Big Dog's Boom Boom Room Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Big Dog	7/12/2005 9:15:27 AM
	Read Replies (1) of 206338

Pickering on Thunder What we know about Thunder Horse (BP - $66.43 – NR): · What is Thunder Horse? High profile deepwater project for BP (75% owner) and XOM (25%). 6000’ of water, east of New Orleans in Mississippi Canyon. Start-up expected late Q3, early Q4. Targeted at 200-250kbopd oil, 200mmcf/day gas. Small relative to BP’s ~4mmboepd production. Non-trivial component of near-term growth profile. Massive semisubmersible platform (big enough to sleep over 225 people). Nice overview provided by BP website: bpissuenews.com Detailed construction history via April 2005 company magazine: bp.com · Damage: Although BP has not discussed directly, we have talked with several oilpatch sources on this topic. Indications are problems not caused directly by storm. A big piece of equipment that was being removed as precaution for hurricane fell during removal, damaging portion of support that helps keep vessel afloat (either columns or pontoons). Equivalent of dropping very big hammer on your toe. As of last night, appeared facility still taking on water…so sinking is very real possibility. · What lies below? At least 3 wells had been pre-drilled and there are a number of manifolds and pipeline tie-ins in the general Thunder Horse area. Risk of Thunder Horse sinking on top of these is real, but likelihood that it causes a problem is probably low. · Impact: Doesn’t look like Dennis did damage to other platforms / facilities offshore. If Thunder Horse doesn’t sink, at a minimum it will need to be repaired (perhaps at Ingleside, TX facility where topsides were installed). Work on something this huge doesn’t happen overnight…so have to expect best case is delay of 3-6 months. No immediate impact to crude markets, but deferral of Q3/Q4 crude supply of 25-45mmbbls. Worst case is back to the drawing board which would take years. Checking with equipment suppliers (FTI for wellheads) to determine if negative timing impact to Q2 or Q3.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next