Oil and gas companies keep eye on Gulf of Mexico hurricane

BHP and Byron Energy have suspended their operations in the Gulf of Mexico due to severe weather forecast for Hurricane Marco and Tropical Storm Laura.

According to Reuters’ report on Monday, BHP was ramping down operations at its Shenzi and Neptune oil platforms in the Gulf of Mexico ahead of back-to-back storms moving into the region.

A BHP spokesperson outlined that evacuations started on Saturday, with evacuations finished at its Titan oil-production platform and shut-in oil production at the facility by Sunday.

Reuter confirmed that oil producers including BP, Chevron and Royal Dutch Shell had shut 13 per cent of the region’s offshore oil production as of Saturday.

Byron has prepared for the evacuation of the Enterprise Offshore Drilling 264 jack up rig from the South Marsh Island 58 G2 (SM58 G2) well.

The company also safely transported all personnel, including offshore operating staff, to shore until it is safe to return. Production was shutdown on Sunday morning until it is deemed safe to return to current levels.

The SM58 G2 well was spudded in July and reached a depth of 4020 feet measure depth (MD), with the well to be drilled to a total depth of 11,565 MD.

Operations and production from Byron’s operated SM71 F platform have also been suspended due to the weather warnings.

Byron is the operator of the SM71 platforms and owns a 50 per cent working interest and a 40.625 per cent net revenue interest in the block, with Otto Energy holding the remaining.

Byron chief executive Maynard Smith said it was unfortunate that the company had to evacuate the rig, but the company was at a point in the SM58 G2 well where it could be accomplished safely and smoothly.

“We will do everything we can to minimise this interruption, but safety is always our number one priority,” Smith said.

“It is very unusual to potentially have two hurricanes in the Gulf of Mexico at the same time and our drilling and production teams have done an excellent job reacting to this unique situation.”

The company is also on track to start up production from the SM58 1 well early in September without any more weather delays.

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