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:
- 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.
- 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
Bud's Offshore Energy (BOE) 