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Showing posts with label The-Gulf-of-Mexico. Show all posts
Showing posts with label The-Gulf-of-Mexico. Show all posts

Friday, September 2, 2011

Halliburton Sues BP In Texas - Alleges Misrepresentation

- Halliburton Files Lawsuit Against BP

Friday, September 02, 2011
Halliburton Co.

On September 1, 2011, Halliburton filed claims against BP in Texas state court for negligent misrepresentation, business disparagement and defamation related to the April 20, 2010, Macondo incident. Halliburton has also moved to amend its claims against BP in the multi-district litigation in New Orleans, Louisiana, to include fraud.

These allegations are based upon BP providing Halliburton with inaccurate information prior to performing cementing services on April 19, 2010, and BP's use of and omission of that information in subsequent public statements, filings and governmental investigations.

Halliburton has learned that BP provided Halliburton inaccurate information about the actual location of hydrocarbon zones in the Macondo well. The actual location of the hydrocarbon zones is critical information required prior to performing cementing services and is necessary to achieve desired cement placement.

Halliburton remains confident that all the work it performed with respect to the Macondo well was completed in accordance with BP's specifications for its well construction plan and instructions, and that Halliburton is fully indemnified under the contract.


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Halliburton Sues BP In Texas - Alleges Misrepresentation

Friday, September 02, 2011
Dow Jones Newswires
by Melodie Warner

Halliburton filed a negligent misrepresentation, business disparagement and defamation lawsuit against BP in Texas state court related to the April 2010 Macondo explosion and oil spill in the Gulf of Mexico.

Halliburton has also moved to amend its multi-district litigation in New Orleans to include fraud claims against BP.

The oilfield-services company alleges BP provided Halliburton with inaccurate information--such as the actual location of hydrocarbon zones in the Macondo well--before cementing services began on April 19, 2010. Halliburton also claims BP has used and omitted that information in subsequent public statements, filings and governmental investigations.

"This lawsuit is the latest attempt by Halliburton to divert attention from its role in the Deepwater Horizon incident and its failure to meet its responsibilities," BP said in a statement. The energy giant said it has accepted responsibility for responding to the spill and is accordingly paying costs and compensation. BP "expects other parties to accept their responsibilities and bear their share of the costs," the statement said.

Last fall, BP released a report that largely faulted Transocean, the owner of the Deepwater Horizon drilling rig, and Halliburton for last year's disastrous Gulf of Mexico oil spill. While government investigations have generally assigned blame to both BP and its contractors, Transocean disclosed an internal investigation in June that focused almost entirely on decisions made by BP.

Halliburton said Friday it remains confident that all the work it performed was completed in accordance with BP's specifications, and that Halliburton is fully indemnified under the contract.

Shares of Halliburton were trading 2.8% lower at $41.83 moments after the opening bell.

Copyright (c) 2011 Dow Jones & Company, Inc.


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Monday, June 20, 2011

BP, Weatherford In Settlement on Deepwater Horizon

- BP, Weatherford In Settlement on Deepwater Horizon

Monday, June 20, 2011
Dow Jones Newswires
by Drew FitzGerald

BP on Monday reached a settlement with Weatherford's U.S. subsidiary that indemnifies the oil-services company from future Deepwater Horizon-related disaster claims.

Under the deal, Weatherford agreed to pay BP $75 million to spend on its Gulf Coast recovery fund. The entire cost of the settlement is being funded by insurance policies Weatherford had in place when the disaster happened.

The deal ties up another end in a web of litigation for companies that worked on the drilling rig, which exploded last year and caused one of the largest oil spills in U.S. history. Weatherford provided BP with products and services for the Macondo oil well, along with rig-owner Transocean and contractor Halliburton.

Under the latest agreement, BP indemnified Weatherford from all current and future environmental, pollution, personal, business, property and economic loss claims arising from the accident.

