Showing posts with label Gulf. Show all posts
Showing posts with label Gulf. Show all posts

Saturday, November 20, 2010

BP's broken well in Gulf of Mexico is 'dead'

WASHINGTON – US officials have finally declared BP's broken well in the Gulf of Mexico "dead", five months after a deadly oil rig explosion set off one of the costliest and largest environmental disasters ever.

Although the troublesome well may have been killed once and for all, BP still faces a long uphill battle to clean up the Gulf, a litany of lawsuits, billions of dollars in fines and shareholders angered by the firm's instability after its share price more than halved.

Retired admiral Thad Allen, the US pointman for the government's response to the disaster, said the operation to intersect and cement the deepwater well had been successfully completed.

"With this development, which has been confirmed by the Department of the Interior's Bureau of Ocean Energy Management, we can finally announce that the Macondo 252 well is effectively dead," Allen said.

"Additional regulatory steps will be undertaken but we can now state, definitively, that the Macondo well poses no continuing threat to the Gulf of Mexico."

The announcement marked an anti-climactic end to a five-month battle to cap a busted undersea well that gushed nearly five million barrels (210 million gallons) of oil into the Gulf, the largest maritime spill in history.

No oil has leaked into the Gulf in the three months since the well off the Louisiana coast was plugged in a so-called "top kill" operation, but the US administration insisted that it also be sealed from the bottom with a relief well.

A final pressure test of the cement seal was completed at 5:54 am (1054 GMT), officials said.

"Today, we achieved an important milestone in our response to the BP oil spill -- the final termination of the damaged well that sat deep under the Gulf of Mexico," President Barack Obama said in a statement.

Obama said there was now a diminished need for the massive response to the spill, but "we also remain committed to doing everything possible to make sure the Gulf Coast recovers fully from this disaster."

He vowed to "see our communities, our businesses and our fragile ecosystems through this difficult time."

BP pledged to continue "remedying the harm that the spill caused to the Gulf of Mexico, the Gulf Coast environment and to the livelihoods of the people across the region."

The disaster was triggered by an explosion on the Deepwater Horizon rig -- leased by BP and operated by Transocean Energy -- that killed 11 workers on April 20.

The accident broke pipelines between the rig and the ocean floor, spewing massive amounts of oil into Gulf waters, exposing the oil- and wildlife-rich region's vulnerability to deep sea drilling.

For weeks, every effort to plug the well 5,000 feet (1,500 meters) below the surface of the sea fell short as the spreading oil fouled hundreds of miles of shoreline, closed fishing grounds and threatened fragile ecosystems.

The Obama administration also imposed a moratorium on deepwater drilling, setting back another mainstay of the Gulf economy while the cause of the disaster was under investigation.

Eighty-seven days into the crisis, BP finally succeeded in placing a giant cap over the well that stopped the flow of oil.

But the costs were huge, with local livelihoods disrupted and nearly 70 billion dollars wiped off BP's market value.

BP, whose chief executive Tony Hayward was forced to resign, has spent eight billion dollars trying to contain the disaster and has forecast it will eventually cost the energy giant more than 32.2 billion dollars.

"Although the well is now dead, we remain committed to continue aggressive efforts to clean up any additional oil we may see going forward," Allen said.

Multiple investigations into the disaster are still under way and official responsibility has yet to determined. An internal BP investigation laid some of the blame on its contractors.

BP America's CEO Lamar McKay sought to put a positive spin on the lessons his company has learned from the disaster, saying they would be shared to prevent a repeat in the future.

 

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Friday, November 19, 2010

BP to conduct test to show if Gulf well dead

HOUSTON - BP Plc has conducted a pressure test on its ruptured Gulf of Mexico oil well to make sure that cement pumped into the bottom killed it for good, the company said.

The test is the last step toward declaring the well dead and closing the seabed chapter of the worst oil spill in US history. The disaster began nearly five months ago with a blowout and explosion that killed 11 men and sank a drilling rig. No announcement declaring the well dead is expected until Sunday.

BP faces years of litigation, multiple investigations and the daunting job of repairing its tattered image in the United States, where the London-based oil giant conducts 40 percent of its business. That includes the Gulf, where BP is the largest producer.

The blown-out Macondo well spewed more than 4 million barrels of oil into the Gulf before BP sealed it shut with a cap on the wellhead on July 15. The spill damaged coastlines along the US Gulf Coast, killing wildlife and hurting the livelihood of fishermen and others.

BP pumped cement into the well from the top on Aug. 5. Repeating that procedure at the bottom through a relief well has long been considered the final assurance the well is dead.

The relief well intercepted the Macondo well late on Thursday near its bottom about 13,000 feet (4,000 meters) beneath the seabed. On Friday, BP pumped in cement for seven hours and waited for it to finish curing on Saturday before conducting the final test.

Retired Coast Guard Admiral Thad Allen said last week that if the test showed the reservoir was completely sealed off from the well and no oil could flow upward, he would declare the Macondo well dead.

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Wednesday, October 6, 2010

BP says oil spill costs hit $8 bln

BP

LONDON – British oil giant BP said Friday that the devastating Gulf of Mexico oil spill disaster has cost about US$8 billion so far.

"The cost of the response to date amounts to approximately eight billion, including the cost of the spill response, containment, relief well drilling, static kill and cementing, grants to the Gulf states, claims paid and federal costs," BP said in a statement.

The April 20 spill was triggered when an explosion ripped through the Deepwater Horizon rig in the Gulf of Mexico, killing 11 workers and sinking the huge offshore platform two days later. The flow of oil into the sea was not fully stemmed until July 15.

BP has forecast that the worst environmental catastrophe in US history will cost the group a total of about 32.2 billion dollars, after pushing the group into a record 16.9-billion-dollar loss in the second quarter.

The company repeated on Friday that it had agreed in June to set up a 20-billion-dollar compensation fund for residents affected by the spill.

BP added that operations were underway to replace the Deepwater Horizon's damaged blowout preventer (BOP) -- a large piece of equipment that failed to stop the disaster.

On Thursday, the group had removed the massive cap which had stemmed the flow of oil from its ruptured well deep in the Gulf of Mexico in a key step toward killing the well once and for all, officials said.

The damaged BOP will be raised to the surface to be examined and held as evidence in an official investigation, following the removal of the cap.

The ruptured Macondo well was plugged with heavy drilling fluid and then sealed it with cement last month, but the so-called "bottom kill" operation to permanently seal the well was delayed until the blowout preventer is replaced.

The "bottom kill" involves intercepting the crippled well with a relief well, which then pumps heavy drilling oil and cement into the oil well to permanently plug it.

BP said Friday that the replacement of the blowout preventer will "allow operations to complete the relief well to resume".

The company hopes that the relief well will reach the damaged well by around mid-September, depending on weather conditions.

In early morning trade on Friday, the company's shares rose 0.51 percent to 394.60 pence.

However, BP's share price has collapsed as a result of the disaster, shedding about 40 percent in value since the explosion on April 20.

The catastrophe also sparked the resignation of BP chief executive Tony Hayward in July

Hayward was forced out following a string of gaffes as the public face of the firm in its battle to stop oil leaking into the Gulf of Mexico.

 

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