Deepwater Horizon

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Deepwater Horizon.jpg
Deepwater Horizon prior to destruction. Parts of the structure providing buoyancy are invisible below the waterline in this image.
Career 100x35px
Name: Deepwater Horizon
Owner: Transocean's Triton Asset Leasing GmbH[1]
Operator: Transocean
Port of registry: Majuro, Marshall Islands
Route: Gulf of Mexico
Ordered: December 1998
Builder: Hyundai Heavy Industries[2]
Cost: US$560 million [3][4]
Way number: 89
Laid down: March 21, 2000
Completed: 2001
Acquired: February 23, 2001
Maiden voyage: Ulsan, South KoreaFreeport, Texas
Out of service: April 21, 2010 (sunk following explosion) [5]
Identification: ABS class no.: 0139290
Call sign: V7HC9
IMO number: 8764597
MMSI no.: 538002213
Fate: Destroyed [5]
Status: Sunk at 28°44′12″N 88°23′13″W / 28.736667°N 88.386944°W / 28.736667; -88.386944Coordinates: 28°44′12″N 88°23′13″W / 28.736667°N 88.386944°W / 28.736667; -88.386944
General characteristics
Class and type: ABS +A1 DPS-3 Column Stabilized MODU
Tonnage: 32,588 GT
9,776 NT
Displacement: 52,587 t (51,756 LT; 57,967 ST)
Length: 112 m (367 ft)
Beam: 78 m (256 ft)
Height: 97.4 m (320 ft)
Draught: 23 m (75 ft)
Depth: 41.5 m (136 ft)
Deck clearance: 34.010 m (111.58 ft)
Installed power: 7,000 kW 11,000 volts
6 x Wärtsilä 18V32 9775 hp diesel engines
6 x ABB AMG 0900xU10 AC generators
Propulsion: 8 x Kamewa 7,375 hp, 360° fixed propeller azimuth thrusters
Speed: 4 kts
Capacity: Liquid mud: 705 m3 (24,900 cu ft)
Drill water: 2,078 m3 (73,400 cu ft)
Potable water: 1,185 m3 (41,800 cu ft)
Fuel oil: 4,426 m3 (156,300 cu ft)
Bulk mud: 386 m3 (13,600 cu ft)
Bulk cement: 231 m3 (8,200 cu ft)
Crew: 146
Notes: [6][7]

Deepwater Horizon was an ultra-deepwater dynamically positioned, semi-submersible offshore oil drilling rig.[6][8] Built in 2001 in South Korea by Hyundai Heavy Industries,[2] she was commissioned by R&B Falcon, which later became part of Transocean,[9] registered in Majuro, Marshall Islands, and leased to BP plc until 2013.[10]

In September 2009, the rig drilled the deepest oil well in history at a vertical depth of 35,050 ft (10,683 m) and measured depth of 35,055 ft (10,685 m)[11] in the Tiber field at Keathley Canyon block 102, approximately 250 miles (400 km) southeast of Houston, in 4,132 feet (1,259 m) of water.[12]

On April 20, 2010, when drilling at the Macondo Prospect, an explosion on the rig caused by a blowout killed eleven crewmen and ignited a fireball whose flames were visible from 35 miles (56 km) away.[13] The resulting fire could not be extinguished and, on April 22, 2010, Deepwater Horizon sank, leaving the well gushing at the sea floor and causing the largest offshore oil spill in United States history.[14]

Design

File:Deepwater Nautilus.jpg
Deepwater Nautilus, non-DP sister ship to the Horizon, in transit, showing the full design (including underwater section).

Deepwater Horizon was a fifth-generation,[6] RBS-8D design (ie model type),[6] ultra-deepwater,[8] dynamically positioned,[6] column-stabilized,[2] semi-submersible mobile offshore drilling unit,[6] designed to drill subsea wells for oil exploration and production using an 18.75 in (476 mm), 15,000 psi (100,000 kPa) blowout preventer, and a 21 in (530 mm) outside diameter marine riser.[6] Deepwater Horizon was the second semi-submersible rig constructed of a class of two, although Deepwater Nautilus, her predecessor, is not dynamically positioned. The rig was 396 by 256 ft (121 by 78 m) and capable of operating in waters up to 8,000 feet (2,400 m) deep, to a maximum drill depth of 30,000 ft (9,100 m),[6] and in 2010 was one of approximately 200 deepwater offshore rigs capable of drilling in waters more than 5,000 ft (1,500 m).[15] Its American Bureau of Shipping (ABS) class notations were "A1, Column Stabilized Drilling Unit, AMS, ACCU, DPS-3".[2]

In 2002, the rig was upgraded with "e-drill," a drill monitoring system whereby technicians based in Houston, Texas, received real-time drilling data from the rig and transmitted maintenance and troubleshooting information.[16]

History

Construction and ownership

Deepwater Horizon was built for R&B Falcon (which later became part of Transocean[9]) by Hyundai Heavy Industries in Ulsan, South Korea.[2] Construction started in December 1998, the keel was laid on 21 March 2000,[7] and the rig was delivered on 23 February 2001,[7] after the acquisition of R&B Falcon by Transocean.[17]

