MMS: '52 Offshore Production Platforms Confirmed as Destroyed'
MMS estimates that from September 13, 2008 through September 14, 2008, approximately 1,450 oil and gas production platforms in the Gulf of Mexico were exposed to hurricane conditions, winds greater than 74 miles per hour. As of August 2008, there were more than 3,800 production platforms in the Gulf of Mexico; these structures range in size from single well caissons in water depths of ten feet to a large complex facility in water depth greater than 7,000 feet.
Offshore Infrastructure Destroyed
As of September 29, 2008, 52 of the 3,800 offshore oil and gas production platforms have been confirmed as destroyed. Initial estimates are that the 52 destroyed production platforms produced a total of 13,300 barrels of oil per day and 90 million cubic feet of gas per day. Currently, MMS has no information on whether any of the destroyed platforms will be rebuilt by any operator.
MMS is releasing today additional details on the four drilling rigs that had been confirmed as destroyed by Hurricane Ike.
Destroyed Drilling Rigs
Ensco 74; Mariner Energy, Inc.; South Marsh Island 149
Pride Wyoming; Apache Corporation; Ship Shoal 283
Mad Dog Spar Rig; BP Exploration & Production, Inc.; Green Canyon 782
Rowan Anchorage; Newfield Exploration Co.; Vermilion 201
Damage reports have been defined by the estimated time it will take to make the repairs. For damage reporting purposes, MMS is considering that all platforms experiencing hurricane strength winds have the potential for minor damage. Repairs and resumption of production from facilities with minor damage can be expected to occur in less than one month. Examples of damage that would be considered minor might include missing heliport skirting, missing hand rails and pieces of grating or damaged boat landings.
As of September 29, 2008, MMS has received reports that indicate 32 platforms with extensive damage which may take from three to six months to repair. Examples of damage that would be considered extensive could include underwater structural damage or major damage to pipelines carrying the oil or natural gas to shore.
Additional reports show that 41 platforms received moderate damage taking one to three months before production can be restored. Damage that would be considered moderate may include major topside damage to critical process equipment such as the platform’s compressor or damaged risers or flex joints where pipelines connect to the platforms.
In respect to drilling rigs damaged, MMS has confirmed a report of one jackup drilling rig with extensive damage.
To date, MMS has received reports of eight gas transmission pipeline systems with damage. Analysis of the impact that this damage may have on resuming production is underway. Operators have begun to test and inspect 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.
Visual inspections of sheens/spills are being conducted as reports are received. MMS will compile and release sheen reports upon completion of the reporting and confirmation process. As previously reported, there was one report of a release totaling 200 barrels of oil during the hurricane event. Upon investigation, no sheen was observed. It is expected that the oil dissipated through the course of the hurricane. There have been no reports of oil impacting the shoreline or affecting birds and wildlife from releases in the Gulf of Mexico federal waters.
Production from the Gulf of Mexico accounts for 25 percent of the oil produced domestically and 15 percent of the natural gas produced domestically. As of June 2008, daily production estimates for the Gulf of Mexico were 1.3 million barrels of oil and 7.0 billion cubic feet 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 billion cubic feet of gas per day.
Working with oil and gas operators, there are tools that can be used to assist in resuming production which is curtailed because of damaged pipelines. These tools include barging, temporary flaring, and re-routing of product through other pipelines. Use of these tools requires that offshore operators submit requests to MMS for approval.
Updated damage assessments will be issued as needed.
Operates 3 Offshore Rigs
- Ancala Acquires Apache's Two North Sea Gas Pipeline Assets (Nov 20)
- Apache Raises North America Output Forecast, Swings To Profit (May 04)
- Oil Producer Apache Posts Smaller-Than-Expected Loss (Nov 03)
Company: BP plc more info
Operates 32 Offshore Rigs
- BP: 2017 'Massive' Year for Global Upstream Projects (Dec 07)
- BP Seeks Stake In Cairn Energy Senegal Assets (Nov 20)
- Officials: BP, Eni Interested In Developing Iraq's Majnoon Oilfield (Nov 20)
Company: ENSCO International Incorporated more info
Manages 64 Offshore Rigs
- Ensco Acquires Atwood Oceanics, Lays Off Staff (Oct 10)
- Lamprell to Compensate Ensco for Delay in Delivery of ENSCO 140 (Aug 29)
- Lamprell Delays Delivery of Jackup to Mid-August Due to Technical Issue (Jul 27)
Company: Minerals Management Service (MMS) more info
- Obama Names New Head of MMS (Jun 15)
- Abbey Implements New Drilling Requirements (Jun 07)
- MMS Chief Resigns (May 27)
Company: Newfield Exploration Company more info
- Big Shale Turns OPEC Ally From Foe With Focus on Oil Returns (Dec 04)
- Shale Drillers Show Few Signs of Slowing as Profits Expand (Aug 02)
- $2 Billion Gulfport Buy Shows Drillers Thirsting for Next Play (Dec 15)
Company: Mariner Energy more info
- BOEMRE Deems Heater-Treater Cause of Vermilion Fire (May 25)
- Apache Releases Earnings Consideration Elections (Nov 15)
- Apache Finalizes $800MM Merger with Mariner (Nov 10)
Company: Rowan Companies more info
Manages 21 Offshore Rigs
- Rowan Lays Off Another 50 Offshore Workers (Jun 26)
- Rowan to Lay Off 150 Offshore Workers (May 31)
- Rowan Idles Rig, Will Lay Off Up To 110 Workers (Nov 28)
Company: Pride International more info
- Randy Stilley Comes on Board of Paragon Offshore (Feb 04)
- Ensco Completes Pride Acquisition (May 31)
- Pride, Ensco Enter MOU in Merger Lawsuit (May 20)