WRAPUP 7-BP says will deploy small dome in next few days

Thu May 13, 2010 5:35pm EDT

Related Topics

* BP says will attempt to deploy dome in couple of days

* Company says oil spill has cost $450 million so far

* Transocean moves to limit legal liability

* BP shares close up 1.1 pct in London (Adds Louisiana onshore oil reports, Transocean filing)

By Chris Baltimore and Steve Gorman

HOUSTON/PORT FOURCHON, La., May 13 (Reuters) - BP Plc on Thursday weighed a quick fix to contain a gusher of oil from its blown-out undersea well as a giant oil slick crept west across the Louisiana coast.

BP said it would deploy a small containment dome, known as a "top hat," to trap the oil at the site of the leak a mile (1,600 meters) beneath the Gulf of Mexico.

"The top hat deployment is (in) the next couple of days," BP spokesman Jon Pack said. "We don't have a definitive date."

If short-term efforts fail, it could take 90 days for BP to drill a relief well to cap the ruptured well.

Oil has been gushing from the well for three weeks at the rate of 5,000 barrels (210,000 gallons/795,000 liters) per day, threatening to eclipse the 1989 Exxon Valdez disaster as the biggest U.S. oil spill, and possibly the worst environmental disaster in history.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

TAKE A LOOK on the spill [ID:nSPILL]

INSIDER TV: link.reuters.com/rad93k

Graphic: link.reuters.com/teb93k

Breakingviews column [ID:nLDE64C1D1]

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

BP, whose shares have tumbled and wiped out $30 billion of market value since the rig fire on April 20, said on Thursday the oil spill had cost it $450 million so far. [ID:nLDE64C0I9] BP stock closed up 1.1 percent in London after weeks of steep declines.

"All of the techniques being attempted or evaluated to contain the flow of oil on the seabed involve significant uncertainties because they have not been tested in these conditions before," BP cautioned in a news release.

The company is trying to stop the flow through the underwater blowout preventer -- which did not work as it was supposed to after the rig explosion -- and also by placing the top hat dome over the main leak.

Nearly 100 lawsuits have already been filed across the Gulf region and the disaster, which lawyers see becoming one of the biggest class actions in U.S. history, involves billions of dollars in potential liabilities. [ID:nN12191570].

A buildup of slushy gas hydrates stymied BP's first attempt last week at covering the leak with a much-larger dome and there is no certainty that the next stab at it will succeed.

London-based BP, Transocean Ltd (RIG.N) and Halliburton Co (HAL.N) are all under scrutiny for their roles in the April 20 Deepwater Horizon rig explosion that killed 11 workers and caused the leak.

Transocean, the world's largest offshore drilling contractor which owned the Deepwater Horizon, filed papers in a Houston court on Thursday seeking to limit its legal liability to $27 million [ID:nN13273936].

THREATENED WETLANDS

Hundreds of soldiers and prison inmates have scrambled to shore up Louisiana's coastline with sandbags and thousands of feet (meters) of boom meant to hold the oil slick from the most vulnerable coastal regions.

West of the Mississippi Delta in Louisiana, oil debris have been reported on East Timbalier Island near Port Fourchon, Whiskey Island further to the west near Terrebonne Bay, and Racoon Island.

At Port Fourchon, the tip of southeastern Louisiana's La Fourche Parish and the main supply harbor for the Gulf's deepwater oil and gas industry, gooey, rust-colored globules were found washed up on a beach around sunset on Wednesday with more seen early on Thursday.

Scientists say coastal wetlands threatened by the spill, which provide critical habitat for bird life and serve as rich nurseries for the region's valuable shrimp and oyster stocks, are already dwindling from erosion and development.

Oil pollution would accelerate the process by killing the vegetation that holds the marshes together. It threatens regional economic mainstays including fishing and tourism as well as wildlife throughout the region.

"If we allow that oil to come in and touch our marshlands, that'll shut us down for about five to six years," said Rodney Dufrene, 23, a new shrimp boat owner from the hamlet of Cut Off, north of Port Fourchon, Louisiana.

Scientists are examining samples from seven dolphins and over 100 sea turtles found dead along the U.S. Gulf Coast in the past two weeks to see if they were victims of the spill, wildlife officials said on Thursday. [ID:N13119086]

Global scrutiny of the offshore oil industry could intensify after another drilling rig sank off Venezuela, although no fatalities were reported and authorities said there was no leak from the natural gas well. [ID:nN13256518]

The U.S. government response to the BP oil spill has frustrated environmental groups and Gulf Coast conservationists, who say they're getting scant information about the disaster's potential ecological effects.

"There's a lot of concern now about the marine impact and we're not getting a truly transparent response from NOAA (the National Oceanic and Atmospheric Administration)," Aaron Viles of the Gulf Restoration Network said on Thursday. [ID:nN13108169]

(Additional reporting by Deborah Zabarenko in Washington, Kelli Dugan in Mobile, Alabama, Tom Brown and Pascal Fletcher in Miami, Victoria Bryan in London and Anna Driver in Houston; Writing by Ed Stoddard and Deborah Charles; Editing by Eric Beech and Sandra Maler)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (10)
northernchick wrote:
It’s sad. Britain became our friend during the 2001 disaster and now we are angry. Let’s just try to work together. I love England. I’m so grateful for them for a lot of reasons. Let’s just solve the problem.

May 13, 2010 1:55am EDT  --  Report as abuse
pragmatism wrote:
BP is not Britain. BP is a greedbag oil company that ignored enviromental concerns and has now fouled a vital fishing area.

May 13, 2010 4:24am EDT  --  Report as abuse
bls7 wrote:
Corporate greed is responsible for nine tenths of the world’s problems, as ‘man has dominated man to his injury’.

May 13, 2010 4:58am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video