Bud's Offshore Energy (BOE)

BSEE’s temporary abandonment/decommissioning solicitation has been posted. Some details:

• 14 wells to be decommissioned
• 1 well to be checked to confirm temporary abandonment
• Well depths: 2359′ to 11934′
• Water depths: 70′ to 477′
• 11 gas wells, 3 oil wells
• Well completion dates: 2006-2008
• Last production: 2010-2013 (Presumably, the short productive life of these wells either contributed to or was because of the lessees’ bankruptcies.)
• $25,000😀 minimum to $100,000,000 maximum contract guarantee

If I was an offshore contractor, I wouldn’t touch this work without:

1. Ironclad liability protection after the work is completed and inspected. A contractor should not inherit the perpetual liability that the lessees knowingly and willfully accepted when they purchased the leases and conducted operations; nor is the contractor responsible for the failure of industry and government to establish a financial assurance framework that protects the taxpayer from such liabilities.
2. Protection against likely cost overruns related to the uncertain downhole condition of the wells.

Previous posts on this matter:

Taxpayer funded decommissioning – troubling precedent for the US offshore program

NOT a shining moment for the offshore industry