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Posts Tagged ‘Gulf of Mexico’

link: Investigation of May 15, 2021, Fatality, Eugene Island Area Block 158 #14 Platform

Firstly, taking 2.5 years to publish an investigation report is unacceptable for an organization with BSEE’s talent, resources, and safety mandate. Unfortunately, such delays now seem to be the rule as the summary table (below) for the last 4 panel reports demonstrates. The most recent report implies that the actual investigation was completed in 2-3 months. Why were another 2+ years needed to publish the report? (Note that the lengthy and complex National Commission, BOEMRE, Chief Counsel, and NAE reports on the Macondo blowout were published 6 to to 17 months after the well was shut-in.)

incident datereport dateelapsed time (months)incident type
5/15/202110/31/202329.5fatality
1/24/20217/24/202330fatality
8/23/20202/15/202330fatality
7/25/20202/15/202331spill
Four most recent BSEE panel reports

The subject (May 2021) fatality occurred during a casing integrity pressure test, and some of the risk factors were familiar:

  • The operator, Fieldwood Energy, was facing bankruptcy, and had a poor performance record.
  • The platform was installed 52 years prior to the incident, and had been shut-in for more than a year.
  • The well of concern (#27) was drilled in 1970, sidetracked in 1995, and last produced in February 2013.
  • Diagnostic tests clearly demonstrated communication between the tubing, production casing, and surface casing.

In light of the known well integrity issues and the absence of production for more than 8 years, the prudent action would have been to plug and abandon the well in a timely manner. However, under 30 CFR 250.526 as interpreted at the time, Fieldwood had another option – submit a casing pressure request to BSEE to confirm the integrity of the outermost 16″ casing and (per p. 10 of the report) “continue to operate the well in its existing condition.” Given that the well had not produced for 8 years and that the platform had been shut-in for more than a year, the option to continue operating the well should not have been applicable.

The only issue for Fieldwood to resolve with the regulator should have been the timing of the plugging operation. Additional well diagnostics would only serve to create new risks and further delay the well’s abandonment.

The resulting pressure test of the outermost (16″) casing was solely for the purpose of confirming a second well bore barrier. Per the report (p.10), there is a “known frequency of outermost casings in the GOM experiencing a loss of integrity as a result of corrosion.” Whether or not the 16″ casing passed the test, the inactive well had clear integrity issues and should have been plugged.

Fieldwood proceeded with the pressure test rather than correcting the problem. The regulations, as interpreted, thus facilitated the unsafe actions that followed. These factors heightened the operational risks:

  • Extensive scaffolding and a standby boat were needed for the test.
  • Process gas via temporary test equipment was used to conduct the test.
  • The Field-Person In Charge (PIC) heard about the test for the first time on the morning of the incident.
  • The PIC and victim had no procedures to follow, and had to figure out how to conduct the test on the fly.
  • A high pressure hose was connected without a pressure regulator or pressure safety valve.
  • The digital pressure gauge had two measurement modes, one to display pressure in psi and the other in bars. (One bar is equivalent to 14.5 psi. Assuming that the readings were in psi rather than bars would thus result in serious overpressure of the casing.)

Seconds after the victim told the field-PIC the pressure was 175 psi (presumably 175 bar and 2538 psi), the casing ruptured. The force of the explosion propelled the victim into the handrail approximately 4 feet away, which bent from the impact. The victim’s hardhat was projected 60 to 80 feet upwards, lodging into the piping.

The investigation report fails to address the wisdom of conducting the pressure test and the regulatory weaknesses that enabled Fieldwood to defer safety critical well plugging operations. The pressure test option in 30 CFR § 250.526, was not intended for long out-of-service wells with demonstrated well integrity issues. The only acceptable option was corrective action (plugging the well) without further delay. The pressure test option added risks without addressing the fundamental problem and helped enable the operator to further delay decommissioning obligations.

The report also fails to address the lease administration practices that enabled a problem operator to expand their lease holdings. Indeed, BOEM’s inexplicable proposal to eliminate a company’s performance record in determining the need for supplemental bonding would exacerbate the risk of more such incidents. (See these comments on the BOEM proposal).

Postscript: According to BOEM data, the lease where the fatal incident occurred expired on 7/31/2021. Per the BSEE Borehole and structures files, neither the platform (#14) nor any of the other 4 structures remaining on the lease have been removed, and the well (#27) has yet to be plugged.

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BSEE’s Facility Infrastructure Dashboard is a useful tool for tracking decommissioning activity in the Gulf of Mexico. A few numbers from the dashboard:

  • Current structure count:1438 (Per BSEE’s platform structures online query, the number of non-removed structures is 1554. The reason for the discrepancy is unclear; perhaps the dashboard number is more current.)
  • Structures with decom application submittal: 291
  • Total structures on terminated leases: 318
  • Structures on terminated leases with decom application submittal: 196

Planned disposition of the 291 pending removals (25% of the structures to be reefed):

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Karoon Energy, an Australian company, has entered the Gulf of Mexico in a big way by acquiring an interest in the Who Dat field (winner of BOE’s best field name award!) from LLOG. For more information on the acquisition, see Karoon’s slide at the end of this post. The full presentation is here.

To learn more about the cultural importance of ‘Who Dat,’ see the youtube clip below, or read this article. For more in-depth ‘Who dat’ history, this wiki page is quite good.

