The FINANCIAL — Dialogue is ongoing between Total SA and the U.K.'s Health and Safety Executive, over a plan to board the group's Elgin platform to stem a gas leak there, a spokesman for the oil major said.
"The group is pursuing its dialogue with the HSE over the different aspects of the intervention on site," the spokesman said.
By law, Total is requested to send a comprehensive risk assessment to the HSE before returning to the platform. The HSE can quiz Total and add questions before giving an opinion. The HSE doesn't give permission to put people on board; the ultimate responsibility lies with the company.
Total, in a statement, explained that it is "working in cooperation with the Health and Safety Executive to agree conditions under which regaining access to the Elgin platform can be undertaken safely."
According to Borsa Italiana – London Stock Exchange Group, the group is still making preparations to end the leak, the spokesman said.
Specialized crews from Wild Well Control–the company made famous for helping tackle the Gulf of Mexico oil spill and Kuwait's raging oil fires–are expected to board the abandoned platform in "one or two days," Total spokesman Andrew Hogg said Sunday. Once aboard, they will conduct an initial reconnaissance before attempting to secure the area so workers can safely begin a "top kill" operation, where heavy mud is dropped into the problem well in the hope that sufficient downward pressure is exerted to stop the flow of gas.
In the statement, Total said that once the platform is accessed, advanced preparations for controlling the well can proceed, adding it has identified and is sourcing the necessary support vessels.
"Two suitable vessels have been chartered, one boat and one rig," Total said.
Another option is to drill relief wells–to inject cement and mud and clog the well ahead of the leaking point–although this could take as long as six months to complete. Initial relief drilling work is expected to begin around April 8, said Hogg.
Total said it has already mobilized two rigs to drill these wells and that both will move to Elgin on final suspension of current operations. The first rig is the Sedco 714, currently drilling on the Fettercairn field, 400 kilometers north of Elgin. The second, the Rowan Gorilla V, is currently drilling on the West Franklin field just six kilometers from Elgin.
Other drilling rigs are also being considered, Total said.
Two other vessels are also standing by on location, awaiting optimum sea conditions before they can be deployed, Total said. One is a remote operate vehicle deployment vessel, which can carry out underwater inspections in the location of the platform; the second is a similar vessel, which can conduct seabed surveys of possible locations for relief wells.
Reconnaissance and monitoring of the site by aircraft and fire fighting vessels continues, Total said.
On March 25, during an operation to kill a well, a major gas leak was detected, forcing Total to evacuate its employees and power down the Elgin platform. A flare, kept burning as part of a safety scheme to tame gas pressure, extinguished Friday, allowing the group to consider sending men back to the structure to address the leak.
The news and the potential effect on Total's output and financial performance took the company's share price down more than 6% last week. This has since improved on hopes of a quicker resolution than initially estimated. Monday at 1200 GMT, shares in Total were trading up 0.9%, at EUR38.59, while the CAC-40 benchmark index was down 0.6%.
Total's chief financial officer, Patrick de la Chevardiere, is expected to hold a conference call with analysts from 1300 GMT.
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