BSEE Issues Final Hurricane Ian Activity Report

BSEE Issues Final Hurricane Ian Activity Report
BSEE estimates that approximately 9.12 percent of the current oil production and 5.95 percent of the natural gas production in the Gulf of Mexico has been shut-in.

The Bureau of Safety and Environmental Enforcement (BSEE) has revealed that it has issued its final report on Hurricane Ian activity.

Based on data from offshore operator reports submitted as of 11:30am CDT on Wednesday, personnel have been evacuated from a total of 11 production platforms in the Gulf of Mexico, which represents 2.11 percent of the 521 manned platforms in the region, BSEE outlined.

The organization also highlighted that personnel have been evacuated from five non-dynamically positioned rigs, which it said is equivalent to 35.71 percent of the 14 rigs of this type currently operating in the Gulf, and revealed that a total of three dynamically positioned rigs have moved off location out of the storm’s path as a precaution. This number represents 15.79 percent of the 19 DP rigs currently operating in the Gulf of Mexico, BSEE noted.

From operator reports, BSEE estimates that approximately 9.12 percent of the current oil production and 5.95 percent of the natural gas production in the Gulf of Mexico has been shut-in.

As of 2am EDT on September 29, Hurricane Ian is over Florida with maximum sustained winds of 75 miles per hour and a nine mile per hour northeast movement.

“Florida Gulf Coast infrastructure credits are well-prepared to handle the immediate costs and operational disruptions that may result from Hurricane Ian,” Kurt Krummenacker, the associate managing director for Moody’s Investors Service, said in a statement sent to Rigzone late Wednesday.

“Resilient physical construction methods, experience with previous storms, and financial liquidity give them a strong position to withstand the immediate effects of the storm. Their essentiality and cost recovery revenue models have proven effective in mitigating lost revenue from operational disruptions that follow the storm,” he added in the statement.

Yulia Rakityanskaya, an analyst for Moody’s Investors Service, said, “potential infrastructure damage from Hurricane Ian highlights the highly negative exposure of Florida’s investor-owned utilities to physical climate risks under Moody’s ESG framework”.

“While the full impact of the hurricane has yet to be determined, it will be credit negative for the state’s utilities in the near term because of the potential for substantial restoration costs. However, we expect the supportive regulatory storm cost recovery mechanisms available to the Florida utilities, as well as their strong liquidity profiles, to mitigate the negative impact on utility credit quality longer term,” Rakityanskaya added in the statement, which was also sent to Rigzone.

To contact the author, email andreas.exarheas@rigzone.com



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