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An excellent compliance and incident update by Jason Mathews is attached. BSEE’s focus on risk assessment, compliance and incident trends, high potential near-misses, medivac capabilities, hot work safety, lifting operations, and gas releases is encouraging. Good work by the folks in BSEE’s Gulf of Mexico Region.

Observations:

  • Zero 2023 occupational fatalities through Q3. Hoping this holds through the end of the year and beyond.
  • INCs/component are down but INCs/inspection are slightly higher. This may imply a relative increase in the inspection of high component deepwater facilities.
  • No. of hours worked is increasing; good sign for the offshore program.
  • Hand and finger injuries are driving up the injury count.
  • Well control incidents are stable at a low level.
  • Improved fire data help facilitate risk assessments
  • No YTD explosions
  • No. of collisions is down
  • 10 YTD spills> 1 barrel (total volume not specified)
  • Some evidence of decline in lifting incidents in Q2 and Q3
  • Gas releases are up (aging facilities, decommissioning related?)

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  • Location: Spotted Thursday morning 19 miles east of the mouth of Main Pass; slick moved southwest on Friday, toward the mouth of South Pass
  • Operator: Main Pass Oil Gathering, a subsidiary of the Houston oil company Third Coast.
  • Volume transported: 80,000 bopd
  • Age: Pipeline was completed in Aug. 2022
  • Spill size based on slick estimate: 291 bbls

The cause of the spill is unknown at this time. External damage (perhaps anchor dragging or vessel contact with exposed section) is a good bet.

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As a result of the order issued by the United States Court of Appeals for the Fifth Circuit on Nov. 14, 2023, the Bureau of Ocean Energy Management (BOEM) has scheduled Lease Sale 261 for Dec. 20, 2023.

The Gulf of Mexico oil and gas lease sale was originally scheduled for Sept. 27, 2023, and later scheduled for Nov. 8, 2023, in response to judicial orders.

Pursuant to direction from the Court, BOEM will include lease blocks that were previously excluded due to concerns regarding potential impacts to the Rice’s whale population in the Gulf of Mexico. BOEM will also remove portions of a related stipulation meant to address those potential impacts from the lease terms for any leases that may result from Lease Sale 261.

A Final Notice of Sale will be published in the Federal Register on Nov. 20, 2023, and will be available for public inspection on Nov. 17, 2023. 

BOEM will live stream the opening of bids at 9 am CDT on Dec. 20, 2023. All terms and conditions of the lease sale are listed in the FNOS. For more information, go to: www.boem.gov/sale-261.  

BOEM

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No tropical storm production shut-ins in 2023 YTD.

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I take it that since the 5th Circuit stayed both the 9/21 and 9/25 orders, the mandate to hold the sale by 11/8 is also stayed. Ergo, it is assumed that the sale will be delayed pending a decision on the merits of the injunction. Oral arguments are scheduled for 11/13.

If the 5th Circuit’s decision facilitates timely resolution of the Rice’s whale deletions and stipulations, delaying the sale is probably the best outcome. Otherwise, the level of uncertainty would be unacceptable for many bidders.

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“Stampede,” Gulf of Mexico: Hess 25% owner and operator, Chevron 25% owner
  • Most importantly, both companies have excellent safety and compliance records as evidenced by their Honor Roll achievements.
  • Hess is an attractive company with impressive assets. Were there other suitors?
  • Chevron is currently a partner on the Stampede, Esox, and Tubular Bells deepwater projects that are operated by Hess. There is thus an established deepwater development relationship.
  • The acquisition of Hess means that Exxon and Chevron will now be partners in Guyana. That should be interesting.
  • Chevron’s CEO Mike Wirth is quoted as saying “We’ve got too many CEOs per BOE, so consolidation is natural.” That comment seems a bit self-serving, but makes sense from the perspective of an acquiring CEO. Employees of the companies being acquired may have a somewhat different view.
  • In the Gulf of Mexico, will the combined company be greater than the sum of the parts in terms of lease acquisition, exploration, and development?
  • Will combining the companies limit the diversity of geological assessments and exploration strategies?
  • Consolidation affects participation in workshops and on committees engaged in assessing technology and developing standards. More limited participation in these activities, which are critical to offshore safety, was a justified concern of my former boss, the late Carolita Kallaur.
  • Add Hess to the list of important offshore operators that, for all intents and purposes, no longer exist. This list includes (among others): Amoco, Arco, Texaco, Getty, Gulf, Unocal, Sun, Anadarko, BHP, Mobil, Phillips (or Conoco), Noble Energy, Pennzoil, Kerr-McGee, and Newfield.

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Kosmos Energy announces deepwater GoM discovery. Oxy and Equinor are partners in this venture.

The Tiberius exploration well tested a four-way structural trap in the outboard Wilcox trend, located in Keathley Canyon Block 964. The well encountered approximately 250 feet (~75 meters) of net oil pay in the primary Wilcox target. Wireline logging has been completed and casing is currently being run to the target depth to enable the well to be used as a future oil producer. The Tiberius well is located in approximately 7,500 feet (2,300 meters) of water and was drilled to a total vertical depth of approximately 25,800 feet (7,800 meters).

BSEE data indicate that Kosmos has an excellent compliance record, having been cited for only 3 violations during 44 facility inspections (83 inspection types) since 1/1/2018.

Per the latest available BSEE summaries, Kosmos did not pay any civil penalties from 2019 through 2022.

One quibble: the Kosmos news release does not name the drilling unit or drilling contractor. The rig crew is the group most responsible for safely drilling the well.

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