July 12 – BP Plc may stop the flow of crude from its leaking Gulf of Mexico well, source of the biggest oil spill in U.S. history, beginning with a pressure test today.
BP plans to bolt a 40-foot (12-meter) stack of valves atop the well today and stop the flow for 48 hours as a test, Doug Suttles, chief operating officer for exploration and production, told reporters today on a conference call. If the plan works, the valves will keep oil from leaking until the well can be plugged with cement next month, he said. Should the test fail, BP will resume piping oil to ships on the surface.
BP’s Macondo well has been spewing into the ocean as much as 60,000 barrels of oil a day, according to a government estimate, since an April 20 drilling-rig explosion that killed 11 workers. The new cap has pressure-monitoring equipment that wasn’t available in May, when BP abandoned an effort to seal the well from above, company spokesman Bill Salvin said. “We need to know what the pressure is inside that cap to know what our next steps are, whether we can shut it in or will have to produce oil to keep the pressure off,” National Incident Commander Thad Allen said today in a CNN interview.
BP and the U.S. government quit trying to stop the leak on May 29, after a so-called top-kill technique in which drilling mud was injected into the well failed. Allen said the concern then was that the well bore might be damaged and that, absent pressure monitoring, operators wouldn’t know if shutting the valves forced crude to gush out uncontrolled. BP then focused on capturing oil and piping it to vessels on the surface.
The new cap contains three large valves, or rams, like those used in blowout preventers, which oil and gas drillers use to halt unexpected surges in pressure, Salvin said. The Macondo well’s blowout preventer failed, BP Senior Vice President Kent Wells told a presidential commission investigating the disaster.
The well can be shut if it withstands the expected pressure once the valves on the new cap are closed, Suttles said. Pressure lower than expected would suggest leakage in the well bore, indicating BP should continue to let oil flow to ships on the surface for processing, he said. BP and Obama administration officials will make that decision, he said.
Underwater robots are bolting in place a transitional fitting that was placed atop the well overnight, Suttles said. BP’s “confidence is growing” that it can control the well because installing the fitting gave engineers the “most concern” before starting the job, he said.
“We remain on track to have the sealing cap in place within four to seven days,” Suttles said. “We’re on day three.”
The remaining portion of the cap installation is relatively easy, said Les Ply, a retired consultant on drilling and plugging wells. The remaining work involves attaching equipment that was tested at the surface, which should be less difficult than earlier stages in which BP had to install parts that had been on the seafloor, he said.
BP began capturing oil and natural gas from the well and piping it to vessels on the surface last month. The company said today it has spent $3.5 billion on the spill, including oil and gas containment, cleanup and damage claims.
BP rose as much as 10 percent in U.K. trading after a report in the Sunday Times of London said Exxon Mobil Corp. may consider a takeover bid for the company.
Even if the new stack of valves stops the Gulf oil leak, BP said it will need to finish drilling an intercept well to permanently plug Macondo with cement. The first of two relief wells, started May 2, is on schedule to intercept the leaking well by the end of July, Suttles said. Plugging it may take until mid-August, he said.
Macondo is unsuitable for production because it blew out before it was completed, BP said. The company plans to abandon the well after plugging it.
Source: Bloomberg Weekly