ExxonMobil Corp. (XOM) announced an agreement to add BP plc (BP) as a new member to the proposed Marine Well Containment Company (“MWCC”), which will be formed as a non-profit making organization.
 
Under the terms of the agreement, BP’s equipment will be available to all oil and gas companies operating in the Gulf of Mexico (GoM). Importantly, this announcement came just two days after BP’s blown-out Macondo well was permanently sealed.
 
Exxon is taking the lead in setting up MWCC partnered with Chevron (CVX), ConocoPhillips (COP) and Shell (RDS.A). These companies are accelerating engineering, construction and deployment of equipment designed to improve capabilities that can contain future underwater leakages in the GoM.
 
The new system will be flexible, adaptable and capable of beginning mobilization within 24 hours and becoming fully operational within weeks. It will have the capacity to work in depths up to 10,000 feet and contain 100,000 barrels of oil per day, with a room for expansion.
 
Moreover, MWCC will utilize BP’s recent experience from the GoM response. BP vice president for the GoM operations, Richard Morrison, said BP is happy to join such team of major integrated companies for this good cause.
 
Deep-water drilling in the Gulf has been shut down by a moratorium imposed by the Obama administration shortly after the BP’s Macondo well blast. We believe that the creation of such a non-profit making organization is undoubtedly a welcome development as the GoM is an important area of operation for industry players.
 
BP PLC (BP): Free Stock Analysis Report
 
CONOCOPHILLIPS (COP): Free Stock Analysis Report
 
CHEVRON CORP (CVX): Free Stock Analysis Report
 
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis Report
 
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
 
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