Offshore staff
(US, GoM) – LL&E Royalty Trust says it has received preliminary assessments regarding damage from Hurricanes Katrina and Rita to production facilities for properties in which the Trust has an interest.
The Trust has been informed that the platform in South Marsh Island block 76 was severely damaged during Hurricane Rita, and that the operator, Chevron, has not yet provided repair cost or time estimates to the working interest owner. The working interest owner cautioned the Trust that it is possible that the operator may determine to plug and abandon the property rather than repair the platform and facilities.
The Trust reports that the platform in Vermillion block 331, which is operated by Energy Resource Technology, was damaged by Hurricane Rita and is shut-in. The operator has not yet provided an estimate of repair costs to the working interest owner, but has estimated that the repairs will take approximately three to five weeks to complete.
The Trust says that the platform in Eugene Island block 261, which is operated by Houston Exploration, was damaged by Hurricane Rita. Repair costs are not yet available from the operator. The property is currently shut-in due to downstream problems. The operator expects to be back on line in four to six weeks.
The Trust adds that the platform in East Cameron block 195 was significantly damaged during Hurricane Rita. The Maritech-operated facility was shut in prior to Hurricane Rita and approved for abandonment.
The Trust has also been informed that Hurricane Katrina damaged the Marathon-operated platforms located in South Pass block 89. The operator has not yet provided a time estimate for repair to the working interest owner.
10/18/05