Transocean, through its Steinhausen, Switzerland[18] subsidiary[19] Triton Asset Leasing GmbH,[7] operated the rig under the Marshalese flag of convenience.[20] The rig was leased to BP on a 3 year contract for deployment in the Gulf of Mexico following construction,[21] the lease being renewed in 2004 for a year,[22] 2005 for 5 years,[23] and 2009 for a further 3 years covering 2010 - 2013.[10][20] The latter contract was worth $544 million, or $496,800 per day for 3 years,[24] for the "bare rig",[25] with crew, gear and support vessels estimated to cost the same per day again.[25]

According to R&B Falcon's SEC filings for 2001, the transfer document between R&B Falcon and Transocean was dated 17 August 2001,[26] and the rig was specified as "official registration number of 29273-PEXT-1, IMO No. 8764597, with Gross Tonnage of 32,588 and with Net Tonnage of 9,778" [26] and the transfer value as US $340 million.[26] As at 2010, the rig was insured for US $560 million, the sum covering its replacement cost and wreckage removal.[17]

Drilling operations

Deepwater Horizon worked on wells in the Atlantis (BP 56%, BHP Billiton 44%) and Thunder Horse (BP 75%, ExxonMobil 25%[27]) oil fields. It was described at times as a "lucky" and "celebrated" rig,[28] and in 2007 was still described as "[o]ne of the most powerful rigs in the world".[29] In 2006 it discovered oil in the Kaskida field, and in 2009 the Tiber field.[30][31] The well in the Tiber field has a vertical depth of 35,050 ft (10,683 m) and a measured depth of 35,055 ft (10,685 m), of which 4,132 ft (1,259 m) was water. The well was the deepest oil well in the world,[31][32][33][34] and more than 5,000 feet (1,500 m) further below the seabed than the rig's official drilling specification stated on the company's fleet list.[35]

In February 2010, Deepwater Horizon commenced drilling an exploratory well at the Macondo Prospect (Mississippi Canyon Block 252), about 41 miles (66 km) off the southeast coast of Louisiana, at a water depth of approximately 5,000 feet (1,500 m).[36] The Macondo prospect exploration rights were acquired by BP in 2009,[37] with the prospect jointly owned by BP (65%), Anadarko (25%) and MOEX Offshore 2007 (10%).[38] Deepwater Horizon was still working on the Macondo site on 20 April 2010, when a violent explosion occurred leading to destruction of the rig and resulting oil spill.[30][39][40][41] The well was in the final stages of drilling at the time; the cement casing for the well was injected and hardening, and the rig was due to move shortly to its next role as a semi-permanent production platform at a new location (not named in the media).[28] Permission had already been requested from MMS to terminate operations at the Macondo site.[citation needed]

During its operational lifetime, the rig was actively in operation for 93% of its working life (2,896 of 3,131 days). The remainder partly relates to time spent between sites.[42]

Regulation, safety, and inspection

The Minerals Management Service (renamed on 18 June 2010 to the Bureau of Ocean Energy Management, Regulation and Enforcement, or Bureau of Ocean Energy (BOE))[43] is the regulatory and inspecting body for offshore oil drilling and rigs.[43] According to an Associated Press investigation such examination as was performed was for the most part brief, prefunctory, extremely lax, and with "poor recordkeping".[42] Crucial safety documentation and emergency procedure information, including documentation for the exact incident that later occurred, was absent.[42] The exact number of required monthly inspections varied over time, with the required monthly inspection for the first 40 months but after that around 25% of inspections were omitted,[42] although the investigation notes this is partly expected, since there are circumstances such as weather and movement which preclude an inspection.[42] Reports of the last three inspection for 2010 were provided under Freedom of Information laws. Each of these inspections had taken two hours or less.[42]

During its lifetime the rig received 5 citations for non-compliance, 4 of which were in 2002 (safety, including the blowout preventer) and the other in 2003 (pollution).[42] A sixth citation in 2007 related to non-grounded electrical equipment was later withdrawn when the equipment was determined to be compliant with regulations.[42] Overall the Deepwater Horizon's safety record was "strong" according to a drilling consultant reviewing the information.[42] In 2009 the Minerals Management Service "herald[ed] the Deepwater Horizon as an industry model for safety".[42] According to AP's investigation "its record was so exemplary, according to MMS officials, that the rig was never on inspectors' informal 'watch list' for problem rigs".[42]

BP and Transocean safety record

Following the incident, BP was criticized in the media as having a flawed culture which did not attend to safety issues as it might,[44] and corporate ratings group RiskMetrics described BP's as having "worse health, environment and safety record than many other major oil companies".[44] BPs recordable injury frequency rate at OSHA was 1.42 injuries for every 200,000 hours in 1999; by 2009 it was 0.34, having declined steadily year-on-year.[45] The total number of reportable incidents per 200,000 hours fell by 10% in both 2006 and 2008, was unchanged in 2007, and fell by 21% in 2009 (the last year for which figures are available).[45] BP chief executive Tony Hayward commented that "You can’t change an organization of 100,000 people overnight, but we have made extraordinary strides in three years [since the Texas City Refinery explosion and Prudhoe Bay oil spill]."[44] The head of energy research at RiskMetrics agreed that "the company has made improvements during that time".[44]