Separately, Transocean said Friday that insurers of its sunken rig have asked a federal judge to decide if BP and other owners of the doomed Macondo well are entitled to any coverage for the accident.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Wednesday, April 20, 2011

Deepwater Horizon Spurs Development of Spill Prevention Systems

Deepwater Horizon Spurs Development of Spill Prevention Systems

Wednesday, April 20, 2011
Rigzone Staff

The Deepwater Horizon oil spill disaster in April 2010 prompted the creation of oil spill response systems for use in the Gulf of Mexico and in the North Sea. Two oil spill prevention systems are now available for oil and gas producers in the Gulf of Mexico, and a well capping device is currently under construction in the UK that will be used as part of the UK oil and gas industry's oil spill response efforts.

Helix Well Containment Group

The Helix Well Containment Group (HWCG) plans to conduct a third tabletop exercise in late May to increase its members' coordination and preparedness for a subsea well containment incident. The group already has conducted two tabletop exercises this spring. The most recent exercise in late March brought together more than 225 technical professionals from the oil and gas industry.

HWCC has signed an agreement with Helix Energy Solutions Group, which will provide primary components of the well containment response system. The Helix Fast Response System (HFRS), which has been developed using Helix Energy Solutions Group assets that were deployed in the Deepwater Horizon incident, is expected to be fully operational for water depths of up to 10,000 feet by this summer.

Twenty-three deepwater Gulf operators comprise the HWCG consortium; these operators represent two-thirds of the deepwater operators in the Gulf of Mexico and approximately half of all deepwater oil and gas production in the Gulf. Members include Anadarko Petroleum Corp.; Apache Corp.; ATP Oil & Gas; BHP Billiton; Cobalt International Energy; Deep Gulf Energy; Eni; Energy Resource Technology GOM; Hess Corp.; LLOG Exploration Company; Marathon Oil Company; Marubeni Oil & Gas; Murphy Exploration & Production; Newfield Exploration Company; Nexen Petroleum; Noble Energy; Plains Exploration & Production; Repsol E&P USA; Statoil; Stone Energy; Walter Oil & Gas Corporation; Woodside Energy; and W&T Offshore.

Marine Well Containment Company

The Marine Well Containment Company (MWCC) in February launched its interim rapid response system to capture and contain oil from potential underwater well blowouts in the deepwater Gulf. The system can operate in up to 8,000 feet of water and process up to 60,000 b/d of fluid. Work is underway to expand the system to operate in up to 10,000 feet of water and process up to 100,000 b/d, with components to be delivered in 2012.

Capping Stack, Marine Well Containment Co.
Capping Stack, Marine Well Containment Co.
ExxonMobil, ConocoPhillips and Chevron announced the plan to build and develop the system last July; since then, BP, Anadarko Petroleum Corp., Apache Corp., BHP Billiton, Shell, Hess Corp. and Statoil have joined MWCC. These 10 companies operated approximately 70 percent of deepwater wells drilled in the U.S. Gulf of Mexico between 2007 through 2009. The non-profit, stand-alone organization is open to all companies operating in the U.S. Gulf of Mexico.


Cooperation, Encouragement of Innovation Needed

The private sector worked hand in glove with the U.S. Coast Guard's research and development division and U.S. Navy research centers to assess technology, particularly for surface containment applications, said Owen Kratz, Helix president and chief executive officer, while testifying before Congress on April 4. "The NOAA also had tremendous value to bring to bear," said Kratz. "We certainly encourage those government agencies to work closely with industry organizations like the HWCG and Marine Well Containment Corporation established by some of the major integrated oil companies."

Helix used the lessons it learned from its participation in containing the Deepwater Horizon oil spill to its approach to containment efforts in the future. While coordinating and idea sharing is very important to making advances, Kratz noted that the U.S. government can assist the industry by minimizing the cost of capital by reinvigorating programs specifically designed to advance maritime industrial development. A familiar program of this type is the U.S. Maritime Administration (MARAD)'s loan guarantee program. Kratz said MARAD could help responsibly and within fiscal constraints, and has a "proven track record for bringing innovative vessel designs to market.

"As we have seen, the most innovative vessel designs will be the most useful going forward," Kratz said. The Q4000, built in Texas with MARAD financing, provides an excellent example, and was instrumental in bringing the Macondo blowout under control, Kratz said.

