UpdateOil firms move staff, shut output as Ida downgraded

09 November 2009 15:45  [Source: ICIS news]

(adds updates throughout)

HOUSTON (ICIS news)--Oil companies in the Gulf of Mexico are evacuating workers and assessing production ahead of the arrival of Tropical Storm Ida, they said on Monday. 

Some producers have already cut output while others were continuing to monitor the progress of Ida, which was expected to make landfall on Tuesday morning.

The US National Hurricane Center said Ida weakened to a tropical storm early on Monday with 70 mile/hour (112 kilometres/hour) winds, but warnings remained along 300 miles of the Gulf Coast from Louisiana to the Florida panhandle, with landfall projected near Mobile, Alabama.

The storm had strengthened to 105 miles/hour, or Category 2 hurricane strength, on Sunday afternoon, but lost strength in the cooler November waters of the northern Gulf and was not expected to regain hurricane force, forecasters said.

The Gulf of Mexico accounts for more than 25% of US oil production.

BP, one the Gulf's largest oil producers, said its Severe Weather Team would continue to monitor the development of Ida and that some precautionary curtailment of production had taken place.

“As a precaution we will soon complete our pre-storm preparation and have secured equipment and facilities. We have evacuated most of our non-essential personnel while maintaining essential operations personnel to continue to produce as conditions allow," BP said.

“In the event that the storm worsens, operations personnel will work to ensure a safe and efficient shut in of production and to also position the facilities for a safe and efficient re-start,” it added.

In a Twitter update, Chevron said it had begun to evacuate personnel and that some production has been shut in.

Chevron also said it had been continuing to operate as it took necessary steps to safely secure its Pascagoula refinery in advance of the storm and was carefully monitoring the track and forecast of Ida.

ExxonMobil said on its website that currently there was no Gulf of Mexico storm activity impacting its operations. 

Shell said that drilling wasn’t affected, and that it was securing offshore facilities. Several other companies had evacuated non-essential workers, according to earlier reports.

Meanwhile, Enterprise Products said its Gulf-based Independence Hub - a major supplier of natural gas to the US - was shut as a precaution due to Ida, according to reports.

Natural gas is a major feedstock and power supply for chemicals production.

A hurricane warning was issued late Sunday for areas from Pascagoula, Mississippi, east to Indian Pass, Florida, but that has since been discontinued.

Concerns over the hurricane helped to push up crude oil prices by nearly $2/bbl in early Monday trading.

(Additional reporting by Franco Capaldo and John Richardson)

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