BP (NYSE:BP) Stops Work on Alaska's Liberty Oil Project

Citing a number of problem which have arisen in relationship to their work on developing the Liberty oil field, BP (NYSE:BP) has suspended work for now, saying the will launch a broad engineering review of the huge drilling rig before proceeding with the development.

According to BP, a number of issues have arisen during the constructing of the drilling rig, which is being assembled on a man-made island in the area.

BP spokesman Steve Rinehart said, “We’ve gotten to the point that we need to step back, take a time out and make sure that all of these systems, including some critical safety systems, are just like they need to be.”

“It’s a really important project ... it has to be done right,” added Rinehart.

Among the systems to be scrutinized by engineers will be safety and ventilation systems, power systems and mud control.

At peak production Liberty is expected to produce about 40,000 barrels of oil a day.