Wednesday, March 23, 2011

Exxon (XOM) Awarded Gulf Drilling Permit

Exxon Mobil (NYSE:XOM) has finally been approved a permit to resume drilling in the Gulf of Mexico by the Interior Department. It's the fourth Gulf permit awarded since the BP (NYSE:BP) Gulf oil spill.

The company was awarded the permit after it complied with new safety drilling regulations imposed by the department after the Gulf spill, including satisfying the requirement that the company be able to contain a blowout at an underwater well.

Exxon plans to use a containment system from the Marine Well Containment Co, marking the first time that a containment device was approved in a drilling permit.

The permit will allow Exxon to drill a new well in its Hadrian North project in the Keathley Canyon Block, located in nearly 7,000 feet of water about 240 miles off the Louisiana coast.

Exxon closed Tuesday at $82.56, falling $0.28, or 0.34 percent.




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