Floating, production, storage and offloading vessels (FPSOs) can now operate in the Gulf of Mexico. But why is nobody filing for the first permission? Regional director Chris Oynes of the US Minerals Management Services explains the conditions for the use of FPSOs.
There are hurdles for the industry. In practice, flaring of gas will be prohibited and re-injection will only be allowed if the operator can document technically feasible plans of retrieving the gas at a later date. Flaring requirements will be the same as for any other oil or gas-well gas produced in the Gulf of Mexico. Operators may flare oil-well gas for 48 continuous or 144 cumulative hours in a month without MMS approval in the event of production equipment emergencies. Flaring of oil well gas beyond 48 continuous or 144 cumulative hours in a month will require MMS approval.
Says Oynes, Our task here is the conservation of resources. It has been our mandate by law since 1978. We are not going to let the gas reserves be burned because the storage and transportation technology is not good enough. That said, we want to co-operate closely with the industry when operators are ready to put FPSOs to use here. Maybe our reluctance to allow flaring may trigger some technological inventions.
No environmental damage
Adds Oynes, Having performed a thorough environmental impact statement (EIS), we can provide information that might lessen concern for the environmental aspects in a broad sense. We would not have allowed the use of FPSOs had it been damaging to the environment.
We suggest the operators planning use of FPSOs come to us at a very early stage so that we can clarify what they should take into consideration. Then we will work closely with them from the design stages through to commissioning, using the model in the EIS as the basis.
Evacuation in the Gulf of Mexico is not only mentioned in safety plans, it is a re-occurring event due to the hurricanes that frequently sweep through the area, posing a serious threat to any form of installation or floating unit. This has been one of the MMS concerns and use of proper design criteria is essential.
Ageing rigs at risk
Oynes explains, Fixed platforms are kept longer and used for more tasks than before, and the MMS encourages that. But we must consider how maintenance of the platforms is carried out, especially in light of many ageing installations showing significant signs of wear. Some operators, not all, follow the letter and the spirit of the law and adequately maintain their assets. We want to give the industry a chance to take the initiative before we come up with more regulations. If players in the industry are able to come up with satisfactory platform maintenance and safety regimes, these will be supported. If they fail, tough requirements will certainly follow.
Risk-based inspection is one way to deal with the maintenance and safe operation of ageing platforms. We want the industry to come and discuss such plans with us, but in principle such inspection planning is the right way to manage the maintenance, condition and risks of ageing platforms.