W&T Offshore, Inc., says that it has secured a legal victory that will likely have some resounding effects on how collateral is determined for insurance coverage in various oil and gas projects.
US Magistrate Judge Dena Palermo, in the US District & Bankruptcy Court of Southern District of Texas, has denied motions for preliminary injunction by two surety companies which were seeking full payment of over $100 million dollars in collateral.
This ruling comes on the heels of a settlement between W&T Offshore and two other surety providers. That settlement called for the dismissal of a previously filed lawsuit in which those providers were demanding $250 million in collateral beyond what W&T was already contracted to cover.
W&T leadership says that it is hopeful these legal victories will help expose the existing practices of providers seeking to obtain additional collateral for covering various oil and gas projects beyond the scope of the initial agreements.
This most recent case is W&T Offshore Inc. et al. v. Endurance Assurance Corp. et al., case number 4:24-cv-03047, in the US District Court for the Southern District of Texas.
