Helix Well Containment Group Brings Together Industry, Government for Comprehensive Drill

HOUSTON--(BUSINESS WIRE)--Today, the Helix Well Containment Group (HWCG) brought together more than 225 technical professionals from the oil and gas industry for a comprehensive, day-long tabletop exercise designed to increase members’ coordination and preparedness in the event of a subsea well containment incident. HWCG is a consortium of 23 deepwater operators in the Gulf of Mexico who have come together with the common goal of expanding capabilities to quickly and comprehensively respond to such an incident to protect employees, communities and the environment.

“As a result of these drills, we can expedite our decision-making process and optimize the utilization of our plan.”

“While we do not anticipate an incident, we are committed to maximum preparedness to ensure rapid response and containment of a deepwater oil spill. Collaboration is critical to our readiness, and that is why the Helix Well Containment Group has conducted two tabletop exercises in the past three weeks,” said Roger Scheuermann, commercial director for HWCG. HWCG is planning to conduct a third tabletop exercise in late May.

With guidance from the Bureau of Ocean Energy Management, Regulation and Enforcement, the group developed the HWCG Well Containment Plan, a comprehensive and detailed technical plan that clearly identifies response protocols for foreseeable deepwater containment scenarios.

“Bringing together the industry’s brightest and most experienced deepwater personnel, this drill tested our ability to activate the HWCG Well Containment Plan,” said Tim Sargent, chair of the HWCG Technical Committee. “As a result of these drills, we can expedite our decision-making process and optimize the utilization of our plan.”

The day-long drill included representatives from HWCG’s 23 member companies and 30 service providers, and government officials. It included a review of the capabilities of the HWCG member companies and contractors who provide essential services as outlined in the Well Containment Plan.

HWCG has signed an agreement with Helix Energy Solutions Group (NYSE: HLX), which will provide the primary components of the well containment response system. Building upon Helix-owned equipment effectively used in the Deepwater Horizon response, the system is currently capable of facilitating control and containment of spills in water depths up to 5,600 feet and features a 10,000 psig capping stack. By April 8, the system will substantially increase its containment capacity, expanding its capabilities to water depths up to 8,000 feet and capture and processing capabilities of 55,000 barrels of oil per day and 95 million cubic feet of gas per day. In the coming weeks, HWCG will also add a 15,000 psig capping stack. Full operational capability for water depths of up to 10,000 feet is anticipated mid-summer 2011.

Recently, the U.S. Department of the Interior approved four deepwater drilling permits in the Gulf of Mexico for HWCG members Noble Energy, BHP Billiton, ATP Oil & Gas Corporation and Statoil Gulf of Mexico LLC (Statoil USA E&P, Inc.). This week, HWCG also increased its membership to 23 deepwater oil and gas operators.

About Helix Well Containment Group

The Helix Well Containment Group (HWCG) is a consortium of 23 deepwater operators in the Gulf of Mexico who have come together with the common goal of expanding capabilities to quickly and comprehensively respond to a subsea spill to protect employees, communities and the environment. Bringing together the technical expertise and resources from this diverse group of operators, and building upon equipment tested and proven in the Deepwater Horizon response, the HWCG has developed a deepwater well-containment response system capable of being immediately deployed in the event of a deepwater spill. Each HWCG member company has committed to a mutual aid agreement, allowing any member to draw upon the collective technical expertise, assets and resources of the group in the event of an incident.

HWCG Members

HWCG is made up of a diverse and experienced group of deepwater operators, representing two-thirds of the deepwater operators in the Gulf of Mexico and approximately half of all deepwater oil and natural gas production in the Gulf of Mexico.

Anadarko Petroleum Corporation • Apache Deepwater LLC • ATP Oil & Gas Corporation

BHP Billiton (Americas), Inc. • Cobalt International Energy, LP • Deep Gulf Energy, LP (Deep Gulf Energy II LLC)

ENI U.S. Operating Company • Energy Resource Technology GOM Inc. • Hess Corporation

LLOG Exploration Company, LLC • Marathon Oil Company • Marubeni Oil & Gas (USA) Inc.

Murphy Exploration & Production Company – USA • Newfield Exploration Company • Nexen Petroleum USA Inc.

Noble Energy, Inc. • Plains Exploration & Production Company • Repsol E&P USA Inc.

Statoil Gulf of Mexico LLC (Statoil USA E&P, Inc.) • Stone Energy Corporation • Walter Oil & Gas Corporation Woodside Energy (USA), Inc. • W&T Offshore, Inc. (W & T Energy VI, LLC)

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