Oil & Gas Journal: Shell provides update on operational impact of Hurricane Katrina: Friday 9 Sept 05

Offshore staff

(Gulf of Mexico)-Shell Oil says that production is now flowing and ramping up from all Shell-operated assets in the Western GoM that were shut in because of Hurricane Katrina. Production has resumed at Auger, Brutus, Bullwinkle, Cougar, Enchilada, North Padre Island, and West Cameron 565. In the Eastern GoM, the company's Fairway asset and Yellowhammer Gas Processing Plant near Mobile Bay are operating normally.

Shell's net GoM production from Shell-operated and outside-operated fields for the first half of 2005 averaged 450,000 boe/d. Shell's net GoM production has returned to 160,000 boe/d. Significant efforts continue as Shell makes a comprehensive assessment of its hurricane-impacted assets (Mars, Ursa, Cognac, and West Delta 143) as well as of pipelines and other related onshore processing/handling facilities that transport and receive production.

Pending full assessment and evaluation of infrastructure and assets, it is expected that about 60% of total production will be restored to pre-hurricane levels within Q4, 2005. The situation with respect to the remaining production, mainly from the Mars and Ursa area, Mensa, and Cognac, is still being assessed, but production from these facilities may not be feasible during the fourth quarter, depending on options available for recovery.

09/09/05

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