69afterbp

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Unformatted text preview: and MOEX approved the operation and expenditures. 53 BP sought its first supplemental AFE for approval of an additional $27.9 million in January 2010, which the partners accepted in February 2010. 54 In March 2010, BP sought authorization for an additional $27 million, explaining that it had exceeded the first supplemental AFE due to unexpected lost circulation and well control events. 55 Anadarko and MOEX approved the expenditure and offered no alternative operating plan. 56 On April 14, after BP had drilled to the Macondo well’s revised target depth, it sought a final AFE for $3.5 million to fund setting the production casing in connection with the temporary abandonment of the well. Anadarko and MOEX approved the AFE and did not propose any alternative operating plan. 57 In total, the companies allocated $154.5 million to drilling the Macondo exploratory well, an amount well in excess of the original estimated cost of $96.16 million and the not‐to‐exceed cost of $139.5 million. Under their operating agreement with BP, Anadarko and MOEX had access to, and in fact reviewed, data and files related to the Macondo well t...
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