UpdateShell declares FM on some customers of Singapore refinery

02 October 2011 14:53  [Source: ICIS news]

(recasts throughout and adds details of force majeure on some customers)

BERLIN (ICIS)--Shell said on Sunday that it has declared force majeure on some of its customers following the shutdown of its refinery on Bukom Island in Singapore after the fire that raged there on 28–29 September.

“Force majeure has been declared on some of our customers,” said Lee Tzu Yang, the chairman of Shell Companies in Singapore, on the company’s website.

“We continue to be in discussions with our customers to address their supply of product needs and to minimise any potential impact to them,” he added, without identifying the customers.

Earlier on Sunday, the Singapore Civil Defence Force (SCDF) said it had handed over management of the site that was affected by the fire at the 500,000 bbl/day refinery back to the company.

“SCDF will begin to gradually scale down its resources starting from 09:00 [Singapore time, 01:00 GMT] today [2 October 2011], in preparation to move into the recovery phase which will be managed by Shell,” it said.

Lee said: “Following the handover [from SCDF], we have commenced an investigation, supported by experts and together with the relevant authorities, to establish the cause.”

“Once completed, we will be applying any [lessons] to avoid such an occurrence in future."

Singapore's English-language daily The Straits Times reported online that 50 firemen and 18 vehicles from SCDF have stayed on the island.

The refinery caught fire on 28 September and it took until late on 29 September to extinguish it.

The company, which has said it deeply regrets the incident, said on Friday it was in the process of shutting down the refinery, and possibly some downstream units as well.

The refinery on Bukom is Shell's largest in the world in terms of crude distillation capacity.

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By: Tahir Ikram
+65 6780 4359



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