MMS updates hurricane damage reports

Offshore operators continue to report damage from Hurricane Ike to the Minerals Management Service (MMS) Gulf of Mexico Regional Office.

Offshore staff

NEW ORLEANS -- Offshore operators continue to report damage from Hurricane Ike to the Minerals Management Service (MMS) Gulf of Mexico Regional Office. This information is compiled and used by MMS staff in reviewing and approving repair plans submitted by the oil and gas operators in order to resume oil and gas production from the GoM.

MMS estimates that from Sept. 13 to 14, approximately 1,450 oil and gas production platforms in the Gulf were exposed to hurricane conditions, winds greater than 74 miles per hour.

Offshore Infrastructure Destroyed
As of Oct. 6,, 54 of the 3,800 offshore oil and gas production platforms have been confirmed as destroyed. Initial estimates are that the 54 destroyed production platforms produced a total of 13,300 b/d of oil and 90 MMcf/d of gas.

Damage Reports
As of Oct. 6, MMS has received reports that indicate 35 platforms with extensive damage which may take from three to six months to repair.

Additional reports show that 60 platforms received moderate damage taking one to three months before production can be restored.

In respect to drilling rigs damaged, MMS has confirmed a report of one jack-up drilling rig with extensive damage.

Pipeline Assessments
To date, MMS has received reports of one oil pipeline system and eight gas transmission pipeline systems with damage. The analysis of the damages' impact on resuming production is continuing. Oil and gas operators and pipeline owners are testing and inspecting other pipeline systems to evaluate the full extent of any damage. Considering the large impacted area, it will take some time to complete the inspections, according to MMS.

Sheen/Spill Observations
MMS will compile and release sheen reports upon completion of the reporting and confirmation process. There have been no reports of oil released in the GoM federal waters impacting the shoreline or affecting birds and wildlife.

Resuming Production
Production from the Gulf of Mexico accounts for 25% of the oil produced domestically and 15% of the natural gas produced domestically. As of June 2008, daily production estimates for the GoM were 1.3 MMbbl of oil and 7.0 bcf of gas. Since that time, gas production from the Independence Hub facility increased and in August 2008 gas production from the Gulf was estimated at 7.4 bcf/d of gas.

10/07/2008

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