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Forbes: Shell to Shut Down, Repair Pipelines

Forbes: Shell to Shut Down, Repair Pipelines

Associated Press


Posted 11 August 04

Shell Exploration & Production Co., the discovery and development arm of oil and natural gas giant Royal Dutch/Shell Group, said Tuesday that it will shut down the Mars tension leg platform for about two weeks, starting Nov. 4, to replace flexjoints on its Mississippi oil and natural gas lines.

Shell discovered damage to the oil pipeline flexjoint on May 22, and subsequent inspections of the natural gas line also showed signs of flexjoint deterioration. The company decided to make temporary repairs to both lines while the flexjoints were refurbished. Production resumed on June 28, when the company said that the platform would be shut down again for installation of the repaired flexjoints.

Although the flexjoints should be ready for installation in September, the company will delay the operation until early November for logistical reasons.

“We feel that the weather conditions at that time will be more conducive to efficiently and safely completing the operations,” said Frank Glaviano, Gulf of Mexico east asset manager.

Shares of Royal Dutch Petroleum Co., a 60 percent owner of Royal Dutch/Shell Group, were up 59 cents, or 1.2 percent, at $49.99 on the New York Stock Exchange. Shell Transport & Trading Co. shares were up 1.7 percent, or 74 cents, at $44.26 on the New York Stock Exchange.

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