temporary abandonment

Houston co. starts work on 9 orphan wells in Gulf of Mexico

The temporary abandonment of the nine wells, which are located in the Matagorda Island lease area in the Gulf of Mexico, is the first stage of full decommissioning of oil and gas infrastructure. Photo via Getty Images

A Houston-based company that develops, produces, and decommissions mature assets in a cost-effective and environmentally sustainable manner and begun work on the temporary abandonment of nine orphan wells.

Promethean Energy has announced the beginning of the project on the wells on behalf of the Department of Interior's Bureau of Safety and Environmental Enforcement, or BSEE. The temporary abandonment of the nine wells, which are located in the Matagorda Island lease area in the Gulf of Mexico, is the first stage of full decommissioning of oil and gas infrastructure.

"We are very proud to have been able to start work and contribute to this project of strategic national importance commissioned by BSEE," Promethean's SVP Decommissioning Steve Louis says in a news release.

The company was awarded a five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract "to address the most immediate and urgent needs representing safety and environmental hazards" of the wells which no prior owner survives, per the release.

Promethean has conducted its own inspection of the platforms using drone-based laser scan technology in order to digitalize the structures and evaluate the equipment to plan safe boarding and procedures.

The next steps of decommissioning the wells will be to repair the platforms and wellhead equipment, followed by well diagnostics testing and the well decommissioning itself.

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A View From HETI

The USDA has announced a $1.4 billion investment to transition San Miguel Electric Cooperative in rural South Texas to a 600-megawatt solar and battery energy system, aiming to reduce climate pollution and create jobs by 2027.

The United States Department of Agriculture recently announced that San Miguel Electric Cooperative Inc., located in Christine, Texas, in Atascosa County, just outside of San Antonio, will transition its operations to produce 600 megawatts of energy using solar panels and a battery energy storage system (BESS).

The project is expected to reduce climate pollution by 1.8 tons annually, equivalent to removing 446,000 cars from the road each year, says USDA.

The project with the San Miguel Electric Cooperative plans to use more than $1.4 billion investment to procure 600 megawatts of renewable energy through solar voltaic panels and a battery energy storage system to power 47 counties across rural South Texas. The clean project also hopes to support as many as 600 jobs.

This is part of the over $4.37 billion in clean energy investments through the United States Department of Agriculture’s (USDA) Empowering Rural America (New ERA) Program, which has rural electric cooperatives supporting the economy via job creation, lowering electricity costs for businesses and families and reducing climate pollution. The New ERA was made possible by President Joe Biden’s Inflation Reduction Act, which was the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936.

San Miguel plans to convert its operations to a 400-megawatt solar generation facility and 200-megawatt battery storage facility, and the transition should be complete by 2027. Currently, San Miguel produces 391 megawatts of electricity through a contract with South Texas Electric Cooperative (STEC).

“USDA is committed to enhancing the quality of life and improving air and water in our rural communities,” Secretary Tom Vilsack says in a news release. “The Inflation Reduction Act’s historic investments enable USDA to partner with rural electric cooperatives to strengthen America’s energy security and lower electricity bills for hardworking families, farmers and small business owners.”

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