Mariner Energy Shares Plunge On Reports Of Explosion At A Company-Owned Platform

Tyler Durden's picture

Update: the explosion is on a Mariner operating platform in the Vermillion 380 field. This is not a rig.

From CNN:

An oil rig has exploded 80 miles off the coast of Louisiana, with 12 people overboard and one missing, the Coast Guard said Thursday morning.

Rescue attempts are underway for at least 12 people, Coast Guard spokesman John Edwards told CNN. 13 people were on board the rig total, Edwards said, noting 12 have been accounted for, but one person was missing.

The accident took place 80 miles off the coast of Louisiana on the Vermilion Oil rig 380, which is owned by Houston-based Mariner Energy.

The Coast Guard has multiple helicopters, an airplane and several Coast Guard cutters en route. It's unknown if there are any injuries.

The description of the Vermillion 380 field from the company's 10-K

At year-end 2009 estimated proved reserves attributed to our
Vermillion 380 field were 33.2 Bcfe, consisting of
approximately 47% oil and NGLs and 53% natural gas. During 2008
and 2009, we drilled five wells and added additional production
capacity on the “A” platform. Hurricane Ike damaged
the structure with the rig on the platform, causing us to
suspend drilling while underwater structural repairs were made.
We brought the platform back on production at reduced rates
until the facilities upgrade was finished. The platform is
currently producing approximately 28 MMcfe per day. Our
working interest in this block is 100%. Production at Vermillion
380 was approximately 1.1 Bcfe in 2009.


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VK's picture

Ka-boom! Now if only hurricane Earl did it's job and flooded all the HFT servers.

TraderMark's picture

Completely off topic but always in topic as it speaks to nonsense in our markets.  "I want my" video (2 minutes) 

aka why buying high beta stocks is always good since they always go up, in "I want my MTV" style spoof.  I can't do it justice.. laugh out loud stuff.

Tom Servo's picture

Someone needs to call the SWAT Teams....


Turd Ferguson's picture

Got down to 19.62. Back up to 22.01. Overdone?

SheepDog-One's picture

'Priced in' rather Turd Ferguson!

Turd Ferguson's picture

Of course. I forgot.

I also heard that a renegade North Korean sub has been seen in the vicinity ;)

DollarMenu's picture

Please, no more dead workers.

RockyRacoon's picture

'Tis on CNBC reported -- must be the truth!

scatterbrains's picture

hhmm  how will we ever know how much of the slick belongs to BP now?

Augustus's picture


Who told you there was any oil going into the water?

MsCreant's picture

9:00 accident, you are here already. Interesting.

Ripped Chunk's picture

Augie, you are a fucking troll. Go back to your oil analyst or sheep fucking job or whatever it is you do and go post to Newsvine or someplace where your intelectual equals hang.

whatsinaname's picture

no more of this please.

things are bad enough as it for the gulf.

Cognitive Dissonance's picture

no more of this please. things are bad enough as it for the gulf.

Are you asking for no more exploding rigs in the GOM or no more reporting of news of exploding rigs in the GOM?

Just curious because you didn't say.

whatsinaname's picture

no more dead workers and bad news for the gulf.

Cognitive Dissonance's picture

I agree.

But if it does happen, I wish to know about it. Until Big Brother decides I would be too upset by it and they only report cat-rescued-from-tree stories. That will be a great day in America, at least for all those news starved cat lovers.

old_turk's picture


I worked my way through college working in the GoM (and Alaska amoungst other places). 

It's a dangerous place and a dangerous business.  Always has been.

I saw more than my share of rig fires back in the '70's but no Walter Cronkite (although I did see a NBC correspondent once - in bar in Fairbanks, but that's another story for another time). 

Spalding_Smailes's picture

An oil rig accident has occurred in the Gulf of Mexico and rescue attempts are underway for at least 12 people, Coast Guard spokesman John Edwards told CNN.

The accident took place 80 miles off the coast of Louisiana on Vermilion Oil rig 380, which is owned by Mariner Energy.

The Coast Guard has multiple helicopters, an airplane and several Coast Guard cutters en route. It's unknown if there are any injuries.

The rig inquestion is Vermilion Oil rig 380 owned by Mariner Energy.

firstdivision's picture

But the Oil Industry said that the New Horizion incident was so rare, it wouldn't happen for hundreds of years.

Augustus's picture

This is not a well being drilled.

the explosion happened on a production platform where the production is gathered for processing.

Where did you get the information that this was a drilling rig?  Did Geo Wash send you any information?  If so, disregard it.

firstdivision's picture

and where were you when the news broke to tell everyone to shut up?  Working a little slow today?

