Oil Companies Expect Drilling Moratorium Maybe Lifted-Report

21st Jun 2010 09:43

LONDON (Dow Jones)--Oil companies are keeping their rigs on standby in the Gulf of Mexico in expectation of at least a partial lifting of the drilling moratorium on new deepwater drilling ahead of its scheduled ending in November, the Financial Times reports Monday. Marvin Odum, president of Shell Oil, the U.S. arm of Royal Dutch Shell PLC (RDSA) said in an interview that since so much had already emerged about the Deepwater Horizon rig explosion, the root cause could likely be determined before the moratorium ended and any new regulations swiftly implemented, the newspaper reports. "We haven't made any decision to move our rigs yet," Odum said. "I hold some hope," he told the newspaper. The oil industry said 32 deepwater rigs were in the gulf before the explosion with some 12 being lease to groups not linked to BP PLC (BP) at a daily cost of about $500,000 each, the newspaper reports. U.S. President Barack Obama issued a moratorium while investigating the cause of the April 20 exploration on a BP-contracted rig that resulted in a huge environmental disaster. Newspaper Web site: http://www.ft.com/cms/s/0/94aec29e-7c99-11df-8b74-00144feabdc0.html -London Bureau, Dow Jones Newswires; +44 (0)20 7842 9330 (END) Dow Jones Newswires June 21, 2010 04:43 ET (08:43 GMT)