HOUSTON — bp Plc and Chevron Corp. said on Monday they have shut in production at offshore oil platforms in the Gulf of Mexico (GoM), as a powerful Hurricane Ian bore down on the top US offshore production region, according to a Reuters report.
The category 2 storm was in the Caribbean and forecast to become a major hurricane within two days. It was packing 100-mph (161-kph) winds and expected to rapidly intensify as it crosses the Gulf's warm waters, the National Hurricane Center (NHC) said.
The storm is the first this year to disrupt oil and gas production in the US GoM, which accounts for about 15% of the nation's crude oil and 5% of dry natural gas production.
Occidental Petroleum and Hess said they were implementing measures for facilities in the GoM. Spokespeople declined further comment.
Hurricane Ian is forecast to reach its peak intensity over the southeastern GoM in 36 hours, said NHC forecaster Brad Reinhart in a note Monday evening.
"Given the storm's slow forward speed, hurricane-force winds will likely last for a long time," said Colorado State University researcher Phil Klotzbach, who forecast the storm would move toward Tampa, Fla.
bp said it has evacuated personnel from its 130,000-bbl/d Na Kika and from its 250,000-bbl/d Thunder Horse platform. Na Kika also produces 550 MMcf/d of natural gas, and Thunder Horse 200 MMcf/d.
"We will continue to monitor weather conditions closely to determine next steps," bp said in a statement.
Crude grade Thunder Horse strengthened to a premium of 25 cents to US crude futures, from a discount of $1.20 on Friday. Mars Sour, considered the benchmark for US coastal grades, also firmed to a discount of $1.
Chevron has begun removing all personnel from its Petronius and Blind Faith platforms and shutting in its output, the company said. The two account for about 105,000 bbl/d of oil production and 90 MMcf/d of gas output.
Other Chevron-operated GoM assets remain at normal levels, a spokesperson said.
Hurricane Ian is not a threat to the rigs in the central GoM, Joe Bastardi, chief forecaster at analytics firm WeatherBELL said. Much of the oil production platforms are in the region.
Murphy Oil and Equinor said they did not anticipate any impact to their operations, while Shell Plc said it was closely monitoring the storm's track and there was no impact to its Gulf operations.
09.26.2022
