HOUSTON, Dec 12 (Reuters) - W&T Offshore ( WTI ), an

independent driller operating in the U.S. Gulf of Mexico, has

asked a federal judge to block insurance companies' demands for

$250 million in additional collateral for taking apart old oil

infrastructure.

The offshore drilling industry faces mounting pressure to

provide bonds for decommissioning oil and gas infrastructure in

federal waters. The Federal Bureau of Ocean Energy Management

(BOEM) in June enforced a final rule that amended its financial

assurance regulations in a bid to ensure the industry covers

decommissioning costs, not the taxpayer.

The BOEM estimates offshore drillers would collectively pay

just under $7 billion as a result in new supplemental financial

assurances to cover the potential costs of decommissioning

activities.

As of June 2023, more than 2,700 wells and 500 platforms

were overdue for decommissioning in the Gulf of Mexico,

according to the U.S. Government Accountability Office.

In the lawsuit, filed on Wednesday in the U.S. District

Court for the Southern District of Texas, W&T Offshore ( WTI ) asked

Judge Keith Ellison to declare that the insurers have colluded

to damage the company by jointly demanding additional collateral

and premiums.

The company claims the insurers used BOEM's final rule to

demand additional collateral for surety, for which the operator

has already paid premiums.

Houston-based W&T Offshore ( WTI ) did not immediately provide a

comment.

Endurance Assurance Corp and Lexon Insurance Co, both named

in the suit, did not immediately respond to requests for

comment.

Opponents said BOEM's final rule would disproportionately

affect smaller companies that lack investment grade ratings or

sufficient proven oil reserves. Oil majors are more likely to

have large reserves, or meet credit criteria exempting them from

putting up more money to cover potential future decommissioning.

Days before the BOEM's final rule was enforced, Texas,

Louisiana and Mississippi sued the government in a bid to block

it.

The U.S. Gulf of Mexico produces roughly 1.74 million

barrels per day of oil, according to the last government

figures, about 13% of total U.S. output.