Elemental Energies secures major contract for Gulf of Mexico wells decommissioning

Elemental Energies, a leading independent wells specialist, has clinched a significant master services contract aimed at decommissioning nine orphaned wells in the Gulf of Mexico.

The contract, awarded by Promethean Energy, a late-life oil and gas operator, underscores a concerted effort toward safe, efficient, and timely decommissioning of mature assets in the region.

Its initial phase began in February, with Elemental Energies spearheading well management services from its Houston headquarters for the plugging and abandonment of wells situated in the Matagorda Island area, off the Texas coast.

Addressing orphaned oil and gas wells

This initiative is part of a broader five-year contract granted to Promethean by the Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) to address orphaned offshore wells.

Julie Copland, Head of Decommissioning and Low Carbon at Elemental Energies, expressed excitement over the award, highlighting its significance in expanding their footprint in the Gulf.

“Our rich history in decommissioning, uniquely equips us to address the Gulf's orphaned wells, applying our expertise to mitigate environmental risks, navigate complex regulations, and reduce the associated OPEX of decommissioning work,” he said.

The contract receives partial funding from the Bipartisan Infrastructure Law, with a dedicated $64 million allocation earmarked for addressing orphaned oil and gas wells on public lands.

Steve Louis, Senior Vice President of Decommissioning at Promethean Energy, lauded the collaboration with Elemental Energies, labeling them a strategic partner in their mission to execute projects of national significance.

He said in a press statement, “Elemental’s well engineering expertise is an important component of our comprehensive wells management capability as an operator of mature assets and their decommissioning.”

The partnership between Elemental Energies and Promethean Energy not only reflects the commitment to environmental stewardship and energy security but also signifies a pivotal step forward in addressing challenges posed by orphaned wells in the Gulf of Mexico.

With both companies’ expertise and dedication, the project aims to set new benchmarks in safe and sustainable decommissioning practices, ensuring a brighter future for the region's marine ecosystem and energy landscape.