Drilling Contractors Might Quit US Gulf Work

Press Release
Sunday, August 19, 2012

IADC Criticizes BSEE Policy for Citing Drilling Contractors

The International Association of Drilling Contractors (IADC) say they are gravely concerned with the Interim Policy Document issued this week by the U.S. Bureau of Safety and Environmental Enforcement (BSEE). By affirming that BSEE inspectors can issue Incidents of Noncompliance (INCs) to drilling contractors as well as oil companies, this unprecedented policy demonstrates a significant deviation from the global paradigm of holding operators ultimately responsible for accidents at the well site.

“Drilling activity is strong around the world, with significant rig demand in areas like Brazil, West Africa and Asia Pacific. Drilling contractors could well decide to leave the Gulf for places where they won’t have to bear the same risks."

“BSEE’s guidance is inconsistent with the industry model and creates a whole new area of ambiguity,” said Brian Petty, IADC executive vice president – government affairs. “Global government regimes have always held operators responsible. This new guidance opens the door to unknown levels of liability for contractors and additional uncertainty for contractors. At a minimum it could increase contractors’ insurance premiums, but it also could potentially eliminate coverage for many companies in the U.S. altogether.”

These additional costs and risk exposure, combined with the possibility for civil penalties and fines, could drive drilling contractors out of the U.S. Gulf of Mexico, where experienced and high-quality drilling contractors are desperately needed. “Drilling activity is strong around the world, with significant rig demand in areas like Brazil, West Africa and Asia Pacific. Drilling contractors could well decide to leave the Gulf for places where they won’t have to bear the same risks,” Petty said.

Under the standard IADC drilling contracts, drilling contractors are already liable to oil companies for any gross and willful negligence.

 


 

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Growing American Shipping Bill Introduced by Garamendi

Congressman John Garamendi (D-CA-03), Ranking Member of the House Transportation and Infrastructure’s Coast Guard and Maritime Transportation Subcommittee, informs ot the introduction of  H.

Orica Fined Heavily for Australian Pollution Incidents

Orica Australia Pty Ltd has been convicted and penalised $768,250 in relation to charges brought by the NSW Environment Protection Authority (EPA) for pollution

Canaveral Shipwreck Search Permit Granted to Seafarer's Quest

Research and recovery of historic shipwrecks experts Seafarer Exploration Corporation says that Seafarer's Quest, LLC has successfully been granted a three year

Offshore

Hornbeck Offshore Ride High on Q2 2014 Results

Hornbeck Offshore Services, Inc. has announced its financial results for the second quarter ended June 30, 2014.  Following are highlights for this period and excerpts

Crowley Maritime Open Singapore Office

Crowley Maritime Corp. says it has opened a full-service project management and logistics solutions office in Singapore under the leadership of industry veteran William Hill.

BOEM Extends O&G Lease Comment Period

The Bureau of Ocean Energy Management (BOEM) is extending the public comment period for the Request for Information (RFI) and Comments on the Preparation of the

Energy

Exxon Mobil Corporation Declares 3Q Dividend

The Board of Directors of Exxon Mobil Corporation yesterday declared a cash dividend of 69 cents per share on the Common Stock, payable on September 10, 2014 to

FortisBC Set to Expand its Tilbury LNG Facility

FortisBC Energy Inc. today selected Bechtel Canada Co. (Bechtel) as the contractor for its Tilbury LNG Facility Expansion Project in Delta, B.C. (Project). The

US Crude Oil Exports Hit 15-year High

U.S. crude oil exports reached 288,000 barrels per day (bpd) in May, the highest levels since April 1999, data from the U.S. Energy Information Administration showed on Wednesday.

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Port Authority Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0874 sec (11 req/sec)