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UK North Sea oil pipeline to resume service in early January, operator Ineos says | UK North Sea oil pipeline to resume service in early January, operator Ineos says |
(about 7 hours later) | |
Britain’s Forties oil and gas pipeline, one of the biggest in the North Sea, is being tested following repairs – and full flows should resume in early January, its operator Ineos said on Monday. | |
The closure of the pipeline since 11 December has pushed oil prices above $65 (£48) a barrel in recent weeks, their highest level since mid-2015. | |
Forties plays an important role in the global market as it is the biggest of the five North Sea crude streams underpinning Brent, a benchmark for oil trading in Europe, the Middle East, Africa and Asia. | Forties plays an important role in the global market as it is the biggest of the five North Sea crude streams underpinning Brent, a benchmark for oil trading in Europe, the Middle East, Africa and Asia. |
“The repair of the pipeline... is now mechanically complete and pressure testing is well under way,” Ineos said in a statement. | |
“A small number of customers are now sending oil and gas through the pipeline at low rates as part of a coordinated plan that allows Ineos to carefully control the flow and pressure in the system.” | |
The system, which carries about 450,000 barrels per day of crude to Britain, along with a third of the country’s total offshore natural gas output, was shut down after a crack was found. | The system, which carries about 450,000 barrels per day of crude to Britain, along with a third of the country’s total offshore natural gas output, was shut down after a crack was found. |
Ineos on Monday morning said the oil and gas processing facility Kinneil should restart in the next 24 hours. | Ineos on Monday morning said the oil and gas processing facility Kinneil should restart in the next 24 hours. |
“Based on current estimates, the company expects to bring the pipeline and Kinneil progressively back to normal rates early in the new year,” Ineos said. | |
Ineos was forced to declare force majeure on deliveries of Forties crude oil, natural gas and condensate, suspending its contractual obligations to customers by citing circumstances beyond its control. | Ineos was forced to declare force majeure on deliveries of Forties crude oil, natural gas and condensate, suspending its contractual obligations to customers by citing circumstances beyond its control. |
This is believed to be the first force majeure on a major North Sea production stream in decades. Ineos didn’t say when it expected to lift the force majeure. | This is believed to be the first force majeure on a major North Sea production stream in decades. Ineos didn’t say when it expected to lift the force majeure. |
Ineos, a privately-owned chemicals company based in Switzerland, bought the pipeline system from BP in late October. | Ineos, a privately-owned chemicals company based in Switzerland, bought the pipeline system from BP in late October. |
Reuters | Reuters |
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