Spokesman says BP project off Alaska likely delayed amid increased scrutiny after Gulf spill

BP project off Alaska likely delayed til next year

JUNEAU, Alaska — A BP spokesman said Wednesay that a company drilling project off Alaska will likely be delayed until next year after calls for increased state and federal scrutiny in the wake of the Gulf Coast oil spill.

Spokesman Steve Rinehart said that in the interest of allowing for comprehensive agency reviews, BP LLC felt it best not to try to stick to a firm drilling schedule. The company had hoped to drill the first development well for its Liberty project this fall.

Rinehart said BP believes in the project and will cooperate fully with any government review, with the hope that drilling can begin next year. He said the company has not yet applied for drilling permits.

The project has generated considerable attention and discussion, particularly since the April 20 explosion of a BP-leased oil rig in the Gulf of Mexico that killed 11 workers and unleashed a still-uncontained oil slick.

U.S. Sen. Frank Lautenberg, D-New Jersey, has asked federal officials to halt the Alaska project pending an investigation of the Gulf spill, a new review of the Liberty project and implementation of revised drilling rules and regulations.

Several environmental groups also have sought federal denial of a drilling permit, claiming the Gulf incident called into question BP’s assurances about safety and response capability.

U.S. Sen. Mark Begich, D-Alaska, called attempts to stop the project “short-sighted” and comparisons to the Gulf unfair. He said the Alaska project had already been subject to “some of the most intense government and public scrutiny of any oil development project in America.”

The development in Alaska is exempt from a federal moratorium on all deepwater oil exploration after the Gulf disaster because it is technically a land-based or onshore operation.

BP planned to tap an estimated 100-million barrel oil reservoir off the coast by using a company-built gravel island as a drilling base. The rig would drill horizontally for six to eight miles in a tactic criticized by some as dangerous considering what happened in the Gulf.

The Gulf spill also has caused federal and state agencies to review their regulations.

A U.S. Interior Department spokeswoman said last week that officials would look for such things as oil spill response and blowout prevention plans when reviewing drilling permit applications.

The Alaska Oil and Gas Conservation Commission is reviewing whether there are any gaps in its existing regulations.

Commissioner Cathy Foerster said Wednesday the review isn’t geared toward any specific project, though officials could tack on additional requirements to drilling permits if the inquiry discovered a need to do so.

Among other things, the state review is expected to look at whether current requirements for blowout prevention equipment is adequate and whether the commission should require companies drilling offshore or “ultra-extended reach wells” to be able to drill a relief well if necessary.