CATEGORIZED | 2010, November/December

European Commission urges its own moratoria; industry fights against ‘unjustified’ move

Posted on 08 November 2010

By Mike Killalea, editor & publisher

Even as the deepwater drilling moratorium is lifted in the US, the European Commission urged member states to consider suspending licensing of “new complex oil or gas exploration operations” until European offshore safety regimes are assessed.

“While any decision to suspend offshore drilling operations is left to the discretion of Member States, the commission reiterates its call upon the Member States to rigorously apply a precautionary approach in the licensing of new complex oil or gas exploration operations and to examine whether a suspension of such licensing is needed until the European offshore safety regimes have been assessed in light of the Deepwater Horizon accident,” the commission proclaimed.

The announcement brought a speedy and blistering response from Oil & Gas UK, whose chief executive Malcolm Webb said, “Oil & Gas UK is extremely concerned that, once again, the EU Commission is calling for a suspension of new licensing, a measure that is wholly unjustified and inappropriate for the UK offshore oil and gas industry. It is also deeply worrying that in addition, it now proposes to implement centralized and prescriptive safety regulation.”

The result will be counterproductive, Mr Webb contended. “This would undermine the advanced and highly sophisticated regulatory regimes currently working so well, for example in the United Kingdom, Norway and the Netherlands,” he said.

Mr Webb pointed out that the UK’s Oil Spill Prevention and Response Advisory Group (OSPRAG), a coalition of industry, regulators and trade unions, clearly demonstrates the “responsiveness of the safety-case regime and the open safety culture which it breeds.”

OSPRAG, which kicked off operations in May, recently announced plans to move ahead with commissioning detailed designs for a full/partial pressure-capping device with the potential to serve as a central element of the UK’s oil-spill response contingency plans. The engineering firm Wood Group Kenny developed the system, developing three design concepts. Of these, OSPRAG opted to progress with a modular device to close off a well in the event of a blowout. OSPRAG said that this design is the most appropriate for the weather typical of the UK, particularly West of Shetland.

In the US, five major operators have committed $1 billion to developing the Marine Well Containment System. The operators, Chevron, ConocoPhillips, ExxonMobil, Shell and BP, plan specially designed equipment available for rapid response and capable of operating in water depths to 10,000 ft. This will add containment capability of 100,000 bbl/day, significantly more than the Macondo spill.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 23 July 2014

    Halliburton promotes Jeff Miller to President

    Halliburton has promoted Jeff Miller to President and has appointed him to the Halliburton Board of Directors effective 1 August 2014. Mr Miller is currently the...

  • 23 July 2014

    Statoil resumes production on Njord A platform

    Statoil has resumed oil and gas production on the Njord A platform in the Norwegian Sea, after a major reinforcement of the platform structure. Production had been shut down...

  • 22 July 2014

    Petrobras’ domestic oil production tops 2 million bbl/day in June

    Petrobras’ June oil production in Brazil averaged 2 million bbl/day (bpd), a 1.7% increase from May’s production of 1.9 million bpd. In addition, the production operated...

  • 22 July 2014

    Precision, Schlumberger partner to boost industrialization of North American unconventional drilling

    Precision Drilling has entered into a strategic technology and service agreement and marketing alliance with Schlumberger. Utilizing Precision’s Tier 1 drilling rigs and...

  • 22 July 2014

    Easternwell to manage delivery of onshore servicing rig for Brunei

    Australia’s Easternwell, a subsidiary of Transfield Services, has expanded internationally through an agreement with Flux O.S. SDN BHD (Flux), a Bruneian oil and gas company...

  • Read more news