BHP Billiton gets approval for Gulf of Mexico

May 18, 2011 | Government & Regulations

BHP_Billiton_Petroleum U.S. regulators gave approval to BHP Billiton to explore for oil in the Gulf of Mexico, the third such award since a drilling moratorium was lifted.

The U.S. Bureau of Ocean Energy Management, Regulation and Enforcement announced that it approved BHP Billiton’s plans to drill in the Mad Dog prospect in the gulf. It’s the third time the BOEMRE gave its approval since a moratorium on drilling the gulf was lifted in October.

Shell was the recipient of the first two BOEMRE licenses in the Gulf of Mexico that were awarded after the gulf oil disaster.

BHP Billiton won approval for an exploration well about 125 miles off the coast of Louisiana in 4,470 feet of water, the Platts news service reports.

The BOEMRE said the BHP Billiton approval marked the first time a site was scrutinized under new standards enacted after last year’s oil disaster in the Gulf of Mexico.

The Deepwater Horizon oil rig caught fire and sank in April 2010, killing 11 workers and resulting on one of the worst oil spills in the history of the industry.

The BOEMRE approval comes as U.S. lawmakers bicker over the right to explore for more oil on the U.S. continental shelf.