When they drill a well the top part of the hole is a large diameter. They then put in casing (steel pipe) that is then cemented into place and the BOP's attached to the casing. When the well is completed the BOP's are removed and a well head is connected to the casing. This controls any pressure inside the pipe.
What we seem to have here is water/steam on the OUTSIDE of the casing, hence no control of the well.
you may remember a similar event where a well in Indonesia that started producing mud.
They will be able to get it under control in time but at a cost.
re latest announcement, page-13
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