The package acquired by SPN Resources includes 18 fields on 25 blocks in the shallow water Gulf of Mexico, containing 34 structures and 98 wells, including 18 wells that are currently producing.
Under the terms of the transaction, no cash will change hands at closing. Superior will assume the decommissioning liability and will invoice Unocal at an agreed upon turnkey price as each decommissioning (abandonment and structure removal) is completed. Superior believes this transaction will generate significant revenues over a four-year period for abandonment, decommissioning and removal work, as well as incremental service work on producing properties that SPN Resources will operate.
"This transaction benefits both Superior and Unocal," said Terry Hall, President and CEO of Superior Energy Services, Inc. "Given the mature state of several of the properties, we anticipate performing abandonment work as soon as possible. We believe this initial opportunity meets the criteria we were seeking by providing us stable cash flow and flexibility in scheduling production-related and abandonment projects to achieve efficiencies. The key driver is our ability to efficiently execute the abandonment and structural removal work."
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