Shell Readies Gulf Pipeline Restarts

Shell Readies Gulf Pipeline Restarts
Royal Dutch Shell is gearing up to restart oil pipelines off the U.S. Gulf Coast, potentially moving the region's top driller one step closer to restoring some production shut by Hurricane Ida.

(Bloomberg) -- Royal Dutch Shell Plc is gearing up to restart oil pipelines off the U.S. Gulf Coast, potentially moving the region’s top driller one step closer to restoring some production shut by Hurricane Ida.  

Most of the pipelines will be ready to operate within a week, according to a person familiar with the matter, who asked not to be named because they are not authorized to discuss the plan publicly. Shell declined to comment.

The conduits need to be up and running before restoring millions of barrels a day of oil production from offshore platforms that have been offline since Ida headed for Louisiana last month. But the pipeline restarts don’t necessarily mean output will follow.  

The storm disrupted U.S. crude production like no other hurricane had done before. Almost two weeks after the storm hit, more than two-thirds of U.S. Gulf output remain offline. Shell on Thursday declared force majeure on “numerous contracts” as it was still assessing the damage.

Shell will keep pipelines associated with its West Delta-143 offshore facility offline as assessments will continue for those assets, the person said. The facility serves as a transfer station for the Ursa, Medusa, Mars A and Olympus production fields and platforms. 

© 2021 Bloomberg L.P.


What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network.

The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.


Most Popular Articles