It is welcome news that after the shut down on all operations in the Prudhoe Bay Field last Monday due to pipeline corrosion, BP has gained permission from pipeline regulators to keep oil flowing from a section of the oil field.
Prudhoe Bay which can produce 400,000 barrels a day is now down to 155,000 barrels a day.
At a time when hurricanes might might threaten supplies, the loss of the field stretches supplies. BP was expected to meet with regulators to assess testing results and measure "options for continuing and restoring" production. The company will decide in the next few days if it can keep the western side of the field open.
As per the the regulations set down by the Transportation Department's Pipeline and Hazardous Materials Safety Administration, BP will have to conduct 4 daily surveys of the lines which transport oil from the field to the Trans Alaska pipeline using heat sensors to spot leaks and do a visual check of the entire 22-mile network.
In addition BP will also strip the western line and conduct an ultrasonic test to get a full picture of its condition. A "significant number" of additional workers will be mobilized for this purpose.
The cost of inspection, repair and replacement of the corroded pipes inclusive of the $30 million to repair a line that leake din March is estimated at $200 million.
Exxon Mobil Corp. and ConocoPhillips, BP's partners in the Prudhoe Bay Field, have declared a force majeure on oil deliveries from the field that allows them to avoid penalties for failing to fulfil contracts due to unforseen events.
BP sais it was pleased that regulator's assessments didn't reveal anything that would require an immediate shutdown in the western section.
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