BP’s (BP) chief operating officer announced on Friday that the company could deploy its ‘top kill’ solution to the Macondo oil leak as soon as tomorrow (Tuesday).
The company will pump special drilling mud to the leaking well’s blowout preventer, followed by cement aimed at sealing the well and stopping the flow of oil. According to Rigzone, while this technique is well established in the industry, this will be the first time it is done at a depth of 5,000 feet, which can present unique challenges.
BP will be an interesting stock to watch this week based on the potential for success. The stock kept falling through last week, showing little expected enthusiasm about this latest repair attempt priced-in.
There’s also a lot of good things happening for BP, despite the horrible situation in the gulf.
BP brought seven major projects onstream in 2009, including three projects that came online ahead of schedule. In the GOM, BP ramped up production at Thunder Horse to more than 300,000 boe/d. Thunder Horse is now the largest single producing field in the GOM, bumping up GOM production from 240,000 boe/d in 2007 to more than 400,000 boe/d in 2009.BP also started production at Dorado and King South in May 2009, and Atlantis Phase 2 in Q4 2009.
BP reported two major projects started up in Q1 2010. The major participated in the start-up of Great White in the GOM. The field came online in late March 2010… BP also started production onshore Canada. The Noel project started exporting and selling gas earlier this year.
See the full company-specific analysis for BP at Rigzone here, then check out how the trade is open for both BP and Transocean (RIG) here.
Note: The author does not own securities related to BP or RIG, but investors he speaks or works with may.