Saturday August 12, 2006

BP sees Alaska repairs costing $100 million

news.yahoo.com :

BP expects the replacement of corroded pipelines at the Prudhoe Bay oil field in Alaska to cost around $100 million, a company source said, but the total cost to BP will likely be several times this figure. BP unexpectedly announced the phased shutdown of the U.S.'s largest oil field on Sunday to replace 16 miles of pipeline at the field after it discovered severe corrosion.

A spokesman said BP's average profit margin in the U.S. was $25 per barrel. This suggests a full outage would cost BP $2.6 million per day or $350 million if the field is fully shut down until the year-end. The U.S. government does not expect full production to resume before January 2007. Around $10 billion has been wiped off BP's market capitalization since the discovery of the corrosion was announced.

See also :

1. Major Alaskan oil field shutting down
2. More BP Alaska pipeline news
3. BP's Prudhoe Bay a "giant water field"

(2006-08-12 15:46:37 SGT) [Energy] Permalink

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