Helix Energy Solutions Awarded Major Decommissioning Contract in US Gulf of Mexico

Helix Energy Solutions (NYSE: HLX) has been awarded a significant 39-well decommissioning contract in the U.S. Gulf of Mexico.

The contract was awarded to Helix’s Louisiana-based subsidiary Helix Alliance and is expected to commence in mid-2023. The scope of work includes the plug and abandonment of 39 wells, 15 pipelines and seven structures.

Helix Alliance will use a variety of assets for the campaign, including the heavy lift derrick barge EPIC Hedron for structure removals, liftboats for plug and abandonment activities, the Triton Explorer dive support vessel for pipeline abandonments, and multiple Helix Alliance OSVs.

The EPIC Hedron is a highly capable heavy lift derrick barge suited for heavy lift, decommissioning, construction and installation projects. It is equipped with a 1,763-ton capacity, a fully revolving crane and accommodations for 300 personnel.

The contract award comes as a new study estimates there are some 14,000 unplugged, non-producing offshore and coastal wells in the U.S. Gulf of Mexico alone that would cost more than $30 billion to cap.

“This award demonstrates Helix’s position as the preeminent company for full-field decommissioning in the Gulf of Mexico shelf, along with our other services supporting the full life cycle of offshore fields, following the expansion of our industry-leading decommissioning services with our acquisition of Alliance last year,” said Owen Kratz, Helix’s President and Chief Executive Officer.

Helix Energy Solutions acquired the equity interests of the Alliance group of companies in July 2022, expanding its decommissioning presence in the Gulf of Mexico and advancing Helix’s environmental, social and governance initiatives by responsibly supporting end-of-life requirements of oil and gas projects.

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