The rig owner, Transocean, also had a "strong overall" safety record with no major incidents for 7 years.[46] However an analysts' review "painted a more equivocal picture" [46] with Transocean rigs being disproportionately responsible for safety related incidents in the Gulf[46] and industry surveys reporting concerns over falling quality and performance.[46] In the 3 years 2005 to 2007 Transocean was the owner of 30% of oilrigs active in the Gulf and 33% of incidents that triggered an MMS investigation were on Transocean rigs, but in the 3 years from 2008 to February 15 2010 it owned 42% of rigs but was the owner for nearly 3/4 (73%) of incidents.[46] Industry surveys saw this as an effect of its November 2007 merger with rival GlobalSantaFe.[46] Transocean "has had problems" with both cement seals (2005) and blowout preventers (2006), which are the suspected cause of the Deepwater Horizon loss,[46] although Transocean states cementing is a third party task and it has "a strong maintenance program to keep blowout preventers working".[46] According to the Wall Street Journal online:

"In 2008 and 2009, the surveys ranked Transocean last among deep-water drillers for "job quality" and second to last in 'overall satisfaction'. For three years before the merger, Transocean was the leader or near the top in both measures. Transocean ranked first in 2008 and 2009 in a category that gauges its in-house safety and environmental policies" [46]
"There were few indications of any trouble with the Deepwater Horizon before the explosion. The rig won an award from the MMS for its 2008 safety record, and on the day of the disaster, BP and Transocean managers were on board to celebrate seven years without a lost-time accident. Toby Odone, a BP spokesman, said rigs hired by BP have had better safety records than the industry average for six years running, according to MMS statistics that measure the number of citations per inspection. BP has been a finalist for a national safety award from the MMS for the past two years. Mr. Odone wouldn't comment on BP's relationship with Transocean after the Gulf disaster but said BP continues to use Transocean rigs." [46]

Explosion and oil spill

File:Deepwater Horizon offshore drilling unit on fire 2010.jpg
Deepwater Horizon on fire after the explosion.

At 09:45 p.m. CDT April 20, 2010, during the final phases of drilling the exploratory well at Macondo,[47] a geyser of seawater erupted from the marine riser onto the rig, shooting 240 ft (73 m) into the air. This was soon followed by the eruption of a slushy combination of mud, methane gas, and water. The gas component of the slushy material quickly transitioned into a fully gaseous state and then ignited into a series of explosions and then a firestorm. Workers immediately attempted to activate the blowout preventer, but it failed.[48]

At the time of the explosion, there were 126 crew on board; seven were employees of BP, 79 of Transocean, there were also employees of various other companies involved in the operation of the rig, including Anadarko, Halliburton and M-I Swaco.[49] Eleven workers were presumed killed in the initial explosion. The rig was evacuated, with numerous injured workers airlifted to medical facilities.[5] Support ships sprayed the rig with water in an ultimately unsuccessful bid to cool it and prevent it from capsizing. This was also intended to buy time in order to attempt to end the flow of oil and gas that were feeding the flames from coming up the riser pipe. If successful, this action would have reduced the flames and allowed special teams of firefighters to board the stricken rig and extinguish the remaining fire.[50]

After burning for approximately 36 hours, Deepwater Horizon sank on April 22, 2010. The remains of the rig were located resting on the seafloor approximately 5,000 ft (1,500 m) deep at that location, and about 1,300 ft (400 m) (quarter of a mile) northwest of the well.[39][51][52]

The oil from the ruptured well continues to flow as of June 2010. A number of attempts to staunch the flow were either unsuccessful or have met with only limited success, and relief wells to allow termination of the flow are unlikely to be completed for some time. BP has said that measures to fully curtail the flow are unlikely to succeed until at least August 2010, the estimated completion date for the relief wells.[53] The spill has the potential to cause massive damage to the ecosystem of the gulf coast and waters. In the worst case oil could affect oxygen levels in the water,[54] cause devastation to the food chain,[54] seafood industries,[55] and to life deep at sea and along hundreds of miles of coastline,[56] requiring years or decades for the ecosystem to recover[57] Some estimates of the spill make this the largest oil spill ever in the Gulf of Mexico and US history.[58]

Aftermath

Transocean received an early partial settlement for total loss of the Deepwater Horizon of US $401 million around May 5, 2010.[59] Financial analysts note that the insurance recovery is likely to outweigh the value of the rig (although not necessarily its replacement value) and any liabilities - the latter estimated at up to US $200 million.[60]

Litigation, ultimate roll call of damage, and the scope of final insurance recovery, are all unknown at present.

See also

References

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  56. BP Oil Leak May Last Until Christmas in Worst Case Scenario
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External links

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