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Oil companies fund $1bn spill system

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Plans afoot to return to operations in the Gulf of Mexico

In a move to avoid the huge oil spill BP is gradually dealing with in the Gulf of Mexico, and masses of bad publicity the company has generated, a consortium of four of the world’s biggest oil producers is funding research into a capture and containment systems for escaped oil.

Chevron, ConocoPhillips, ExxonMobil and Shell have revealed plans to build and deploy a $1 billion rapid response system available to capture and contain oil in the event of a potential future underwater well blowout in the deepwater Gulf of Mexico.

The new system will be flexible, adaptable and able to begin mobilisation within 24 hours and can be used on a wide range of well designs and equipment, oil and natural gas flow rates and weather conditions. The new system will be engineered to be used in deepwater depths up to 10,000 feet and have initial capacity to contain 100,000 barrels per day with potential for expansion.

The companies all have interests in the area and the investment could be seen as a step in returning to operating in the area which has been stopped by the US Government following the disastrous Deepwater Horizon spill.

The companies have committed $1 billion to fund the initial costs of the system but additional operational and maintenance costs for the subsea and modular processing equipment, contracts with existing operating vessels in the Gulf of Mexico and any potential new vessels that may be constructed will incur further costs.

This system will be pre-engineered, constructed, tested and ready for rapid deployment in the deepwater Gulf of Mexico. It is being developed by a team of marine, subsea and construction engineers from the four companies.

The system will include specially designed subsea containment equipment connected by manifolds, jumpers and risers to capture vessels that will store and offload the oil. Dedicated crews will ensure regular maintenance, inspection and readiness of the facilities and subsea equipment.

The companies will form a non-profit organisation, the Marine Well Containment Company, to operate and maintain this system. Other companies will be invited to join.

Work on this new containment system is being accelerated to enhance deepwater safety and environmental protection in the Gulf of Mexico, which accounts for 30 percent of U.S. oil and gas production.

The sponsor companies will proceed immediately with the engineering, procurement and construction of equipment and vessels for the system. ExxonMobil will lead this effort on behalf of the four sponsor companies.

“If we all do our jobs properly, this system will never be used,” said ExxonMobil chairman and CEO Rex Tillerson.

“The extensive experience of industry shows that when the focus remains on safe operations and risk management, tragic incidents like the one we are witnessing in the Gulf of Mexico today should not occur.”
Pic: The reponse to the Deepwater Horizon spill.