Contracts Blog

Today, the U.S. Senate Committee on Environment & Public Works heard testimony regarding the economic impact of the Deepwater Horizon oil spill. Of course, the other way to find an answer to this question is to run a full-text EDGAR search.

From TETRA Technologies, Inc.:

Our operations in the Gulf of Mexico could be adversely impacted by the recent drilling rig accident and resulting oil spill.

On April 22, 2010, a deepwater Gulf of Mexico drilling rig, the Deepwater Horizon, sank after an apparent blowout and fire. Although attempts are being made to seal the well, there is an uncontrolled flow of hydrocarbons from the well and the resulting spill area continues to grow. Our operations, as well as those of certain of our customers, may be threatened by the oil spill, and could result in operations and projects being curtailed or suspended. This could result in revenues being reduced and significant costs being incurred.

We have significant operations that are either ongoing or scheduled to commence in the Gulf of Mexico. At this time, we cannot predict the full impact of the incident and resulting spill on the schedule of our operations or those of our customers. In addition, we cannot predict how government or regulatory agencies will respond to the incident or whether changes in laws and regulations concerning operations in the Gulf of Mexico will be enacted. Significant changes in regulations regarding future exploration, development, or production activities in the Gulf of Mexico or other governmental or regulatory actions could reduce our revenues and increase our operating costs, resulting in reduced cash flows and profitability.

From McDermott International, Inc.:

Our offshore oil and gas construction operations could be adversely impacted by the recent drilling rig accident and resulting oil spill.

On April 22, 2010, the drilling rig Deepwater Horizon, which was engaged in deepwater drilling operations in the Gulf of Mexico, sank after an explosion and fire. The incident resulted in a significant and uncontrolled oil spill off the coast of Louisiana. Our Offshore Oil and Gas Construction segment is currently pursuing opportunities in the Gulf of Mexico. At this time, we cannot predict what, if any, impact the Deepwater Horizon incident may have on the regulation of offshore oil and gas exploration and development activity, the cost or availability of insurance coverage to cover the risks of such operations, or what actions may be taken by our customers or other industry participants in response to the incident. Changes in laws or regulations regarding offshore oil and gas exploration and development activities, the cost or availability of insurance and decisions by customers or other industry participants could reduce demand for our services, which would have a negative impact on our Offshore Oil and Gas Construction segment.

From Marathon Oil Corp.:

On April 22, 2010, the Deepwater Horizon, a rig that was engaged in drilling operations in the deepwater Gulf of Mexico, sank after an explosion and fire. The incident resulted in a significant and uncontrolled oil spill in the Gulf of Mexico. We have no ownership interest in those operations or any adjacent interests. However, we do have significant exploration and production activities in the Gulf of Mexico, including deepwater areas. Also, we have an interest in an offshore oil port in the Gulf of Mexico and significant portions of the crude oil supplied to our refineries must be transported through the Gulf. At this time, the Deepwater Horizon incident is having no significant effect on our operations in the Gulf of Mexico. However, we cannot predict what, if any, ultimate impact the Deepwater Horizon incident will have on us

From PartnerRe Ltd.:

On April 20, 2010, the Deepwater Horizon Drilling Platform in the Gulf of Mexico exploded and sank. The Company has exposure to this event primarily through its Global (Non-U.S.) Specialty and Paris Re sub-segments. The Company expects its claims relating to Deepwater Horizon will be between $60-$70 million, pre-tax, net of reinstatement premiums and retrocessions. The Company’s loss estimates related to Deepwater Horizon are preliminary, as there is limited actual loss data available. The Company will update these estimates as additional information is received.

Recently, I’ve added Transocean Ltd. contracts, Transocean Inc. contracts, as well as Cameron International Corp. contracts.