Argus Media Limited

09/08/2021 | News release | Distributed by Public on 09/08/2021 09:36

Occidental’s Gulf platforms suffered no storm damage

Occidental Petroleum's offshore platforms in the US Gulf of Mexico did not incur any damage as a result of Hurricane Ida.

Three of its 10 platforms have restarted output, while another three are preparing to start up, according to a regulatory filing. The remaining four remain off line as the company works with its partners to assess the potential impact to third-party midstream and downstream infrastructure.

Occidental's shore-based support facilities did sustain damage and the company has temporarily relocated some operations elsewhere.

'As our operations in the Gulf of Mexico are reliant upon third parties, we cannot provide a timeline for full restoration of operations at this time,' Occidental said.

Offshore operators have been slow to restore output that was suspended before Ida rolled through the region at the start of last week. As of yesterday, the amount of offshore oil output shut in was 79pc, or 1.4mn b/d, according to the Bureau of Safety and Environmental Enforcement (BSEE). Issues that may be hindering the resumption of progress include damage to structures like Shell's West Delta-143 shallow water platform, which serves as a hub for numerous offshore production flows.

US independent producer Murphy Oil is withdrawing its production guidance as it awaits third-party downstream reports due to the hurricane.

The company said in a filing that its operated facilities were re-manned shortly after the storm and are ready to restart production. Net output is currently around 9,000 b/d of oil equivalent (boe/d), with 1,000 boe/d down for repairs, and there are no signs of any pipeline leaks.

BP said it is in the process of restarting its four Gulf of Mexico platform, with Atlantis and Mad Dog starting up and Thunder Horse and Na Kika expected to follow suit in the coming days.

Port Fourchon recovery

At Port Fourchon, Louisiana, the staging base for ships that supply equipment and crews for many offshore operators, officials said they have begun to welcome back 'large customers' after its waterways were cleared of storm-related obstructions. Companies like BP and BHP moved out operations from the port after Ida, with some moving their onshore base camps and heliports to other ports and sites further away.

The port did not confirm which companies are resuming operations, but said it has re-established temporary fire and emergency services.

Murphy said its Port Fourchon shorebase is reopening in the near term, and backup locations are operational. The company's King's Quay floating production system arrived shoreside on schedule in September with no storm impact.

Chevron said its Fourchon terminal used for routing production from offshore platforms remains shut-in.

By Stephen Cunningham