BOEMRE estimates BOP inspection costs under new rules

Oil and gas producers drilling wells on the US Outer Continental Shelf can expect to pay $25,000-250,000, or an average $112,500, for independent third-party inspections and design reviews of blowout preventers (BOPs) under new regulations, the US Bureau of Ocean Energy Management, Regulation, and Enforcement said.

Nick Snow
OGJ Washington Editor

WASHINGTON, DC, Oct. 19 -- Oil and gas producers drilling wells on the US Outer Continental Shelf can expect to pay $25,000-250,000, or an average $112,500, for independent third-party inspections and design reviews of blowout preventers (BOPs) under new regulations, the US Bureau of Ocean Energy Management, Regulation, and Enforcement said.

It provided the estimate in an information collection request appearing in the Oct. 19 Federal Register. The requirement was part of Notice to Lessees No. 5 that BOEMRE issued on June 8 following the Apr. 20 Macondo well blowout and Deepwater Horizon semisubmersible explosion that killed 11 workers, and subsequent crude oil spill into the Gulf of Mexico.

BOEMRE will accept comments on the ICR, which it plans to submit to the White House Office of Management and Budget for review and approval, until Dec. 20. OMB already has approved most of the requirements outlined in NTL No. 5, BOEMRE said.

Contact Nick Snow at nicks@pennwell.com.

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