Marathon Says Major Damage at South Pass Platforms Due to Katrina

South Pass Louisiana
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Marathon said efforts continue to resume refining operations at the Company's 245,000 barrel per day Garyville, La., refinery. Baring any unforeseen problems, expectations are that all seven Marathon refineries will be operating at capacity on Monday. Marathon's refining capacity is 948,000 barrels of oil per day. Marathon Pipe Line LLC operations are returning to normal, parallel with the refinery.

Marathon has received approval for a loan of 1.5 million barrels of oil from the Strategic Petroleum Reserve. This oil will assist in providing crude oil supply to the Company's Midwest refineries.

Oil & Gas Production

Assessment and repair teams have re-boarded all Marathon-operated production platforms in the Gulf of Mexico. These facilities are located on South Pass (100 miles south of New Orleans) and Ewing Bank (130 miles south of New Orleans). The Ewing Bank platform sustained minor damage to piping, catwalks, handrails and some electrical equipment. Repairs are expected to be completed by late this weekend or early next week.

The Company's three South Pass platforms have major damage, including structural damage throughout two of the three facilities. Assessment teams are developing repair plans; however, operational readiness and start-up timing are uncertain at this time due to the condition of the platforms.

While repairs are proceeding at both Ewing Bank and South Pass, shore-based receiving facilities at Venice, Louisiana, which are operated by others, have been more seriously affected by the storm. As such, the restart of oil and gas production will be dependent upon not only the completion of necessary repairs to the platforms, but also on the availability of shore-based facilities.

Employee and Community Relief Efforts

Marathon continues to assist its more than 650 employees and their families in Louisiana, Mississippi and Alabama who were affected by the storm. Assistance includes food, water, generators and other household items, as well as providing temporary housing for those whose homes were seriously damaged or destroyed. The company also is providing employees in these three states with interest-free loans of up to $10,000 to assist in their recovery efforts. Marathon has also brought in employees from other parts of the country to assist in both humanitarian and operations support activities.

General Information About Marathon Operations and Relief Efforts

  • Marathon's Ewing Bank platform produces an average of 17,000 gross barrels of oil per day (bopd) and 17.5 gross million cubic feet of natural gas per day (mmcfd).
  • The Company's South Pass platforms produce an average of 1,500 gross bopd and 7.5 gross mmcfd.
  • Production from these facilities remains shut-in as a result of the storm.
  • Marathon's total net production from its operated facilities, as well as other non-operated properties, is approximately 43,000 bopd and 110 mmcfd and this production also remains shut-in.
  • In addition to the employee relief assistance noted above, Marathon also is providing assistance to other Hurricane Katrina victims through a $1.5 million contribution to the American Red Cross.
  • In addition, the Company also will match dollar-for-dollar employee, retiree, dealer and 'jobber' donations to hurricane relief agencies.

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