8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K


                                 CURRENT REPORT


                       PURSUANT TO SECTION 13 OR 15(D) OF
                     THE SECURITIES AND EXCHANGE ACT OF 1934

               Date of Report: (Date of earliest event reported):
                      September 7, 2005 (September 2, 2005)


                           Blue Dolphin Energy Company
             (Exact name of registrant as specified in its charter)



         Delaware                       0-15905                    73-1268729
(State of Incorporation)       (Commission file Number)         (IRS Employer
                                                             Identification No.)

                             801 Travis, Suite 2100
                              Houston, Texas 77002
              (Address of Registrant's principal executive offices)

                                 (713) 227-7660
              (Registrant's telephone number, including area code)



Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

|_|      Written communication pursuant to Rule 425 under the Securities Act (17
         CFR 230.425)

|_|      Soliciting  material pursuant to rule 14a-12 under the Exchange Act (17
         CFR 240.14a-12)

|_|      Pre-commencement  communications  pursuant to Rule  14d-2(b)  under the
         Exchange Act (17 CFR 240.14d-2(b))

|_|      Pre-commencement  communications  pursuant to Rule  13e-4(c)  under the
         Exchange Act (17 CFR 240.13e-4(c))





ITEM 8.01     OTHER EVENTS

         On  September  2,  2005,  Blue  Dolphin  Energy  Company,   a  Delaware
corporation  ("Blue Dolphin"),  issued a press release reporting that it expects
to  receive  a  payment  of  approximately  $1.3  million,  subject  to  certain
adjustments,  for estimated past  production  from a  reversionary  after-payout
interest in High Island Block 37.

         A copy of the press  release  is filed as  exhibit  99.1  hereto and is
incorporated herein by reference.



ITEM 9.01         FINANCIAL STATEMENTS AND EXHIBITS.

         (c)      Exhibits

                  99.1     Press Release issued September 2, 2005.


SIGNATURE



         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended,  the  registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.

Date:   September 7, 2005.

                                                     BLUE DOLPHIN ENERGY COMPANY


                                                      /s/ Gregory W. Starks
                                                     ---------------------------
                                                     By: Gregory W. Starks
                                                     Treasurer













                                INDEX TO EXHIBITS


Exhibit           Description of Exhibit
- -------           ----------------------

99.1              Press Release issued September 2, 2005.

EX-99.1

                                  Exhibit 99.1

                                  NEWS RELEASE



FOR IMMEDIATE RELEASE                                          September 2, 2005


Houston, Texas - Blue Dolphin Energy Company (NASDAQ Symbol: BDCO)


BLUE DOLPHIN ENERGY REPORTS EXPECTED RECEIPT OF NET REVENUES

On September 2, 2005, Blue Dolphin Energy Company, a Delaware corporation ("Blue
Dolphin"),  reported that it expects to receive a payment of approximately  $1.3
million,  subject to certain  adjustments,  for estimated past production from a
reversionary  after-payout  interest in High Island Block 37. Payout occurred on
or about July 1, 2004.

Currently, there are two wells producing in the High Island Block 37 field.


Blue Dolphin  Energy Company is engaged in the gathering and  transportation  of
natural gas and condensate.  Questions  should be directed to Gregory W. Starks,
Treasurer, at the Company's offices in Houston, Texas, 713-227-7660.

Certain of the  statements  included  in this  press  release,  which  express a
belief, expectation or intention, are "forward-looking"  statements as that term
is  defined  in the  Securities  Act of 1933,  as  amended,  and the  Securities
Exchange  Act of 1934,  as  amended.  The  words  "expect,"  "plan,"  "believe,"
"anticipate,"  "project,"  "estimate,"  and similar  expressions are intended to
identify forward-looking  statements.  These forward-looking  statements are not
guarantees of future  performance or events and such statements involve a number
of risks, uncertainties and assumptions,  general economic conditions,  interest
rates,  and other  factors.  Should one or more of these risks or  uncertainties
materialize or should the underlying assumptions prove incorrect, actual results
and outcomes may differ  materially from those indicated in the  forward-looking
statements.  Readers  are  cautioned  not  to  place  undue  reliance  on  these
forward-looking statements,  which speak only as of the date hereof. The Company
undertakes  no  obligation to republish  revised  forward-looking  statements to
reflect  events  or  circumstances  after  the date  hereof  or to  reflect  the
occurrence of unanticipated events.