Deepwater Horizon: GoM spill affects multiple operations

Offshore staff

HOUSTON – The effects of the BP oil spill in the Gulf of Mexico are reaching further into the upstream oil and gas industry. US President Barak Obama’s ban on GoM drilling following the Deepwater Horizon incident has changed operators’ active and planned work.

Anadarko Petroleum Corp., for example, is “evaluating opportunities to reallocate some of the 2010 capital from the Gulf to other areas…” according to Jim Hackett, chairman and CEO. The company also declared Force Majeure on three of its contracted drilling rigs. It will, however, retain one rig which is involved in completion, workover, and other non-drilling programs during the moratorium.

ATP Oil & Gas Corp. says that under the current ban definition, it can complete its Mississippi Canyon 941 #3 well at the Telemark location, but will have to suspend work at Canyon Express in MC 305 #2.

After expressing sympathy for the individuals and families directly impacted by the explosion and fire, T. Paul Bulmahn, founder, chairman, and CEO of ATP said, “As nothing compares to the tragedy of loss of life, we also ask that no one forget the estimated 45,000 workers and the families of those workers that will find themselves unemployed as a result of the imposed deepwater work stoppage.”

On the service industry side, Halliburton Co., Baker Hughes, and Schlumberger are making plans to rearrange operations in light of the GoM drilling ban, according to local reports.

Halliburton said that while it expected to keep employees active for six months, that the ban could last longer than that. Also, the ban does not prohibit completion and workover activities.

Schlumberger said it is considering staffing levels in the GoM and can move both people and equipment quickly into other geographic areas.

Baker Hughes predicted that it might have to move people and equipment out of the US offshore for a long time if the drilling contractors have to move rigs elsewhere to work.

06/04/2010