New York — A damaged oil pipeline that blocked output at seven offshore U.S. Gulf of Mexico platforms could be replaced by the end of the day, a Louisiana port official said on Friday, as producers took steps to reactivate some of the halted production.
A failed flange connecting two onshore pipelines operated by Shell in Louisiana caused an estimated two barrels of oil to leak, said Chett Chiasson, executive director of Greater Lafourche Port Commission.
The oil – around 80 gallons in total – has been removed.
Chevron is ramping up production at its Jack/St. Malo, Tahiti, and Big Foot platforms, they added.
About 600,000 barrels per day of oil production was halted by the shut-ins, according to two people familiar with offshore operations, who asked not to be named.
Shell’s three platforms deliver Mars sour crude, which is an oil grade popular with refiners in the United States and Asia. Mars crude oil prices initially strengthened to about a 50-cent discount to U.S. crude oil futures after news of the leak, before easing to around a $1 discount.
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