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Shell, ExxonMobil stall oil production owing to a pipeline leak

Exxon Shell
Shell has temporarily suspended oil production after a subsurface leak was discovered on Exxon’s Hoover Offshore Oil Pipeline System

A subsurface leak in an ExxonMobil offshore pipeline has stalled oil production at the Perdido platform, media reports said. Perdido platform which is located in the Gulf of Mexico produces 100,000 barrels of crude each day.

The platform is located 322 kilometres south of Galveston. It is a joint venture between three oil giants Shell, BP and Chevron.

Earlier this month, Shell temporarily suspended oil production after a leak was discovered on Exxon’s Hoover Offshore Oil Pipeline System. With that, the deepwater Perdido platform is shut, media reports said.

ExxonMobil spokesperson told the media, “We anticipate resuming flow on the line in a timely manner once it is safe to do so.” The Hoover Offshore Oil Pipeline carries oil from offshore oilfields to the Quintana Terminal near Freeport, Texas, according to the Exxon website.

Currently, Exxon’s Hoover Offshore Oil Pipeline System is shut for repair.  Recently, Shell pulled out from a deal established with Gazprom Neft, an oil subsidiary of Gazprom, media reports said. Under the terms of the deal, both companies were to jointly develop resources of five fields and licence blocks in the Yamal-Nenets region.

It was, in fact, noted to be a landmark deal for Shell and Gazprom Neft. With the split, Gazprom Neft will independently develop the licence blocks based on the previously approved work plan, media reports said. It is reported that the project’s initial investment was worth €1.6 billion and production to reach 10 million tonnes of oil equivalents. Production in the first field was slated for by the end of 2020.

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