

There is no disincentive, there’s no penalties. That’s what I think many Australians will be scratching their heads about. Paul Gamblin, WWF WA Director

Comment: I have to agree with the World Wildlife Federation. As one who has been following Monatara since the blowout was first reported and has read every page of the submissions and testimony, it seems inconceivable that PTTEP is able to continue its operations with no apparent penalty.

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This cartoon reminded BOE sage Odd Finnestad of the Deepwater Horizon BOP “forensics” testing.

While the BOP testing is now in its 4th month with no official updates and no information on the badly neglected investigation website (where items from last August are listed as the “latest news”), there is online video evidence that gives us good clues about what happened.  However, this is partial evidence, and concerned operators, contractors, and regulators need complete information. While we wait, wells are being drilled around the world without the benefit of even preliminary findings.

When a plane crashes, information is released as soon as possible so that future accidents can be prevented.  Why is that not the case with this investigation? The absence of urgency and transparency is most disappointing.

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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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