* Permit goes to BHP Billiton for work at Shenzi
* Like first permit, is for resumption of drilling
(Adds background, details)
By Bruce Nichols
HOUSTON, March 12 The U.S. government has given
BHP Billiton (BLT.L) the second new permit to drill in the Gulf
of Mexico since the Macondo oil spill, the Bureau of Ocean
Energy Management said on Saturday.
A BHP spokesman confirmed that the new permit has been
issued for resumption of drilling of a production well at
"We are very pleased to be resuming work," BHP spokesman
Ruban Yogarajah said.
The well was being drilled in waters 4,234 feet (1,290
metres) deep, 120 miles (193 km) off the Louisiana coast south
of Houma, at the time BP's (BP.L) Macondo well blew out in
April 2010. The Macondo blowout, about 150 miles (241 km)
northeast of Shenzi, triggered the worst U.S. marine oil spill.
Eleven workers died.
After the blowout, the U.S. government imposed a moratorium
pending new rules to increase the safety of offshore drilling.
The moratorium was lifted in October but it took several months
to issue the first permit.
The U.S. Bureau of Ocean Energy Management on Feb. 28
issued the first new permit since the lifting of the moratorium
to Noble Energy (NBL.N). At the time, BOEM said more permits
would be awarded soon.
Shenzi, located in Green Canyon Blocks 653, 654, 609 and
610, was discovered in 2002 and has been in production since
March 2009. The newly approved well is a continuation of
production development in the field.
BHP is the operator, with 44 percent ownership. Hess Corp
(HES.N) and Repsol (REP.MC) are partners, each with 28 percent
BP, driller of the doomed Macondo well, was a partner in
Shenzi but sold its interest to Repsol in 2006.
BHP puts Shenzi platform's maximum production capacity at
100,000 barrels of oil and 50 million cubic feet of natural gas
(Editing by Vicki Allen)