BP Begins Reinstalling Well Cap; Collection Rate Falls

23rd Jun 2010 00:43

DOW JONES NEWSWIRES BP PLC (BP, BP.LN) said it has begun to reinstall a cap on part of the leaking oil well in the Gulf of Mexico, as it reported its oil-recovery rate dropped sharply after a deep-sea collision caused it to suspend a key operation. Late Wednesday, the company said it has started to reposition the cap on the well's blowout preventer. The process "may take some time, and collection of oil and gas should commence shortly thereafter, returning to full capacity as conditions permit," it said. Early Wednesday, BP said an underwater robot collided with the cap, forcing it to stop siphoning oil up to the larger of two vessels currently handling the diverted oil at the site. BP said late in the day that it collected about 5,500 barrels of oil and flared 4,625 barrels during the first 12 hours of Wednesday, for a total of 10,125 barrels. That total is down more than a quarter from its previous half-day amount, and the oil-collection number by itself plunged 35%. A team of scientists last week estimated about 35,000 to 60,000 barrels are flowing from the broken well every day. The vessel affected by Wednesday's suspension is capable of handling 18,000 barrels of crude a day. The company has been under intense pressure to successfully contain the spewing oil, which began in April when a deepwater drilling rig exploded and sank. The underwater collision is the biggest setback since the company installed the containment cap nearly three weeks ago, which followed a series of failed attempts. It is still working on a permanent fix to the well. BP's American depositary shares were down 0.5% at $29.51 in after-hours trading. The stock has lost half its value since the Gulf oil-spill crisis began. -By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [email protected] (END) Dow Jones Newswires June 23, 2010 19:43 ET (23:43 GMT)