Oil Rig Accidents

Oil Rig Explotions

Oil Rig Injuries

ATP Oil and Gas Corporation

ATP Oil and Gas Corporation was founded in 1991 and has been involved in acquiring and developing offshore natural gas and oil reserves, primarily in the Gulf of Mexico as well as the North Sea and the Mediterranean Sea. It has headquarters in Houston, Texas with offices in the UK and Netherlands as well. While successful for many of their ventures, they have experienced some serious setbacks, and their future may be uncertain.

Vessels and Operations

ATP owns and operates a number of offshore platforms or hubs.

  • Clipper

The Clippers (#2 ST #1) is located in the Gulf of Mexico in Green Canyon Block 300. It was successfully completed and tested to 45.6 MMcf per day plus condensate of 4,656 Bbls per day.

  • Gomez Hub

The Gomex Hub controls operations for six producing wells located in Mississippi Canyon, Block 711, Gulf of Mexico. The hub expects continued volumes of 24.8 MMBoe at 66% oil. Exploration of adjacent blocks is also expected to bring similar results.

  • Telemark Hub

Telemark Hub is located in Mississippi Canyon block 941, A-1 #3. ATP has seen strong performance from #3, producing a gross volume of 2.8 MMBoe at 85% oil and 15% gas. They expect similar results from wells #3 and #4. The Titan is a floating production facility that services the Telemark hub and has a processing capacity of 25,000 Bbls of oil, 30 MMcf of gas and 15,000 Bbls of water daily.

  • Octabuoy

Octabuoy is a floating production facility that is being produced by ATP. Work is being done at a UK shipyard. Some production is being done in China. Once each module is complete, it is shipped to Norway for final commissioning. In addition, they were working on Skipper, a project located in central UK, North Sea.

Additionally, the company has acquired interest in several offshore deepwater licenses off of Israel in the Mediterranean Sea.

Deepwater Horizon Oil Spill

The Deepwater Horizon was an oil rig located in the Gulf of Mexico in an area called Macondo. In 2010 there was a large explosion that killed 11 workers and destroyed and sank the rig. It created the largest marine oil in petroleum industry history, an estimated 210 million gallons. The government launched an investigation to determine the cause of the disaster. They found that the cement may have been defective and also faulted the owners and operators, a group of about 15 companies including ATP.

The spill took years to clean up and once BP declared cleanup complete it was determined that there was still more work to do. Many miles of shoreline were impacted by the oil spill as was wildlife near the area. The long-term impact is still being reviewed but is thought to be considerable. Many fish and other living creatures were lost due to the oil, and it could take years for them to return. The area may never fully return to the way it was before the spill.

Bankruptcy and Legal Troubles

In 2012 the company filed for Chapter 11 bankruptcy protection. They cited the costs associated with the Deepwater Horizon oil spill as well as other factors. The company stated that they were unable to resume operations after the spill, severely hampering their ability to complete projects nearby. ATP has moved into Chapter 7 bankruptcy and is no longer operating. $3.85 million of the penalty was part of a bankruptcy court settlement.

In 2014, two years after filing for Chapter 11 protection, ATP encountered further legal troubles. The company reportedly violated the Outer Continental Shelf Lands Act. In 2015 it was reported that the U.S. Department of Justice, Bureau of Safety and Environmental Enforcement and Environmental Protection Agency together settled two agreements with ATP. The company agreed to pay $41.85 as settlement for federal charges.

ATP executives were sued by Macquarie Investments, LLC, a company based in Sydney, Australia. The lawsuit states that executives at ATP misrepresented royalty interests in a sale of $110 million. According to the lawsuit, ATP did not properly disclose the transaction as part of their bankruptcy. The company is seeking $32 million in damages and is requesting a jury trial. The case was filed in U.S. District Court in the Southern District of Texas.

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