-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 ryd8j5wLMFUgLOQVtCH/mA==

<SEC-DOCUMENT>0001010549-05-000104.txt : 20050208
<SEC-HEADER>0001010549-05-000104.hdr.sgml : 20050208
<ACCEPTANCE-DATETIME>20050208150617
ACCESSION NUMBER:		0001010549-05-000104
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050204
FILED AS OF DATE:		20050208
DATE AS OF CHANGE:		20050208

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLUE DOLPHIN ENERGY CO
		CENTRAL INDEX KEY:			0000793306
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				731268729
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		801 TRAVIS SUITE 2100
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002-5729
		BUSINESS PHONE:		7132277660

	MAIL ADDRESS:	
		STREET 1:		11 GREENWAY PLAZA SUITE 1606
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77046

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MUSTANG RESOURCES CORP
		DATE OF NAME CHANGE:	19900122

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ZIM ENERGY CORP
		DATE OF NAME CHANGE:	19870921

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SIEM IVAR
		CENTRAL INDEX KEY:			0001187993

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-15905
		FILM NUMBER:		05583686

	BUSINESS ADDRESS:	
		STREET 1:		801 TRAVIS SUITE 2100
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>bluedol4siem020405_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-02-04</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000793306</issuerCik>
        <issuerName>BLUE DOLPHIN ENERGY CO</issuerName>
        <issuerTradingSymbol>BDCO</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001187993</rptOwnerCik>
            <rptOwnerName>SIEM IVAR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>801 TRAVIS</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 2100</rptOwnerStreet2>
            <rptOwnerCity>HOUSTON</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>77002</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chairman &amp; CEO</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2005-02-04</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>6891</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>.80</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>614803</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Common Stock Options</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>.80</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-02-04</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>11250</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>.80</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-02-04</value>
            </exerciseDate>
            <expirationDate>
                <value>2015-02-03</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>11250</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>59250</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Stock issued by Company into the 401K Plan, quantity not determined until February 4, 2005.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Ivar Siem</signatureName>
        <signatureDate>2005-02-08</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----