Shell Said to Have Most Rigs Affected by Deep-Water Pause; Nexen Has One

Royal Dutch Shell Plc operates 5 of the 33 deep-water drilling rigs in the Gulf of Mexico that must halt operations under the Obama administration’s moratorium, an official of the Minerals Management Service said.

Shell, Europe’s largest energy producer, operates more of the exploratory wells that any other company, the official, who asked not to be identified discussing the specific companies, said yesterday in an e-mail. Three companies with three rigs apiece are Eni SpA, Marathon Oil Corp. and Anadarko Petroleum Corp. MMS is part of the U.S. Interior Department.

President Barack Obama extended a moratorium May 27 on deepwater offshore oil drilling permits, delayed planned exploration in the Arctic off Alaska and canceled a plan to search for oil and gas off the Virginia coast in response to the spill from a BP Plc well in the Gulf.

BP, Chevron Corp. and Statoil ASA each operate two floating rigs affected by the policy, the official said. Three other companies also have two: Noble Corp., Devon Energy Corp. and BHP Billiton Ltd. Each of seven companies have one affected rig.

The administration is “pausing” deepwater drilling “to ensure this type of disaster doesn’t happen again,” Interior Secretary Ken Salazar said on a call with reporters May 27. The government will be cautious about further development of the outer continental shelf, he said. Operations in waters in depths of less than 500 feet are exempt from the moratorium.

The 33 deep-water wells are in various stages of drilling, and those begun will be allowed to continue operations until it’s safe to stop, Salazar said. If drilling hasn’t begun, the companies won’t be allowed to drill, he said.

“They need to get to a safe horizon in the geology to secure the well,” Salazar said. “The activity will proceed to the point that the wells themselves can be secured.”

A list of 33 deep-water Gulf of Mexico floating rigs affected by the Obama administration’s drilling moratorium as of May 26, according to an official with the Minerals Management Service:

Royal Dutch Shell Plc (5 rigs)
Eni SpA (3)
Marathon Oil Corp. (3)
Anadarko Petroleum Corp. (3)
Statoil ASA (2)
Chevron Corp. (2)
Noble Corp. (2)
Devon Energy Corp. (2)
BP Plc (2)
BHP Billiton Ltd. (2)
Hess Corp. (1)
LLOG Exploration Co. (1)
Walter Energy Inc. (1)
Petroleo Brasileiro SA (1)
ATP Oil & Gas Corp. (1)
Newfield Exploration Co. (1)
Nexen Inc. (1)

To contact the reporter on this story: Jeff Plungis in Washington at jplungis@bloomberg.net.

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