Superior Energy Services and Shell Sign Bullwinkle Decommissioning Deal

abarrelfullabarrelfull wrote on 30 Apr 2014 07:46

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Feb 01, 2010

Today, Superior Energy Services, Inc. (NYSE: SPN) ("Superior") announces it now has ownership of Shell's Gulf of Mexico Bullwinkle platform, and related assets. Superior will plug and abandon the 29 wells associated with Bullwinkle, which is the deepest fixed-leg production platform on the Outer Continental Shelf. Installed in 1988, Bullwinkle produces 4,000 barrels of oil equivalent per day and serves as a processing hub for third parties.

Superior has also sold a 49% interest in the assets to Dynamic Offshore Resources, LLC, which will operate the field. The Bullwinkle platform will be decommissioned at the end of its economic life, and Shell has agreed to pay Superior an undisclosed amount once decommissioning is complete.

Terry Hall, Chairman and CEO of Superior Energy Services, Inc. stated, "We appreciate the confidence that Shell has shown in our body of work and our ability to plan, manage and execute well intervention and decommissioning projects. We look forward to utilizing our well intervention assets - including subsea assets (vessels and remotely operated vehicles) from our recently announced acquisition of Hallin Marine - for all aspects of work that will be performed during the remaining life of the property.

"Our plan for this property includes efficiently producing the remaining reserves, maintaining the platform's production-handling capabilities for the various subsea fields that it serves, and plugging the substantial majority of the wells within the next few years. In addition, subsea tiebacks could increase given Bullwinkle's strategic location, its large hydrocarbon processing capacity, continued high exploration interest in the area and the favorable economics associated with processing production through an existing structure."

John Hollowell, Executive Vice President of Deep Water for Shell, said, "Bullwinkle was a record-breaking project that served Shell and the industry well and enabled us to step out into the frontier of the deeper waters of the Gulf of Mexico. I can still remember how impressive it was to watch Bullwinkle's steel jacket sail offshore from the Texas coast. We now leave Bullwinkle in the capable hands of Superior as we focus our energy and resources on our exciting and growing portfolio of assets, projects, and prospects in the deep and ultra-deep waters of the Gulf."

Currently, Bullwinkle processes approximately 20,000 barrels of oil equivalent per day from four subsea fields; another significant field is expected to commence producing oil and gas through the hub by mid this year. Bullwinkle sits on Green Canyon Block 65 in 1,353 feet of water and has a cumulative production of more than 120 million barrels of oil and 185 billion cubic feet of natural gas. Given its location at the northwestern end of one of the most prolific hydrocarbon fairways in the Gulf of Mexico basin, Bullwinkle has been a successful processing hub for subsea field tie-backs.

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