BHP Billiton’s oil and gas division says its Neptune oil operation in the Gulf of Mexico will undergo further repairs after studies uncovered structural problems with the platform.
The facility, which was supposed to produce 50,000 barrels per day, was originally slated to start production by the end of December. This was pushed until the end of March because of structural “anomalies”. This latest development will push the start of first production back to the end of June.
The discovery of structural defects in March forced workers to evacuate the platform. A detailed analysis by the builder in this latest incident determined that part of the support structure inside the hull pontoons required additional reinforcement.
According to BHP, which holds a 35% stake in the facility, repairs are already underway. It does not expect a cost blow-out because of warranty obligations on the part of the engineering contractor.
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