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Shell says restarting US offshore output, pipelines


UPDATE 1-Shell says restarting US offshore output, pipelines

Fri Sep 5, 2008 2:46am EDT

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NEW YORK, Sept 4 (Reuters) – Shell Oil (RDSa.L: QuoteProfileResearchStock Buzz) said on Thursday it expected to restart the bulk of its offshore oil and gas production over the next several days following shutdowns triggered by Hurricane Gustav, and expected its offshore pipeline system to be ready to handle the output.

The company added that it had restarted a long section of its 1.2 million barrel-per-day Capline crude oil pipeline from Mississippi to Illinois and expected to restart the rest of the line over the weekend.

The company plans to test its Houma-to-Houston pipeline later today, it said in a press release.

Shell said it found only minor topside damage on its Mars, West Delta 143, and Cognac offshore platforms which would likely delay the restart of production from those platforms until no sooner than next week. It said most of its other fields would be restarted late this weekend.

Shell is among the largest producers in the Gulf of Mexico and operates more than 1,200 miles of offshore pipelines, more than 600 miles of onshore pipelines, and over 10 terminals throughout the Gulf of Mexico and southern Louisiana with a capacity exceeding 1.5 million barrels of crude per day.


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