International Multilateral Offshore Drilling Conferences

1. International Multilateral Offshore Drilling Conferences Bradford L Benggio, SSC NOAA Bob Pond USCG

2. NOAA OR&R Supports Third Regional OPRC Forum on Oil Spill Prevention, Preparedness and Response in the Gulf of Mexico and the Caribbean Participated as part of the US delegation for the third Regional OPRC Forum on oil spill prevention, preparedness and response in the Gulf of Mexico and the Caribbean in Kingston, Jamaica 11-13 April 2012.   This initiative is being hosted by REMPEITC, the training and education arm of IMO throughout the Caribbean and led by the US Coast Guard. Participating countries included Bahamas, Cuba, Guyana, Jamaica, and Mexico.  NOAA has provided technical and scientific support throughout the conferences. The initial conference was held in the Bahamas in December 2011, followed by a second conference in Curacao last February.  

3. NOAA OR&R Supports Third Regional OPRC Forum on Oil Spill Prevention, Preparedness and Response in the Gulf of Mexico and the Caribbean NOAA has provided presentations on oil spill modeling, Shoreline assessment and cleanup, and key response tools and considerations for the primary oil spill response phases.   This most recent conference centered around a scenario-driven table top exercise that was designed to facilitate discussions and identify future needs with regard to response planning, spill prevention, coordination, and capabilities.  Issues, shortfalls, and identified future work were identified to be addressed at future meetings.   Another meeting is being tentatively planned to be held in Yucatan, Mexico later this summer.

4. OFFSHORE DRILLING EXPLORATIONIN CARIBBEAN WATERS – SUMMARY UPDATE – USCG Multilateral Planning Activities International Coordination under auspices of International Maritime Organization Multilateral forums –Response-focused Regional Oil Pollution Prep, Response, and Cooperation seminars sponsored by IMO: • Dec – Host – The Bahamas • Jan-2 Feb – Host – Curacao • Apr – Host – Jamaica • Late Aug/early Sep – Host – Mexico

5. OFFSHORE DRILLING EXPLORATIONIN CARIBBEAN WATERS – SUMMARY UPDATE – USCG Background • Cuba is partnering with oil companies for exploratory drilling on its continental shelf (CS) within its Exclusive Economic Zone (EEZ). • Foreign firms have signed exploration and production agreements for 30% of the 59 blocks.

6. OFFSHORE DRILLING EXPLORATIONIN CARIBBEAN WATERS – SUMMARY UPDATE – USCG Current Drilling Activities • Repsol, Spanish oil company began drilling, using Bahamian-flagged Mobile Offshore Drilling Unit (MODU) Scarabeo-9 to drill exploratory well. CG/BSEE Rig conducted courtesy visit to compliance w/Intl Stds In Feb. • Repsol will complete drilling ops in mid-May. Petronas (Indonsia) will drill next followed by PDVSA and then a Russian owned company. • Cuban officials have agreed it is essential that US have viz on drill company response plans and will directed those companies to provide plans to CG and BSEE for review. We have Repsols plans and are in contact with Petronas.

7. OFFSHORE DRILLING EXPLORATIONIN CARIBBEAN WATERS – SUMMARY UPDATE – USCG Current Drilling Activities – Continued • The Russian well will not be in deep water and will not use the Scarabeo 9 as a drilling platform. • Bahamas has a moratorium in place, but is considering offshore drilling. • It is estimated that a spill in the Cuba offshore would enter Gulf Loop Current, and oil could reach US waters in 2-3 days & FL shorelines in 5-10 days. • Worst Case Discharge at 75 k bbls/day.

8. OFFSHORE DRILLING EXPLORATIONIN CARIBBEAN WATERS – SUMMARY UPDATE – USCG Regional/Local Planning Activities Local, Regional and National level Contingency planning: • Obtained access to and reviewed Repsol Oil Spill Response Plan; • Updated Area Contingency Plans & Geographic Response Strategies, significant engagement with local communities; • Developed an Offshore Contingency Plan to address Cuba/Bahamas Drilling Contingency; • Region IV Regional Contingency Plan updated; and • Tabletop Exercises held in 2011.

9. OFFSHORE DRILLING EXPLORATIONIN CARIBBEAN WATERS – SUMMARY UPDATE – USCG National Level Interagency Activities • Under NSS direction five IPC/DC Mtgs to date. • BIS and OFAC Licensing - Commerce, Treasury - License approved for CG to direct US public and private response resources as needed in Cuba offshore waters. • NOAA/BSEE validated oil spill WCD & Trajectory Modeling.

10. OFFSHORE DRILLING EXPLORATIONIN CARIBBEAN WATERS – SUMMARY UPDATE – USCG Challenges • Possible fully federalized response (no RP). • Removal/Response Costs: Oil Spill Liability Trust Fund (OSLTF) has modest limits and is not funded to deal with 3rd party claims (like BP post DWH). • Challenges in direct engagement w/ gov officials in Cuba for coordination. • Closing response resource and well control gaps.

11. OFFSHORE DRILLING EXPLORATIONIN CARIBBEAN WATERS – SUMMARY UPDATE – USCG Next Steps / Action Items • NSS enthuisatic support for continuing IMO multilateral forums to develop written response procedures. • USCG will continue to lead Interagency support to multi-lateral planning forums, review of drill plans and monitore drilling activities and engageet with BSEE, BIS/OFAC and DOS to ensure response resources remain in place and available. • Congressional Outreach will also continue as appropriate.