Tatham Offshore said yesterday that four of its subsidiaries,including Rigco North America LLC, FPS III, FPS V and FPS VI, whichown virtually all the company’s operating assets, filed for reliefunder Chapter 11 in the US Bankruptcy Court for the SouthernDistrict of Texas earlier this week.

Tatham, a Houston-based independent energy company, said themain reason for its subsidiaries’ financial difficulties has beentheir relationship with the large drilling company SchlumbergerTechnology Corp. In late July, Tatham filed a complaint againstSchlumberger in a Texas District Court, accusing the drillingcompany of gross negligence, breach of contract, fraud andnegligent misrepresentation in conjunction with Schlumberger’smarketing, staffing, management and operation of two of Tatham’ssemisubmersible drilling rigs, the Bill Shoemaker and the LaffitPincay.

“The [Tatham subsidiaries filing Chapter 11] have alleged inbankruptcy court proceedings that the manner in which Schlumbergerperformed its duties with respect to the Shoemaker and Pincayduring the course of the management and charter agreements resultedin [the subsidiaries’] financial difficulties and caused [them] todefault on their secured debt obligations,” Rigco said when itfiled its lawsuit with the court. The company is seeking $51million in actual damages.

Its run in with Schlumberger has not been Tatham’s only problemthis year. Last January, another of its subsidiaries, NorthAtlantic Pipeline Partners, folded its plans for a massive 575-milesubsea pipeline system to carry 2 Bcf/d of gas from the ScotianShelf offshore Nova Scotia to markets in Atlantic Canada and NewEngland. The project was proposed as an alternative to theMaritimes and Northeast Pipeline project. It was shelved by FERCwhen M&N received strong shipper commitments. North Atlanticnever submitted another proposal.

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