Contago Oil & Gas shuts in production due to pipeline rupture

Contango Oil & Gas Company said that on February 24, 2010, a dredge contracted by the Army Corps of Engineers to dredge the Atchafalaya River Channel ruptured our 20” pipeline that runs from our EI-11 gathering platform to the EI-63 platform where the pipeline joins a pipeline that transports our production to shore. The company immediately implemented our spill response plan. United States Coast Guard investigators, inspectors and pollution response personnel boarded the dredge this morning immediately after the incident. The private company that was performing the dredging had three individuals with minor injuries that have been treated. All applicable state and federal agencies and our insurance carriers have been notified.

The ruptured pipeline transports production from the four Mary Rose wells, our Dutch #4 well, and the Eloise North well and all six wells were immediately shut-in upon pipeline rupture. At the time of the incident, the pipeline was flowing approximately 125 million cubic feet equivalent per day (“Mmcfed”), or 45 Mmcfed net to Contango. The company has provided notice of Force Majeure to all applicable parties. Production from the Dutch #1, #2, #3 wells goes to the EI-24 platform and is unaffected and is currently flowing at approximately 27 Mmcfed, net to Contango.

Kenneth R. Peak, Contango’s Chairman and Chief Executive Officer, said “We are fortunate that we have received no reports of serious injury and any environmental impact at this time appears to be minimal. We have worked closely with the Army Corps of Engineers, the United States Coast Guard, and the Minerals Management Service and are gratified by the assistance we have received. A fly-over by our crew spotted a light sheen that they estimated at less than a barrel. Repair vessels and a diving crew are en-route to the location to assess the extent of the damage to our pipeline. We expect to have divers on scene today (February 25th) to give us a visual examination and our first estimate of the extent of the damage to our pipeline. We will issue a follow-up press release with more details when we have an estimate of the cost and time to repair the pipeline.”



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs