1. Organization

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Company Operations

Blue Dolphin Energy Company (referred to herein, with its predecessors and subsidiaries, as “Blue Dolphin,” “we,” “us” and “our”), a Delaware corporation, was formed in 1986 as a holding company and conducts substantially all of its operations through its wholly-owned subsidiaries. Our operating subsidiaries include:

-   Lazarus Energy, LLC (“LE”), a Delaware limited liability company (petroleum processing assets);

-   Lazarus Refining & Marketing, LLC (“LRM”), a Delaware limited liability company (petroleum storage and terminaling);

-   Blue Dolphin Pipe Line Company, a Delaware corporation (pipeline operations);

-   Blue Dolphin Petroleum Company, a Delaware corporation (exploration and production activities);

-   Blue Dolphin Services Co., a Texas corporation (administrative services);

-   Blue Dolphin Exploration Company (“BDEX”), a Delaware corporation (exploration and production investment); and

-   Petroport, Inc., a Delaware corporation (inactive).

Effective February 15, 2012, Blue Dolphin acquired 100% of the issued and outstanding membership interests of LE from Lazarus Energy Holdings, LLC (“LEH”), a Delaware limited liability company (the “LE Acquisition”). The LE Acquisition was accounted for as a reverse merger using accounting principles applicable to reverse acquisitions whereby the financial statements subsequent to the date of the transaction are presented as a continuation of LE (the legal subsidiary). See “Note (4) LE Acquisition” of this report for further information related to the LE Acquisition.