In the aftermath of Hurricane Ivan, the U.S. Department of the Interior’s Minerals Management Service (MMS) continues to monitor the progress made by the oil and gas industry in returning to normal levels of operation in the Gulf of Mexico.  About 475,000 barrels of oil per day (BOPD) and about 1.8 billion cubic feet of gas per day (BCFPD) remain shut-in.  Based on preliminary information supplied by operators, perhaps as much as 150,000 BOPD and 1.0 BCF/D of the shut-in production may be back on line by the end of October.  For the longer term, about 96% of the normal daily GOM production, which is approximately 1.7 million BOPD and approximately 12.3 BCFPD of gas, should be back on line within 6 months.

MMS Gulf of Mexico Regional Director Chris Oynes said, “While significant production from Gulf of Mexico facilities remains shut in due mostly to pipeline damage there is a good likelihood that significant portions of this may be able to return to production in a few months”.    

According to Oynes, “The companies are engaged in around the clock repair operations and only bad weather is slowing down further progress.  For example, the tropical storm Matthew in the Gulf area today is stalling operations.”  Oynes noted that “the operators are now starting to approach MMS with alternative ways to return to production while pipeline repairs are continuing.  MMS expects that some companies will soon request approval for modifications to their past plans to allow offloading of production from a platform to a large tanker and then further offload the production into a shuttle tanker to take to delivery points onshore.  This will help restore production ahead of pipeline repairs.  MMS will carefully consider the technical and environmental merits and risks of any proposals filed, attach appropriate protective measures, and will closely coordinate the review of all applications with the appropriate government agencies including the U.S. Coast Guard.”

During the past several weeks industry has continued to assess damage to their Gulf of Mexico facilities caused by Hurricane Ivan.  Of the 4,000 structures and 33,000 miles of pipelines in the gulf, the MMS estimates that 150 platforms and 10,000 miles of pipelines were in the direct path of Hurricane Ivan.  A substantial amount of the deferred production is directly attributable to damage that has occurred along pipeline routes rather than actual structural damage to the producing platforms.  Pipelines in mud slide areas off the mouth of the Mississippi River experienced failures and will take a significant effort to locate and repair because the pipelines are buried by as much as 20 to 30 feet of mud.  Overall, twelve large diameter pipelines (10” or larger) were damaged in Federal waters.  For specific information on the large diameter pipelines that incurred damage, please see the attached table.  For specifics on locations of the destroyed platforms and platforms that had major damage, please see the attached tables.

Because industry is still conducting underwater structural damage assessments with divers and Remotely Operated Vehicles, additional information could change the MMS damage summary.

The Minerals Management Service is the federal agency in the U.S. Department of the Interior that manages the nation’s oil, natural gas, and other mineral resources on the Outer Continental Shelf in Federal offshore waters.  The agency also collects, accounts for, and disburses mineral revenues from Federal and American Indian lands.  MMS disbursed more than $8 billion in FY 2003 and more than $135 billion since the agency was created in 1982.  Nearly $1 billion from those revenues go into the Land and Water Conservation Fund annually for the acquisition and development of state and Federal park and recreation lands.

Industry reports to MMS that seven platforms were destroyed and six platforms had major damage.  Five drilling rigs had major damage.  Production lost from five of the destroyed platforms is about 3,100 barrels of oil per day (BOPD) and nine million cubic feet of gas per day (MMCF/D).  The other two destroyed platforms did not produce – one was a single disposal well and the other was a gathering facility.  Additional information is being developed each day as further assessments are completed.  Major damage examples include bent structural supports, rig derricks collapsed, production vessels and piping destroyed, helicopter landing decks overturned, and living quarters collapsed.  Major damage does not include the loss of handrails or deck grating for example.

Area Key

GI            =              Grand Isle
MC         =              Mississippi Canyon
MP          =              Main Pass
SP           =              South Pass
SS           =              Ship Shoal
VK          =              Viosca Knoll

Relevant Web Sites:
   MMS Main Website
   Gulf of Mexico Website

Media Contacts:
   Debra Winbush  (504) 736-2597
   Caryl Fagot        (504) 736-2590

MMS: Securing Ocean Energy & Economic Value for America
U.S. Department of the Interior
 

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Last Updated: 10/08/2004, 10/08/2004 05:38 PM Central Time