Sunday, August 23, 2009

PTT says oil leak to continue for 50 days

       Thailand's PTT Exploration & Production (PTTEP) said it may take at least 50 days to plug an oil and gas spill at its Montara project in the Timor Sea by using another rig to intercept the leak and plug it with mud.
       "There is more than one way of potentially controlling the well, however at this stage this is probably our preferred course of action because it is lowest risk and highest probability of success,"PTTEP Australasia Director Jose Martins said in Perth yesterday.
       Mobilising the West Triton rig from Singapore to the site will take 20 days,preparation for the drill a further two days, drilling to secure a point above the target another 20 days and intercepting the vector to target and kill the well eight days, he added.
       The leak,250km northwest of Australia's Kimberley coast, caused a slick of light oil about 15km long, according to government authorities. Oil, gas and condensate have been seeping from the West Atlas rig, operated by Seadrill, since about 5.30am local time on Aug 21.
       A sub-surface leak in a well-bore caused the spill, which is still flowing,Mr Martins said. PTT will pay for the cost of dispersing the slick, he added.
       PTT, Thailand's only publicly traded exploration company, acquired the Montara project in February as part of its US$170 million purchase of closely held Coogee Resources. It was expected to start producing about 35,600 barrels of oil a day in the fourth quarter.
       International drilling experts arrived in Perth yesterday to help PTT engineers develop a plan to halt the leak.
       High volumes of gas around the West Atlas rig and the leaking well, known as H1, are the biggest challenge for engineers, according to Mr Martins.
       Aircraft spraying dispersant won't go within 2km of the rig, the Australian Maritime Safety Authority said today.
       "What we hope to do is intercept the existing well-bore and at that time pump heavy mud, which is designed to then flow up the H1 well and effectively block it off," Mr Martins said. The procedure has successfully been used previously,he said, without providing an example.
       A Singapore-based company has been hired to spray 91,000 litres of seawater a minute on to the West Atlas to disperse the gas and minimise the risk of ignition.
       The leak started about 3,500m below the seabed, Mr Martins said. He declined to comment on the chances of the rig catching fire, what caused the leak in the well-bore, how big the size of the hole is, how much oil or gas may be leaking and how much fixing the spill will eventually cost. Australia's Kimberley coast is described by Tourism Australia as one of the world's last true wilderness areas.

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