Gulf of Mexico Offshore Update-2.2.17
The maritime injury lawyers at Morrow & Sheppard LLP monitor developments offshore Gulf of Mexico.
This month, our update will cover a fire that broke out on a platform offshore Louisiana, oil company Hess’s big budget bet on Gulf of Mexico drilling, and optimism in the offshore supply vessel market that things are finally looking up.
Fire Breaks Out On Offshore Platform
An offshore fire broke out on a Gulf of Mexico platform on January 5, 2017. The incident was first reported around 2:30 in the morning.
The platform, owned by Renaissance Offshore LLC, is located about 80 miles off the coast of Grand Isle, Louisiana.
Four personnel aboard the platform had to be evacuated to the M/V Mary Wyatt Milano, a supply vessel. They were ultimately taken to Terrebone General Hospital for observation.
Four different boats and an HC-144 Ocean Sentry airplane were required to put out the blaze.
“We can’t get it out!,” workers cried:
— Michele (@seachele420) January 5, 2017
Renaissance Offshore LLC is a Houston, Texas based offshore company. The describe their mission as:
“Identifying and acquiring under-developed assets with upside potential in the Gulf of Mexico is what Renaissance Offshore is all about. Through targeted acquisitions and negotiated sales, we are focused on building and maintaining our portfolio of assets placing a strong emphasis on oil production. We believe that significant opportunity remains for enhanced recovery from existing fields and infrastructure on the Shelf.
Our acquisitions are targeted at older, legacy fields where we can REVIVE production using our vast knowledge as an operator in the Gulf. Combined with a tremendous equity partner in Quantum Energy Partners, our management team has a proven ability to REDEVELOP oil fields demonstrated by a long history of exploitation success. The E&P experience to recognize potential, the professional ability and financial strength to seal the deal, and the expertise and innovation needed for intelligent planning and execution allows Renaissance to RECOVER significant value from assets thought to be largely depleted.
In an era in which E&P activity is continuing to move farther from the coast into deeper and deeper water, we’re staking our claim on what we know and what we’re good at. While the majors and independents constantly seek the next blockbuster discovery, Renaissance Offshore is happy to assume control of forgotten assets with bypassed reserves on the continental shelf.
This is because we know that in Gulf Coast oil production… There is more where that came from.”
In this case, hopefully not.
Hess To Focus On Deepwater Gulf Of Mexico Drilling
In January 2017, Hess announced an exploration and production capital budget of $2.25 billion for the year.
$375 million of that will be allocated to production activities in Deepwater Gulf of Mexico, including operations in the Penn State field.
The offshore oil company will devote $425 million to development activities in the Stampede Field, including drilling, completion, and the installation of a tension leg platform.
Gulf of Mexico Drilling Faced “Biggest Downturn In The World,” But Things Are Looking Up
With oil prices finally stabilizing in the high 50s – low 60s, offshore oil companies may finally start looking for oil offshore again.
Richard Sanchez, a marine financial analyst based in Houston, Texas, recemtly commented that while the Gulf of Mexico suffered from the biggest downturn in the world over the last two years, “I see a light at the end of the tunnel.”
This would be welcome news to oil companies, drillers, and oilfield services companies alike. Right now, only 85 of the 297 Jones Act platform supply vessels (PSVs) are on term contracts. 212 are stacked or working the spot market. (Learn about the Jones Act here.)
Offshore Injury Lawyers Are Here To Help
History tells us that as rigs and offshore vessels go back to work, equipment that has been sitting idle too long will fail. Unqualified people will be promoted. Companies will take shortcuts to maximize efficiencies. Accidents will occur.
Unlike most other industries, maritime workers do not get workers’ compensation. But they do have special rights to compensation that may, depending on the circumstances, be superior to workers’ comp.
If you or a loved one is injured working offshore or on the high seas, you should contact an experienced maritime injury attorney to learn about those rights.
Our Texas Jones Act lawyers at Morrow & Sheppard LLP assist injured seamen and offshore workers nationwide. We provide free consultations, and we only get paid when our clients win.
Call us now at 1-800-489-2216 for a free and confidential consultation to learn more.