Hurricane Gustav moved through the Gulf of Mexico Sept. 1-5, causing rig and platform evacuations. Dozens of platforms were damaged, but no rigs were lost.
Hurricane Ike swept through the gulf Sept. 10-14, damaging and destroying drilling rigs and production platforms.
On Sept. 16, the US Minerals Management Service reported that three jack up rigs were destroyed, one jack up was extensively damaged, and two rigs were set adrift by Hurricane Ike. MMS also reported that the derrick on BP’s Mad Dog platform was lost.
MMS reported on Sept. 24 that 52 of the 3,800 offshore oil and gas production platforms in the Gulf of Mexico were destroyed by Hurricane Ike, up from 49 platforms reported on Sept. 18. Dozens of additional platforms suffered moderate to extensive damage from storm surge and wave action.
Lost jack ups
Contractors lost three jack up drilling rigs: Pride Wyoming, Rowan Anchorage, and ENSCO 74.
Pride International had 11 jack ups at work in the Gulf of Mexico and lost one to Hurricane Ike. The Pride Wyoming mat slot jack up is missing and expected to be a total loss. The Bethlehem JU-250-MS rig was built by Bethlehem Steel in Beaumont, Tex., and delivered in 1976. It was working for Apache Corp. in Ship Shoal Block 283, about 90 miles south of Houma, La., for $60,000/day, and was to begin a 3-month contract for Stone Energy at $77,500/day. The Pride Wyoming was insured for $45 million, with $20 million loss retention.
Rowan Cos. had nine rigs operating and nine rigs under construction in the Gulf of Mexico. The Rowan Anchorage, a LeTourneau 52-class slot jackup, is believed to have capsized off Louisiana, where it was drilling in Vermillion Block 201 for Newfield Exploration. It had been operating under a well-to-well contract at $60,000/day and was insured for $60 million, less a $17.5 million windstorm deductible.
Also, Rowan’s shore base in Sabine Pass, Tex., was subjected to a significant storm surge and will be out of commission for a while. One of the company’s new jack ups, Rowan Mississippi, was apparently struck by another vessel during the storm and will require some repairs.
On Sept. 15, Dallas-based ENSCO International Inc. reported that ENSCO 74, a MLT Super 116-C jack up, was missing and presumed sunk. It was working in about 230-ft water depth, 92 miles from shore in South Marsh Island Block 149 for Mariner Energy when Hurricane Ike passed over.
The cantilevered jack up with 375-ft legs was insured for $100 million and ENSCO has a $50 million retention per occurrence for windstorm damage losses.
Missing derricks
Diamond Offshore Drilling Inc. had 8 jack ups and 10 semisubmersible rigs in the gulf in September. One jack up, the Ocean Tower, was extensively damaged during Hurricane Ike. It was drilling in Vermillion Block 245 for Chevron but lost its derrick and drilling package. The LeTourneau Class 53-S jack up was built by Marathon LeTourneau in Vicksburg, Miss., and delivered in 1972.
BP Exploration’s Mad Dog spar platform was installed in 4,734 ft water in Green Canyon Block 782 and began production on Jan. 13, 2005. BP operates Mad Dog (60.5% working interest) on behalf of partners BHP Billiton (23.9%) and Unocal (15.6%).
The derrick of BP’s Mad Dog spar snapped and fell to the seafloor during Hurricane Ike (Fig. 1; photo from BP).
On Sept. 15, BP announced that the derrick had been toppled by Hurricane Ike and fell to the seafloor. Pride manages the Mad Dog drilling rig (Fig.1).
Failed moorings
Sugar Land, Tex.-based Noble Drilling had seven rigs working in the gulf; two semisubmersibles drifted off location after their mooring systems failed during Hurricane Ike. Both the Noble Paul Romano and the Noble Amos Runner had been working for Anadarko. On Sept. 15, Noble said that the mooring system on the Noble Lorris Bouzigard semisub was also damaged but the rig did not drift.
Transocean’s Transocean Marianas semisub drifted a few miles off location at Green Canyon Block 516 where it had been drilling for ENI. Transocean said the rig will need some repairs.
With nearly a month lost to delays and damage from the two hurricanes, spud dates will be delayed and drilling programs will probably need to be modified. An uptick in demand for platform decommissioning services is also likely.