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Leak sparks partial BP shutdown | Leak sparks partial BP shutdown |
(about 12 hours later) | |
Oil giant BP has shut down a quarter of its operations at its Alaskan oilfield after discovering a leaking pipe. | Oil giant BP has shut down a quarter of its operations at its Alaskan oilfield after discovering a leaking pipe. |
BP said it shut down some production at the Prudhoe field after finding water leaking from a pipe used in a facility that separates water from crude oil. | |
However, the news had little effect on oil prices which fell on Tuesday. | However, the news had little effect on oil prices which fell on Tuesday. |
In the US, light sweet crude slipped $1.30 to close at $64.97, while in London Brent crude closed 97 cents lower at $69.52. | In the US, light sweet crude slipped $1.30 to close at $64.97, while in London Brent crude closed 97 cents lower at $69.52. |
Analysts said traders had shrugged off the leak as minor, and were instead taking profits on recent share gains. | |
Production cut | Production cut |
The Prudhoe facility produces around 400,000 barrels of oil a day. | The Prudhoe facility produces around 400,000 barrels of oil a day. |
"We expect the facility to be down a few days while repairs are made," said BP spokesman Ronnie Chappell. The group expects production to fall by just 25,000 barrels a day. | "We expect the facility to be down a few days while repairs are made," said BP spokesman Ronnie Chappell. The group expects production to fall by just 25,000 barrels a day. |
News of the leak comes as a US criminal investigation takes place into a incident at the facility last year which led to 200,000 gallons of oil leaking from the site. | News of the leak comes as a US criminal investigation takes place into a incident at the facility last year which led to 200,000 gallons of oil leaking from the site. |
At a hearing last week, BP America chief Bob Malone admitted there had been "extreme budget pressures at Prudhoe Bay", which had affected maintenance work. | |
BP has also launched an independent review of corrosion inspection and monitoring of all its pipelines at Prudhoe and across Alaska. | BP has also launched an independent review of corrosion inspection and monitoring of all its pipelines at Prudhoe and across Alaska. |
Last year, it vowed to spend $550m maintaining its pipeline network in Alaska, including the replacement of 16 miles of oil transit pipelines. | Last year, it vowed to spend $550m maintaining its pipeline network in Alaska, including the replacement of 16 miles of oil transit pipelines. |
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