The Q4000 Drilling Platform
The Q4000 Drilling Platform
Having a diverse array of players in upstream oil and gas has allowed for technological innovation. "When the government fails to respond appropriately to permitting concerns or creates significant doubt which undermines business confidence, it saps potential investment capital necessary to innovate," Kratz said.

UK Well Capping Device

Energy industry association Oil & Gas UK in March confirmed that construction of a well capping device was underway at Cameron Ltd., in Leeds, UK. The capping device will become a key element of the UK offshore oil and gas industry's oil spill response contingency plans. Completion of the device is due this summer.

The cap is modular in design, with specifications that allow it to be deployed in the widest range of possible oil spill scenarios that could typically be encountered in the UK Continental shelf including west of Shetland.

The device has an overall working pressure rating of 15,000 psi, and is capable of capping a well flowing up to 75,000 b/d and in water depths of up to 5,500 feet. Capping should be achieved within 20-30 days of the incident, depending on weather and well site conditions.

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Deepwater Horizon: One Year Later

Deepwater Horizon: One Year Later

Wednesday, April 20, 2011
Rigzone Staff
by Jaime Kammerzell

A year ago today, an explosion on Transocean's Deepwater Horizon ultra-deepwater semisubmersible, positioned at the Macondo Prospect in Mississippi Canyon Block 252, in the Gulf of Mexico, took the lives of 11 men and caused the largest marine oil spill in history.

At 9:45 p.m. on April 20, 2010, while plugging the well for later production, seawater erupted from the marine riser onto the rig, shooting 240 ft into the air. A combination of mud, methane gas, and water quickly followed. The gas then ignited, causing explosions onboard. Attempts to activate the blowout preventer failed. Survivors said they had less than five minutes to escape after the alarm went off. Multiple ships attempted to put out the fire, but it could not be extinguished. After burning for 36 hours, the Deepwater Horizon sank in about 5,000 ft of water on April 22, 2010.
A total of 126 people were onboard the Deepwater Horizon at the time of the explosion. Only 115 evacuated. Those who were able to escape took lifeboats to the M/V Damon B Bankston workboat nearby, which had been servicing the Deepwater Horizon. The US Coast Guard searched for three days.

Although BP was the operator of the Mocondo field, it was working with Transocean and Halliburton to plug the well for later completion as a subsea producer. BP believes that Transocean and Halliburton share the blame for the disaster.

According to Transocean, its employees had been performing routine work and did not notice any problems leading up to the explosion. Halliburton had finished running production casing and cementing 20 hours before the blowout. Transocean's CEO, Steven Newman, pointed his finger at Halliburton when he said, "there was a sudden, catastrophic failure of the cement, the casing or both."
Deepwater Horizon Sinks Offshore Louisiana
When the semisubmersible sank, it left the well gushing oil out of the riser into the Gulf of Mexico. The resulting oil slick covered about 28,958 sq mi and reached beaches in Louisiana, Mississippi, Alabama and Florida by June 9th, when BP reported that it had lost more than $82 billion, close to half its value.

BP began drilling two relief wells on May 2 and May 16. In an attempt to stop the oil spill sooner, BP also tried using remotely operated underwater vehicles to close the BOP valves on the well head. This failed. BP then tried to place a 125 tonne containment dome over the largest leak to pipe oil to a storage vessel on the surface, but this attempt failed when gas leaked from the pipe and mixed with the cold water, which formed methane hydrate crystals that blocked the opening at the top of the dome. Pumping heavy drilling fluids into the BOP to restrict oil flow and permanently seal it with cement failed as well.

BP then tried positioning a riser insertion tube into the burst pipe. This worked adequately until the damaged riser could be capped on June 3rd. A washer plugged the end of the riser and diverted it to the insertion tube. Gas was flared and oil was stored on board the Discoverer Enterprise drillship. But this solution didn't last long. A second containment system, which connected directly to the BOP, was installed on June 16. The oil and gas were diverted to the Q4000 service vessel where it was burned. This worked well, so the Discoverer Clear Leader drillship and Helix Producer I FPSO joined in the effort, offloading oil to the Evi Knutsen and Juanita tankers. Two more vessels, the Seillean FPSO and Toisa Pices well testing vessels processed oil and offloaded to the Loch Rannoch shuttle tanker.

