From: Jack M.Sianturi <[email protected]>
Subject: "BP spuds relief well for oil spills"

FYR and FYI.

BP announced Tuesday that work has begun to drill a relief well to
intercept and isolate the oil well that is spilling oil in the US Gulf
of Mexico. The GSF Development Driller II drillship is drilling this
second relief well. Another drillship, GSF Development Driller III,
spudded the first relief well at 3 p.m. Central Daylight Time on Sunday.

The British supermajor plans for the new well in 5,000 feet of water --
to intercept the existing, leaking well at approximately 13,000 feet
below the seabed and permanently seal it. The new drill site is located
approximately one-half mile on the seabed from the leaking well in
Mississippi Canyon block 252. According to BP, drilling should take
approximately three months.

"This is another key step in our work to permanently stop the loss of
oil from the well," said BP Group Chief Executive Tony Hayward in a
written statement. "At the same time we are continuing with our efforts
to stop the leak and control the oil at the seabed, to tackle the oil
offshore, and to protect the shoreline through a massive effort together
with government agencies and local communities."

Innovative Technique, Coffer Dam Progress

BP reported that it has also carried out a second approved trial
injection of dispersants directly into the oil flow at a point close to
the main leak on the seabed. The technique is intended to efficiently
mix the oil and dispersant by breaking up and dispersing accumulations
of oil, allowing it to degrade naturally and reduce surface impact.
Companies spanning the oil industry suggested that BP employ this
innovative technique after it approached them last week for additional
ideas and expertise to control the well and tackle the spill.

According to BP, rapid progress also is being made in constructing a
coffer dam, or containment canopy, to contain the release of crude oil
from the well. A 14 x 24 x 40-foot steel canopy has already been
fabricated. Other-sized canopies are under construction and being
sourced. Once lowered over the leak site and connected by pipe, the
canopy is designed to channel the flow of oil from the subsea to the
surface where it could be processed and stored safely onboard a
specialized vessel. Weather permitting, first installation of a canopy
on site is expected to start in a little over a week, allowing the
process of testing and commissioning to begin. Only once this is
complete will the effectiveness of the system be demonstrated.

The company added that it continues to use up to eight remotely operated
vehicles (ROVs) at the seabed to work on the blow-out preventer and
subsea equipment. Although it is difficult to accurately estimate the
rate at which oil is flowing from the well, the U.S. National Oceanic
and Atmospheric Administration (NOAA) reckons that approximately 5,000
barrels (210,000 gallons) of oil per day are escaping from the well.

Improving Weather Outlook, Stocked Staging Posts

On the surface, weather hampered surface operations over the weekend but
is forecast to improve in coming days. BP currently has 230,000 gallons
of dispersant available to deploy once the sea state is calm enough and
a further 208,000 gallons on order. Offshore booms and specialist oil
spill response vessels, skimmers and barges will return to operation in
calmer seas, treating and collecting as much oil as possible before it
reaches the coast.

The onshore activity is focused on six locations in the potentially
affected states: Venice and Port Sulphur, Louisiana; Pascagoula and
Biloxi, Mississippi; Mobile, Alabama; and Pensacola, Florida. Staging
posts are in place stocked with people and material to help protect the
shoreline in each area. Work is continuing to install marine protection
booms along the coast. Hundreds of thousands of feet of boom have been
deployed and, to date, 2,000 volunteers have been trained to assist in
the response effort.

Cautioning that it is difficult to accurately estimate the cost to the
MC252 owners of the efforts to contain the spill and secure the well, BP
stated that the current estimate exceeds $6 million per day. The company
added the figure is rising as activity increases. Also, BP pointed out
that it is too early to quantify other potential costs and liabilities
associated with the incident.

++++deepwater
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