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MarketWatch: Shell reports ‘operational upset,’ fire at oil facility in Alberta, Canada

By David Elliott
Last Update: 6:35 AM ET Nov 20, 2007

(Updates with background.)

LONDON (MarketWatch) — Anglo-Dutch oil major Royal Dutch Shell PLC said Tuesday an “operational upset” occurred at its 155,000 barrel-a-day Scotford Upgrader in Alberta, Canada, late Monday.

“At approximately 1600 Mountain Standard Time, or MST, today an operational upset occurred at the Scotford Upgrader east of Fort Saskatchewan, Alberta, when a leak occurred on the residue hydroconversion unit, which upgrades bitumen into synthetic crude oil,” Shell spokesman in London Saskia Kapinga said.

She said it was too early to quantify how much production has been impacted but an associated fire was extinguished at about 1700 MST and the leak, which contains mostly hydrogen, some light hydrocarbons and some hydrogen sulfide, has been since been contained.

No injuries were reported and all personnel have been accounted for.

The Scotford Upgrader is part of the Athabasca Oil Sands Project, near Fort Saskatchewan, Alberta, which produces 155,000 barrels of heavy crude oil a day in the form of bitumen.

Shell Canada owns a 60% share in the project, Chevron Canada Ltd. has a 20% share and Western Oil Sands LP a 20% share, according to Shell’s Web site.

(Nick Heath in London contributed to this article.)
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