BP was pleased with this solution and announced on July 5, 2010, that it was recovering about 25,000 b/d and flaring 57.1 Mcf/d. However, the government estimated that the cap only captured about half of the leaking oil. BP made further adjustments to its cap solution and replaced the original cap on July 10 with a Flange Transition Spool and a 3 Ram Stack. On July 15, BP tested its new and improved cap by shutting off pipes that brought oil to the surface ships. This allowed the total pressure of the gushing oil to flow into the cap. The cap contained the oil and stopped the leak.

Meanwhile, BP continued to drill the two relief wells, which took four months to reach the Macondo well on September 15. BP pumped cement into the well 17,977 ft below the sea floor to permanently seal it. It took three days to complete. BP then permanently completed and abandoned the initial Macondo well as well as the two relief wells.

Though the oil has stopped gushing into the GOM, the aftermath remains today. Aside from the environmental and fishing and tourism impact, offshore exploration and production has been slow to return to pre-disaster levels. This is due mainly to governmental restraints.

On May 27th, President Obama instituted a temporary moratorium on offshore drilling in 500 ft or more of water, which also suspended drilling on 33 wells already in progress. He also implemented new standards for equipment and procedures.

The US Department of the Interior then issued tighter standards for barriers at underwater wells and BOPs on June 8, 2010. At the same time, the Interior Department started requiring CEOs of drilling companies to certify that their operations comply with the new regulations, including equipment testing and personnel training. Drilling in less than 500 ft of water resumed under the new standards. However, the deepwater drilling ban remained in effect until June 22, when a US federal judge in New Orleans lifted the moratorium saying it was "a blanket, generic, indeed punitive moratorium," as well as a potential harm to the economy, businesses and workers.

In response, Interior Secretary Salazar immediately issued a new order that contained additional information showing why the moratorium was necessary. The Interior Department defended Salazar's actions, saying Interior Secretary Ken Salazar "has merely fulfilled his continuing duty to manage the [Outer Continental Shelf] by reanalyzing the previously directed suspensions, evaluating new information on the adequacy of safety and environmental protection standards for OCS lease operations in the Gulf of Mexico, and issuing a new decision."
Interior Secretary, Ken Salazar
Interior Secretary, Ken Salazar
The deepwater ban went in effect again until November 30, 2010. However, President Obama lifted the drilling ban in deepwater GOM waters on Oct. 11, 2010. Salazar said in a statement that drilling in waters deeper than 500 ft can resume if operators follow the new Drilling Safety Rule.

"Under these new rules, operators will need to comply with tougher requirements for everything from well design and cementing practices to blowout preventers and employee training," Salazar said. "They will also need to develop comprehensive plans to manage risks and hazards at every step of the drilling process, so as to reduce the risk of human error."

Though the drilling ban was lifted in October, the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) didn't approve the first post-moratorium deepwater drilling permit until Feb. 28, 2011.

On Jan. 11, 2011, the White House released a report of its investigation of the oil spill. The report stated, "BP, Halliburton, and Transocean did not adequately identify or address risks of an accident…As a result, officials made a series of decisions that saved BP, Halliburton, and Transocean time and money—but without full appreciation of the associated risks."

Transocean and Halliburton attempted to sidestep the blame and pointed fingers at BP saying they were just following orders. Halliburton further criticized BP for its failure to run a cement bond log test.

In March, US Investigators, who hired Det Norske Veritas (DNV) to examine the failed blowout preventor, released a report that found a piece of drill pipe that was trapped inside the blowout preventer kept it from closing. The report didn't blame BP, Transocoean or Halliburton for the equipment failure. It simply focused on the cause of the failure.

According to a Reuters report from April 3, 2011, BP will be resuming its operations in the GOM in July 2011. The operator will be restricted to maintaining or increasing production on existing platforms. BP will not be permitted to drill exploration wells.


LINK 
The Gulf of Mexico Oil Spill
Latest Deepwater Horizon Headlines