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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

China Slams South China Sea Case as Court Set to Rule

An international court said on Wednesday it would deliver a hotly anticipated ruling in the Philippines' case against China over the South China Sea on July 12,

CMA CGM Crosses 91.05% Ownership Threshold of NOL

CMA CGM S.A has crossed the compulsory acquisition ownership threshold in Neptune Orient Lines Limited (NOL).    Following its all-cash voluntary conditional

ECDIS Related Detentions on the Rise

ClassNK has been informed by Australian Maritime Safety Authority (AMSA) that during PSC inspections it has been increasingly reported that vessels have been detained

Offshore

Lloyd's Register Extends Drilling Rig Integrity Support

Exploration begins by BHP Billiton using the Deepwater Invictus rig and supported by Lloyd’s Register’s rig integrity team. Lloyd’s Register (LR) announced it

Another Fugro Vessels Joins Largest SEEP-Hunting Survey

Fugro has deployed multi-purpose offshore survey vessel Fugro Gauss to join the Fugro Brasilis offshore Mexico, to help complete the world’s largest seep-hunting

JIP Validates DNV GL's Helica Software

A joint industry project run by DNV GL has replicated stresses measured in an umbilical subjected to tension and bending in full-scale tests, further validating

Energy

Lloyd's Register Extends Drilling Rig Integrity Support

Exploration begins by BHP Billiton using the Deepwater Invictus rig and supported by Lloyd’s Register’s rig integrity team. Lloyd’s Register (LR) announced it

Another Fugro Vessels Joins Largest SEEP-Hunting Survey

Fugro has deployed multi-purpose offshore survey vessel Fugro Gauss to join the Fugro Brasilis offshore Mexico, to help complete the world’s largest seep-hunting

JIP Validates DNV GL's Helica Software

A joint industry project run by DNV GL has replicated stresses measured in an umbilical subjected to tension and bending in full-scale tests, further validating

 
 
Maritime Security Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | 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: 0.0897 sec (11 req/sec)