A Gulf of Mexico oil well that has been inactive for 15 years began leaking gas condensate late Monday as workers were pluggiing the well for permanent abandonment. Five workers were safely evacuated from the platform. The well is owned by Talos Energy LLC, a joint venture of Apollo Global Management LLC (NYSE: APO) and Riverstone Holdings LLC.
A report at FuelFix states that salt water containing “a small amount of gas and light condensate” started flowing from the well as workers were working on plugging it. Talos’ president told FuelFix:
In an abundance of caution, we decided to evacuate the platform and mobilize our spill response team. We are focused on the safety of our personnel while taking all appropriate measures to limit any environmental impact.
He also speculated that the age of the tubing in the well that was first developed in the 1970s may have contributed to the leak. A light sheen of oil was detected at the well-site and has been estimated to be about four miles wide by three-quarters mile long.
Workers returned to the platform today to try to bring the leaking well under control. Two other wells at the platform have been shut-in as a precaution.
The price of WTI crude spiked more than $1 a barrel in electronic trading, to $104.64 after closing physical trading at $103.53 a barrel. That most certainly appears to be an over-reaction to a leak from a well that hasn’t produced any crude in 15 years.
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