Exxon to provide undersea well-containment gear

The Associated Press September 20, 2010, 6:02PM ET

HOUSTON

Exxon Mobil Corp. said Monday it would provide underwater well-containment equipment to an oil industry group as part of BP PLC's plan to join the organization.

Exxon said BP equipment would be made available to all oil and gas companies operating in the Gulf of Mexico as part of the deal.

Exxon is taking the lead in setting up the group, called the Marine Well Containment Co., with backing from Chevron, ConocoPhillips and Shell. The companies hope to demonstrate that the oil industry can handle the next big spill.

Deep-water drilling in the Gulf has been shut down by a moratorium imposed by the Obama administration shortly after the BP blowout a mile below the surface, which spawned the worst offshore oil spill in U.S. history, at 206 million gallons. Administration officials have cited the need for assurances that future spills like the BP disaster can be contained.

Oil industry officials have said that Marine Well Containment will build a system that could be put in place within 24 hours of a spill in the Gulf.

Exxon said a project team set up by Marine Well Containment's founding companies will use BP technical personnel with experience in fighting the BP blowout that started in April.