Published on 6 Mar 2024 on Zacks via Yahoo Finance

Helix (HLX) Wins Gulf of Mexico Decommissioning Contract

Helix Energy Solutions Group, Inc. HLX, an offshore energy services company, entered into a five-year joint framework agreement with Talos Energy, Inc. TALO for the latter’s decommissioning requirements in the U.S. Gulf of Mexico. Per the terms of the agreement, Talos has granted Helix the first right of refusal related to specific annual work scopes for the former’s decommissioning projects.

Helix will provide decommissioning services, for offshore wells and infrastructure, primarily on the U.S. Gulf of Mexico (GoM) Shelf. The agreement also mentions a base pricing structure and processes for determining and scheduling specific projects on the basis of Talos’ requirements. The work is expected to begin in the second quarter of 2024.

The project has been awarded to Helix Alliance, Helix’s Louisiana-based subsidiary. The scope of work involves normal course abandonment of Talos’ offshore wells, pipelines and platforms, primarily on the GoM shelf. Throughout the campaign, Helix Alliance plans to use derrick barges for structure removals, lift boats for plug and abandonment activities, and dive support vessels for pipeline abandonments. The subsidiary also intends to use multiple offshore supply vessels and several other Helix Alliance assets during the campaign.