Shuttle tanker sent to help with BP blowout
By Gary Taylor and Katharine Fraser in Houston, with Gary Gentile in
Washington and Robert DiNardo in New York
June 10 - With 57,500 barrels of oil diverted from BP's runaway Macondo
exploration well and collection hitting 15,000 b/d, heavyweight
lightering help was headed to the Gulf of Mexico June 9 in the form of
BP's Loch Rannoch shuttle tanker dispatched from the North Sea and set
for arrival next week.
"The Loch Rannoch is a special vessel," said US Coast Guard Admiral Thad
Allen in a June 9 press conference explaining the latest logistics for
producing oil from the well at the root of the largest marine oil spill
in US history.
Although oil continues to leak into the Gulf at the Macondo site in
4,993 feet of water about 40 miles from Venice, Louisiana, BP has
continued to make progress with diversion of some of the oil through its
Lower Marine Riser Package (LMRP) successfully installed June 4.
But Allen and BP have warned that no permanent solution will occur
until the company completes a relief well designed to intercept Macondo
by the middle of August.
While the company, the Coast Guard and an army of local volunteers
fights the encroaching spill on the surface and along the Gulf Coast
shores, BP needs a way to move its collected Macondo oil to refineries
for production.
The company is using two drillships with combined storage capacity of
28,000 b/d to handle its growing Macondo production temporarily with
small lightering vessels moving oil to shore while awaiting the arrival
of the Loch Rannoch, Allen said.
As a result, the Gulf of Mexico will welcome its first large scale
shuttle tanker operation with arrival of the 130,031 dead weight tonne,
dynamically positioned shuttle tanker between June 12 and 15.
Because of its extensive network of pipelines and regulations against
flaring of associated natural gas, the Gulf of Mexico has seen only
emergency experience with shuttle tankers.
The US Minerals Management Service has approved limited use of shuttles
with short-term flaring of natural gas during oil-production
curtailments from hurricane damage to pipelines in the last few years.
And the agency also has approved the use of shuttles with a floating
production, storage and offloading facility later this year at the
Petrobras-operated Cascade project in the Gulf of Mexico.
As a permanent facility, Cascade will be moving its associated natural
gas through a pipeline.
But operators historically have opted to use pipelines for oil delivery
because they have to have them for gas production anyway.
Macondo's associated gas output is being flared under special emergency
allowances from the MMS.
Allen and BP said the LMRP containment system collected 15,600 barrels
of oil in the 24 hours before June 9, up from 14,842 barrels the day
before and 6,000 barrels when the operation began.
During his press conference, the national incident commander also
defended the government's estimate of 12,000 b/d-19,000 b/d leaking from
the well by telling reporters: "I am the government and we are not
low-balling."
Allen reminded reporters the government's flow rate technical group is
working to update the estimate with that report expected by the end of
this week or early next week (ON 6/9).
Elaborating in Washington DC, Deputy Interior Secretary David Hayes told
a US Senate committee he hopes to have that new estimate "very, very
soon."
The seven-member Flow Rate Technical Group has received a computer hard
drive from BP containing high definition video of the wellhead and can
now better determine how much of the flow is crude oil and how much is
gas, Hayes said.
"We now have better information on the oil and gas ratio," Hayes told
the Senate Energy and Natural Resources Committee. "That group...will
come up with a much better estimate of how much is coming out of the
riser."
Hayes said the group already has determined that the installation of the
LMRP last week resulted in a lower increase in flow than expected,
suggesting that the operation boosted oil output by just 4-5% rather
than the 20% feared by BP and Allen.
Because installation of the LMRP cap involved cutting a bent riser atop
the blowout preventer, Allen had warned that the operation might
temporarily increase the flow by as much as 20% until BP could fully
install the containment cap (ON 6/4).
The Flow Rate Technical Group told BP to surrender "very specific
segments of the post-riser cut video," Hayes said. "They got the whole
hard drive from BP. They are now reviewing the segments. We hope to have
additional information very soon on that point."
Hayes said the data will also allow the group to review earlier
estimates and come up with a more accurate estimate of how much has been
leaking from the well since the April 20 blowout (ON 4/22).
Noting the importance of continued collection through the LMRP
containment system, the federal on-scene coordinator released a letter,
dated June 8, instructing BP to show the government that its collection
system would be capable of running continuously with backup systems,
including additional vessels.
"There should be no interruptions of the recovery effort while awaiting
another recovery vessel to arrive on scene," US Coast Guard Rear Admiral
James Watson wrote to Doug Suttles, BP America Exploration &
Production's chief operating officer.
BP must deliver plans for "parallel" and "continuous" systems with an
implementation timeline within 72 hours of receiving the letter, Watson
added.
"Now that the so-called 'top hat' containment system has begun to
capture and recover some of the oil escaping from the wellhead, it is
imperative that you put in equipment, systems and processes in place to
ensure that the remaining oil and gas flowing can be recovered, taking
into account safety, environmental and meteorological factors," Watson
wrote.
Watson further "instructed" BP to establish a system or systems "capable
of safely collecting oil and gas flowing from the Macondo 252 well,"
adding the system "must have the appropriate redundancies to maintain
complete collection rates in the event that operational problems are
encountered in any part of the system."
If multiple vessels are to be deployed for collection and recovery,
backups should exist so that any failure of a vessel or vessels does not
stop continuous recovery of oil, Watson said.
"There should be no interruptions of the recovery effort while awaiting
another recovery vessel to arrive on scene," he said.
In its June 9 informational update, BP mentioned a lightering vessel
named The Massachusetts, which swung into action to take oil from the
Discoverer Enterprise.
"The Massachusetts began lightering this morning and should finish early
morning tomorrow," BP said. The company said lightering logistics had
prompted a pause in collection briefly on June 8.
"Operations were stable with the exception of a short period, around 2
pm, when the Enterprise rotated to set up for lightering necessitating a
reduction in choke setting and collected volumes," BP said.
The company also received another letter from Allen to BP CEO Tony
Hayward seeking "additional information" on the company's handling of
claims filed by businesses and individuals affected by the crisis.
The June 8 letter warns Hayward the US government "expects BP's claims
process to fully address the needs of impacted individuals and
businesses. We need more detail and openness from BP."
Allen's letter notes that while BP "has provided public statements on
claims eligibility and summary data on claims processing," it has not
yet responded to requests by Allen or various Gulf Coast states for
further information.
The letter asked that the company "identify a senior official" who will
work with Allen's representative on the claims process, Tracy Wareing,
and representatives from the states "to provide increased visibility
into the claims methodology and process."
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