2nd UPDATE: BP Begins Reinstalling Cap On Leaking Well

24th Jun 2010 01:17

(Updates with details from BP about operation to reinstall cap.) By Susan Daker Of DOW JONES NEWSWIRES BP PLC (BP, BP.LN) said late Wednesday that it had begun to reinstall a cap the company removed earlier in the day after a collision with an underwater robot, paving the way for the resumption of oil collection efforts at the larger of two ships siphoning crude from a massive Gulf of Mexico spill. The removal of the cap had forced the company to halt the operation of the Discoverer Enterprise, a large drillship it is using to store crude captured from the mile-deep Macondo well. The cap connects with the vessel via a pipe, helping siphon up to 18,000 barrels of crude a day. BP said it would "take some time" to reinstall the cap above a leaking valve called blow-out preventer. Collection of oil and gas "should commence shortly thereafter," the company said in a statement. Replacing the cap quickly would enable BP to stick to its plan of capturing 53,000 barrels a day by early next week, nearly doubling its capacity to contain the leaking oil. Coast Guard Adm. Thad Allen, who leads the federal oil-spill response effort, said early Wednesday that the cap could be replaced in a few hours, but if ice-like crystals called natural-gas hydrates are found within the cap, it could take much longer. The other oil-collecting vessel, the Q4000, is still capturing, and flaring, about 10,000 barrels of oil a day. The underwater collision is the largest setback for BP's oil-collection efforts since the company installed the containment cap over the leaking well nearly three weeks ago. It's not likely to be the last: The region is bracing for the height of hurricane season, in which powerful storms could disrupt spill-containment operations for several days at a time, as the flotilla of response vessels scrambles for safety. The disruption follows an interruption aboard the Discoverer Enterprise last weekend, when bad weather and a malfunction led to a 10-hour shutdown. BP is under increasing pressure to contain the growing spill, which was caused by the explosion and sinking of the Deepwater Horizon drilling rig in late April. The company has been ramping up its containment efforts as it continues work on relief wells that officials hope will enable them to kill the flow from the Macondo well. In recent weeks, the oil-collection efforts have been overshadowed by political drama, as the Obama administration demanded BP pony up $20 billion for a fund to cover costs associated with the spill and embattled chief executive Tony Hayward testified before Congress. News of the latest snag shines a fresh light on the ongoing challenges the company faces in its efforts to contain the spill. Allen said at a midday news conference that the containment cap was being checked. "They will attempt to reinstall the containment and begin producing later on today," he said. But if there are hydrates, responders will have to reinsert the pipeline connecting the vessel to the containment cap, "and that will take a considerable amount longer," Allen said. In the past, Allen has warned about possible collisions among the 15 or so subsea remote-controlled vehicles that operate near the mile-deep Macondo well. Authorities have also raised concerns about the large number of ships in the 2.5-mile radius on the surface above the well site and the number of airplanes patrolling the area. That's on top of worries that the well could spring another uncontrolled leak at anytime and that a hurricane could roar through the region, fully halting BP's containment operation. On Tuesday, Allen said he and other oil companies are working on a plan to try and divert some of the oil from the well through nearby platforms and pipelines, which could prevent an uncontrolled gusher from the well in the event of a major storm. Government and independent scientists estimate that about 35,000 to 60,000 barrels of oil a day are flowing from the well. A third containment vessel is due to arrive Tuesday, Allen said. When all three ships work in conjunction, BP should be able to capture about 53,000 barrels a day, a goal the company said it would meet by the end of June, or next Wednesday. However, if the Discoverer Enterprise doesn't resume operation quickly, this goal may not be met, said Lt. John Budiao of the U.S. Coast Guard. On Tuesday, BP collected a total of 27,090 barrels, the company said on its website. The U.K. oil giant flared 10,425 barrels of oil and captured 16,665 barrels of oil. These figures beat BP's numbers from Monday, when the company captured 25,830 barrels a day. Meantime, two people working on the oil spill response effort died, but neither of the deaths were work-related, Allen said. One of the deceased was working on a "Vessel of Opportunity" in the Gulf Shores, Ala., area, Allen said. The Vessel of Opportunity program is designed by BP to hire shrimpers and other boat owners to patrol the sea and look for oil. Baldwin County Coroner Stan Vinson said the worker appeared to have died from a self-inflicted gunshot wound. The other death was the result of a swimming-related accident. Allen didn't say where the swimming death occurred. -By Susan Daker, Dow Jones Newswires; 713-547-9208; [email protected] (Angel Gonzalez contributed to this article.) (END) Dow Jones Newswires June 23, 2010 20:17 ET (00:17 GMT)