Marathon Provides Hurricane Katrina Impact Update
Marathon Oil has begun damage assessments of all facilities in areas affected by Hurricane Katrina, and the Company is providing assistance to employees and neighboring communities impacted by the storm.
Activities are focused on the Company's Garyville, Louisiana, refinery, which has 245,000 barrels per day of crude oil processing capacity, as well as the Marathon-operated offshore oil and gas production platforms at South Pass (located 100 miles south of New Orleans) and Ewing Bank (located 130 miles south of New Orleans). Gross production from these facilities of approximately 18,500 barrels of oil per day (bopd) and 25 million cubic feet of natural gas per day (mmcfd), remains shut-in as a result of the storm. Marathon's total net production from these operated facilities, as well as other non-operated properties, is approximately 43,000 bopd and 110 mmcfd and this production remains shut-in as a result of the hurricane.
Marathon has deployed employee teams to assist with recovery and start-up activities. These activities will begin after the condition of all facilities has been assessed, any necessary repairs completed, and related services and infrastructure are available to support the operation of these onshore and offshore facilities. These teams also are determining the well-being of employees and their families and providing assistance to those in need.
Specific Facility Status: * Refining & Marketing -- Preliminary assessment of the Garyville refinery indicates no major structural damage to processing units or related facilities. A detailed inspection of all refinery components is underway to ensure their operational integrity and safety prior to start-up activities. The refinery was not flooded during the storm, and while power has been restored, the refinery is dependent upon the restoration of other utilities and pipeline operations for the operation of the facility. Work has begun to restart the refinery's boilers and to charge key processing units with feedstocks. Assuming no unusual start-up delays, the refinery could begin ramping up fuels production within the next three-to-five days. Marathon refineries in Catlettsburg, Kentucky, and Robinson, Illinois, are currently running at reduced rates due to the shutdown of Capline, the main crude oil pipeline from the Gulf Coast to the Midwest. Marathon's refining, marketing and transportation organization is currently supplying contracted volumes to its Brand and contracted customers. However, as a result of Hurricane Katrina and the reduced operations at the Garyville refinery and certain Midwest refineries, the Company is not able to fully supply non-contracted customers at this time. Recognizing the current strain on the industry's ability to supply these fuels, consumers are encouraged to conserve energy whenever possible. * South Pass and Ewing Bank Production Platforms -- Assessment teams re-boarded the platforms on Wednesday to conduct an initial inspection. Based upon this preliminary assessment, damage to the three South Pass platforms, which produce an average of 1,500 bopd and 7.5 mmcfd, ranges from minor to serious. Ewing Bank, which produces an average of 17,000 bopd and 17.5 mmcfd, sustained light damage and all critical equipment appears to be functional. There have been no spills or leaks from these facilities. Recovery teams are now planning for necessary repairs and the eventual resumption of production operations. The expected start-up date is not known at this time. * Pipeline Operations -- All Marathon operated pipelines along the Gulf Coast, as well as those in which the Company holds an interest, are being assessed. The expected startup dates are not known at this time.
"Our thoughts and prayers are with our employees, their families and our neighbors throughout the region," said Clarence P. Cazalot, Jr., president and CEO of Marathon. "The human toll resulting from Hurricane Katrina is still unfolding and difficult to comprehend. Our Marathon family is committed to providing assistance to those who have been devastated by this horrible tragedy."
Marathon has announced that it will contribute $1.5 million to the
American Red Cross to aid in Hurricane Katrina relief efforts. In addition,
the Company will also match dollar-for-dollar employee, retiree, dealer and
'jobber' donations to hurricane relief agencies. The Company is also
assessing the needs of its employees in the areas devastated by Hurricane
Katrina and will be providing assistance to these employees.
Operates 4 Offshore Rigs
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