UK firm picks up nine-well decom gig in Gulf of Mexico

UK-based wells consultancy Elemental Energies has won a master services contract with Promethean Energy, a Texas-headquartered late life oil and gas operator, enabling it to support the decommissioning of nine orphaned wells in the U.S. Gulf of Mexico.

Once the first stage of the deal started in February, the UK firm’s Huston office embarked on providing well management services for the plugging and abandonment of wells in the Matagorda Island area, off the coast of Texas. While no financial details have been disclosed, the contract is described by Elemental Energies as a “major” one.

Julie Copland, Elemental Energies’ Head of Decommissioning and Low Carbon, noted: “We’re thrilled with this award as it marks a significant expansion of our efforts in the Gulf. Our rich history in decommissioning, uniquely equips us to address the Gulf’s orphaned wells, applying our expertise to mitigate environmental risks, navigate complex regulations, and reduce the associated OPEX of decommissioning work.”

The British player’s work forms part of a five-year contract, which Promethean secured with the United States Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) to decommission orphaned offshore wells. Thanks to the Bipartisan Infrastructure Law, $64 million was earmarked for orphaned oil and gas wells on public lands.

Steve Louis, Promethean Energy’s senior vice president (SVP) for Decommissioning, said: “We at Promethean are delighted to have Elemental Energies as a strategic partner, as we work with the federal government and others to deliver these projects of strategic importance to the nation’s environmental stewardship and energy security. 

“Elemental’s well engineering expertise is an important component of our comprehensive wells management capability as an operator of mature assets and their decommissioning.”

While environmental activists have been waging legal battles to put an end to drilling activities in the Gulf of Mexico, many oil and gas companies are embarking on hydrocarbon exploration quests for the sake of energy security. As a result, players such as Diamond Offshore Drilling and Seadrill recently secured drilling contract extensions, while LLOG Exploration started drilling an exploration well.