ATP Oil and Gas

ATP Oil and Gas Corporation offshore drilling and production in the 1990s. Everything went off the rails for ATP with a series of events, a moratorium on drilling after the BP accident, and a series of accidents, fines, and lawsuits. This wasn’t the company’s only problem, though, as it faced accidents that hurt and killed workers, environmental accidents, and the lawsuits and fines that came with them.

About ATP

ATP Oil and Gas was founded in 1991 to target oil fields in the Gulf of Mexico, but also with sights set on the North Sea. Both regions are rich in oil reserves and have long been developed by numerous offshore companies, most much larger and with greater resources than ATP.

ATP set out to tap proven sites that were yet undeveloped. This meant they could skip the costly exploration phase, which requires time, expertise, and monetary investment.

Right out of the gate, ATP saw results with this approach, with a 97 percent success rate with drilling at proven undeveloped sites.

At one time, the company held leases and interests in 12 blocks in the North Sea and 50 blocks in the Gulf of Mexico. ATP filed for bankruptcy in 2012 and has not emerged and has instead had to sell assets to appease creditors.

ATP Accidents and Fatalities

Drilling for offshore oil is a dangerous business. In addition to working in rough waters and often terrible weather, workers use large, complicated equipment. The results can be deadly if anything goes wrong with the equipment or someone makes a mistake.

Additionally, working with flammable oil and gas can lead to fires and explosions. Before it went under, ATP Oil and Gas faced its fair share of accidents that harmed and even killed workers.

One such accident involving ATP and its workers occurred in 2006 on an offshore platform called the Grand Isle 9A in the Gulf of Mexico. ATP jointly owned the platform with Exxon Mobil. On July 8, at 4:30 a.m., a fire started on the platform.

The platform was shut down for repairs at the time, and the fire did not last long. Unfortunately, though, it did result in the death of one contract worker. Two others were safely evacuated and not injured.

ATP Environmental Accidents

Sometimes, the accidents that strike offshore oil companies like ATP are not necessarily harmful to workers but may cause substantial environmental damage.

This is always a risk with drilling for underwater oil, as any break, spill, or explosion can pollute the surrounding waters with millions or billions of gallons of oil before it can be contained.

ATP was found guilty in 2012 of allowing oil and a chemical dispersant to leak from its ATP Innovator platform in the Gulf of Mexico.

The company was found to have violated the Clean Water Act and the Outer Continental Shelf Lands Act. As a result of these violations, ATP was forced to pay over $41 million. Most of that, $38 million, was for violations of the Clean Water Act, and the rest for violations of the Outer Continental Shelf Lands Act.

The Deepwater Horizon Spill and ATP’s Downfall

When the company was found to be in trouble for violations and fined, it was already beginning Chapter 7 bankruptcy proceedings. Eventually, ATP would file Chapter 11 and struggle to return from that.

While environmental accidents could have led to bankruptcy, the company claims its problems ultimately came from British Petroleum. BP was responsible for the Deepwater Horizon incident and the subsequent halt in drilling in the Gulf of Mexico.

The incident occurred on April 20, 2010, with the Deepwater Horizon, a semi-submersible oil rig 50 miles off the coast of Louisiana. A massive blowout at the well led to a devastating explosion that killed eleven workers and sank the oil rig two days later.

The connection to the seafloor was severed, and the blowout preventer failed. Nearly five million barrels of oil spilled into the Gulf of Mexico before it could be stopped months later. It was the worst offshore oil accident in the history of the U.S.

As a result of this terrible tragedy, which killed workers and devastated Louisiana, Mississippi, and Alabama coastlines, President Obama issued a moratorium on drilling in the Gulf of Mexico for nearly a year.

As ATP went into bankruptcy, it blamed this moratorium for its failure. It relied heavily on the Gulf for its oil production and, without production, could not earn revenue. The company even tried to sue BP over the incident, but courts ruled that BP wouldn’t face those lawsuits.

The Rights of Maritime and Offshore Workers

Offshore drilling can cause many kinds of accidents. The Deepwater Horizon was an extreme example, but as ATP has seen, accidents can be smaller and still devastating.

Maritime workers involved in these accidents have a right to seek compensation for their injuries, to cover medical bills, and to cover lost wages and potential earnings.

Laws like the Outer Continental Shelf Lands Act are in place to protect offshore workers. If you have been injured in any offshore maritime work, you may be protected by this law.

To find out what your rights are and what you can do to get compensation for your injuries, contact a professional and experienced maritime lawyer.