Forbes.com: Shell to Keep Oil & Gas Platform Closed

Associated Press

06.07.2004, 15:13 PM

Shell Exploration & Production Co. will keep its Mars Tension Leg Platform oil and gas production facility shut down longer than anticipated, the company said Monday.

The company, a unit of oil joint venture Royal Dutch/Shell Group of Cos., said it shut down the Gulf of Mexico facility May 22 after discovering a small leak from an oil pipeline. After discovering signs of deterioration to a natural gas export line, the company said it would keep the facility closed longer than the three weeks that were originally anticipated.

"Our primary concerns are safety and mitigating environmental risk," said Shell Gulf of Mexico East asset manager Frank Glaviano. "Although the gas pipeline had not incurred a leak, based on the observed condition, we felt it prudent to also take the gas line out of service and repair its flexjoint in conjunction with the oil pipeline repair."

Shares of Royal Dutch recently traded up 1.21 percent to $50.96 and shares of Shell Transport and Trading were up 1.25 percent to $44.42 on the New York Stock Exchange.