Ripped Chunk's picture

Augie is a fucking TROLL / SHILL

-Michelle-'s picture

One more of these and I'm calling it sabotage.

hedgeless_horseman's picture

One more time?  You must be Indian.  This means war!  Those damn North Koreans with their fancy al Qaida financed Venezualean submarine base.  We'll show them.  If a naval battle in the GOM is what it takes, then that is ok by me.

Disclosure Statement: Long Nalco Holding Company

Max Hunter's picture

I think it was an Iranian Nuke hidden in one of the Flotillas headed for Gaza..  :)

docj's picture

Fuck that - I'm ready to call sabotage now.

I mean, when was the last off-shore rig explosion prior to the New Horizon explosion - and now we have two happeneing in the same year and practically within the same grid square?

Coincidence, my ass.

clotario's picture

It's dem dang lib-rals, it is!

docj's picture

Well, damned if I know.

But we ought never let a good crisis go to waste. Right?

AssFire's picture

Agreed. George Washington must be behind these.

Augustus's picture

Your ass is showing.

It is not a drilling rig.

It is a production platform.

docj's picture

Distinction, fail to meet difference.

firstdivision's picture

So we ignore when the production rig dumps its holdings into the GOM?  Pull your scepter out of your butt and play king in your own home.

old_turk's picture

Production rigs are different set-ups ... your ignorance is showing.

And yes, I work in healthcare finance and I worked in the oil field to finance my college.  GoM and Alaska (amoung other locations).

There will be some 'spill' simply due to the way production equipment shuts down but as far as another 'BP Deepwater Horizon' ... not likely.

firstdivision's picture

So your logic dictates that a production rig has no oil on it whatsoever?  You are the one showing your ignorance.  And please explain now a report of a 1 mile sheen on the surface...couldn't be from this production rig according to you. 

<s>So you worked on an offshore rig while going to school?  </s>

Ripped Chunk's picture

Augie, your TROLL is showing

Jack's picture

If it was sabotage, it's hard to say who.

Probably not environmental extremists.  They don't really have the capability to hit targets a mile underwater.

Possibly insiders on the rigs, but it would be extremely coincidental to have it happen on two rigs from two companies like this.

International covert ops?  The US sabotaged that Russian oil facility during the cold war.  I think some of the work on the BP blowout preventer was contracted out to China.  No info yet on if something similar on this rig, but it seems far fetched.

Unless there's more evidence, I'd have to go with the most likely culprit- extremely lax safety standards and corner cutting.


Augustus's picture

Did Matt Simmons leave a note predicting this one?

Raging Debate's picture

I have to agree with your assessment Jack. Reminds me of the collapse of the Big Dig in Boston. Cheap rivets while the union bosses skimmed the cream and skipped on quality parts/personnel.

Since it is my first comment, I wish to say a job well done to Durden and team! I have been doing some truth-telling of my own but the focus of your team on investigative reporting is impressive. This stuff ain't easy and no, big capital is in no hurry to invest in normalizing blogosphere news.

DavidPierre's picture

Welcome aboard JD!  Lots of reading just keeping abreast of the news on ZH. 

"The times they are a changing."


Quinn just wallows in his sty/blog with his usual racist, sycophantic idiots: while the he ignores REALITY. 

I drop '9/11Truth' bombs into TBP when I feel like it.

JimQ reacts in his familiar, childish ways, belittling anyone who challenges his ignorance and stupidity. 

He thinks he can ban IPs...HAHAHAHA!...

What a MORON! 

docj's picture

You're probably right, Jack - my attempts to play hyperbolic contrarian upthread notwithstanding.  I suppose I should leave the contrarianism to the likes of Leo, eh?

Cheers, all -

tj3's picture

Coz as we all know incompetence is a thing of the past.

SO IF, a aggressive driver rams into me, I am supposed to have empathy for the driver?



tj3's picture

oh and in the past this shit has happened but the only one's that really gave a damn were the one's making sure it stayed out of the news. (also see dispersants)

For example, everyone now knows about these, right?


JesseJames's picture

ME holds a 100% interest in the rig.

SheepDog-One's picture

Hmmm lots of oil rig explosions in the Gulf...Im sure theres nothing to see here people, move along and just concentrate on beating the HFT algos with your Commodore 64 trading setup. Im quite confident youll beat them.

sheeple's picture

Irene Aldridge must be proud

firstdivision's picture

Sure, why not.  That would cost maybe $5k to $10k.

traderjoe's picture

Bob Doll (MS) used that "it can't get much worse" logic a bit ago to defend his perma-bullish stance. 

In 2008 we were clearly hours from a collapse of the banking system. Since then nothing has been fixed, just papered over with even more debt. Cracks are showing everywhere. The shills suggest there is zero probability for another decline, much less a crisis? Whistling past the graveyard with the hard earned savings of sheeple everywhere.