Feds approve deepwater drilling permit for new area in the Gulf

Feds approve deepwater drilling permit for new area in the Gulf

Date: Mar 30, 2011

Feds approve deepwater drilling permit for new area in the Gulf

Federal regulators have granted a permit for a deepwater well in a new area of the Gulf of Mexico located about 137 miles off the Louisiana coast. Last week the government approved Shell Offshore's exploration plan for the new area. On Wednesday, the first well in that new area was given the go-ahead.

The approved permit gives Shell the green light to drill a new well in Garden Banks Block No. 427, about 2,721 feet below the seabed, the Bureau of Ocean Energy Management, Regulation and Enforcement said in a statement.

BOEMRE said Shell has contracted with the Marine Well Containment Company to use its capping stack to stop the flow of oil if a well control event occurs. As part of its approval process, BOEMRE said it reviewed Shell's containment capability available for the specific well proposed in the permit application and confirmed that the capabilities of the capping stack met the requirements specific to the proposed well's characteristics.

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