UPDATE 2-BP says relief well rig back at Gulf spill site

* Rig drilling relief well at spill site, reconnecting

* Other vessels that left for storm returning

* Upcoming week mostly preparation for static kill

(Recasts, adds detail, quotes)

By Kristen Hays

HOUSTON, July 25 (BestGrowthStock) – A rig that had been drilling a
relief well to plug BP Plc’s (BP.L: ) (BP.N: ) Gulf of Mexico oil
leak was reconnecting equipment to resume work at the spill
site on Sunday, the top official overseeing the spill response
said.

Once the last bit of pipe, or casing, is cemented in place
near the bottom of the relief well this week, BP will begin a
“static kill” the first week of August, retired Coast Guard
Admiral Thad Allen told reporters at a briefing.

“Generally the next week will be preps, making sure
everything is ready to go,” he said.

The leak remains capped after what was Tropical Storm
Bonnie disintegrated over the Gulf on Saturday.

Allen had said the static kill, which involves pumping
heavy drilling mud and cement into the well from the top, could
start three to five days after the casing is cemented in the
relief well.

He said on Sunday that the timeline was “refined and
revised” after consultations with BP.

The entire operation was interrupted last week when the
storm was bearing down on the Gulf.

While most rigs and ships left the spill site out of
caution, ships running underwater robots that provide live
feeds of the wellhead stayed and continued to operate, BP
spokeswoman Jessie Baker said.

Those feeds showed no problems with the cap, which has shut
in all flow from the leak since July 15, BP said.

A pair of Transocean Ltd (RIGN.VX: ) (RIG.N: ) rigs had been
drilling two relief wells, the second well a backup for the
first. BP suspended drilling on the second relief well July 13
so it wouldn’t interfere with the first one.

BP stopped work on the first well July 20 in advance of the
storm and put a plug inside to keep it stable until the last
round of casing could be installed.

Allen said on Sunday that the casing work will start
“sometime in the next week” once the rig reconnects to the
well, removes the plug and cleans out the hole.

While the static kill can start once the casing is in
place, the relief well will still bore into the blown-out
Macondo well near its bottom 13,000 feet (2.5 miles/4 km)
beneath the seabed, Allen said.

Kent Wells, BP’s senior vice president of exploration and
production, said in an update on BP’s website that the static
kill might plug the leak on its own. The relief well will
confirm that or finish the job, Wells said.

“Those two work in tandem,” Wells said.

And Allen said on Sunday that BP will still move ahead with
assembling a four-vessel oil-capture system that can handle up
to 80,000 barrels a day if needed.

Stock Market Research

(Reporting by Kristen Hays; Editing by Eric Beech)

UPDATE 2-BP says relief well rig back at Gulf spill site