Superior Energy Services Inc. subsidiary Wild Well Control Inc. has signed contracts with subsidiaries of BP plc, Chevron Corp. and Apache Corp. to decommission seven downed platforms, associated wellbores and other related well facilities located offshore Louisiana for a fixed sum of $750 million.

Work on the project has already begun and will ramp up gradually during the first quarter before “going full bore” during the second quarter. The work, which will take place in water depths of 85-135 feet, is expected to take approximately three years to complete, according to Superior Energy Services CEO Terence Hall. He did not identify the specific locations of the platforms, which were apparently damaged by hurricanes Katrina and Rita in 2005.

Since Hurricane Ivan in 2004, Houston-based Wild Well Control has plugged and abandoned more than 340 wells on 30 downed platforms in water depths of up to 340 feet, requiring the removal of more than 15,000 metric tons of steel structure and more than 400 pressurized and unpressurized entries into wells, Hall said.

“We’ve got a lot of experience in managing this type of work for customers over many, many years. This is the first time that we will take on a project of this size and scope for our own account,” Hall said.

“It was really our expertise in dealing with wellbores that led to us being awarded this work,” Hall said. “This is not a salvage project or construction-type work at all. This is very sophisticated work that involves dealing with damaged wellbores first and then ultimately removing the structures.”

Revenue and income will be recognized using the percentage-of-completion method, Hall said.

Superior Energy shares, which had closed at $35.84 Wednesday, rose as high as $42.13 (17.6%) following the announcement.

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