UPDATE 1-U.S. Gulf of Mexico oil work starts to ramp up after storm falters

Sun Oct 6, 2013 12:50pm EDT

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HOUSTON, Oct 6 (Reuters) - Oil and gas production in the U.S. Gulf of Mexico
was starting to ramp up toward normal on Sunday after Tropical Storm Karen lost
potency off the Gulf Coast, officials cancelled evacuation orders, and energy
companies started to restaff offshore platforms.
    Storm warnings had prompted energy firms to shut in nearly two-thirds of oil
output and half of natural gas production as of Saturday, the government said,
but by that time the weather system was already weakening and Chevron Corp
 was returning workers to offshore platforms after evacuations.
 
    BP and Marathon Oil Corp said on Sunday they were sending
workers back out to their facilities. The Louisiana Offshore Oil Port reopened
and was expected to receive a tanker later on Sunday.
    The U.S. Gulf produces about 1.3 million barrels of oil a day (bpd),
according to the U.S. Energy Information Agency. It is responsible for about 19
percent of U.S. oil production and 6 percent of natural gas output.
    The Gulf Coast is lined with crude oil refineries that together account for
45 percent of U.S. refining capacity. A third of U.S. gas processing capacity is
also located along the coast.
    At least one refinery reduced rates on Friday owing to a lack of crude oil
supplies - Motiva Enterprises' 235,000 barrels per day Norco,
Louisiana plant. 
    Chevron's Pascagoula refinery also had reportedly shut a crude distillation
unit, apparently for work unreleated to the storm.
    No other refineries reported disruptions.
    The U.S. National Hurricane Center downgraded Karen to a tropical depression
after its top sustained wind speeds dropped to 35 mph (55 kph). All tropical
storm warnings and watches were discontinuted. 

OFFSHORE PRODUCTION IMPACT 
--------------------------------------------------------------------------- 
    OIL/GAS 
Company     Asset            Capacity oil/gas         Date Shut   Restarted  

Petrobras  Cottonwood        20,000 boepd             Oct 4        Restaffing
BP         Atlantis          200,000 bpd/180 mmcf/d   Oct 4        Restaffing
BP         Thunder Horse     250,000 bpd/200 mmcf/d   Oct 3        Restaffing
BP         Mad Dog           80,000  bpd/60 mmcf/d    Oct 3        Restaffing
BP         Na Kika           130,000 bpd/550 mmcf/d   Oct 3        Restaffing
    
Hess       Baldpate          60,000 bpd/200 mmcf/d    Oct 3         N/A
    
BHP        Shenzi            120,000 bpd/50 mmcf/d    Oct 3         N/A
           Neptune            50,000 bpd/50 mmcf/d    Oct 3         N/A         
   

Anadarko   Ind Hub           1 bcf/d                  Oct 3         N/A  
           Marco Polo        120,000 bpd.300 mmcf/d   Oct 3            N/A
           Constitution      70,000 bpd/200 mmcf/d    Oct 3            N/A
           Neptune           14,000 bpd/23 mmcf/d     Oct 3         N/A
    
Exxon      N/A               1,000 bpd gross liquids  Oct 3         N/A

Williams   Canyon Station    500 mmcf/d               Oct 3         N/A 
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  REFINERIES NEAREST STORM 
    
Company      Location             Capacity         Status 

Chalmette    Chalmette             193             Monitoring
    
Chevron      Pascagoula MS         330             CDU shut, monitoring
Exxon        Baton Rouge LA        502.5           Monitoring 

Motiva          Convent LA          235               Monitoring
Motiva       Norco LA              233             Reducing rates 

Valero       Norco LA              205             Monitoring 
             Meraux LA             125             Monitoring
    
Phillips 66  Alliance LA           252             Normal        
    
Marathon     Garyville LA          522             Monitoring 
    
------------------------------------------------------------------------    
  PIPELINES, PORTS
 
  * Destin Pipeline -- Working to restore normal operations and inspecting
equipment after declaring force majeure. 
  * The Louisiana Offshore Oil Port (LOOP) said on Sunday it reopened.
 
  * Enterprise Products Partners evacuated four shallow-water junction
platforms that receive oil and gas to deliver to onshore facilities. Those
include West Delta 68, which connects natural gas output from Anadarko's
Independence Hub with Kinder Morgan's Tennessee Gas Pipeline. 
               
-------------------------------------------------------------------------    
  PREPARATION, EVACUATIONS
-------------------------------------------------------------------------       
    * Petrobras -- Shut in production and evacuated its Cottonwood
field in the Gulf.    
    * BP -- Restaffing and aiming to restore production at all
company-operated deepwater facilities. 
    * Hess Corp -- Shut in production and evacuating a platform.
 
    * Anadarko Petroleum Corp -- Shut in production and fully evacuating
four platforms. 
    * Exxon Mobil Corp -- Shutting in 1,000 bpd gross liquids
production, evacuating non-essential workers. 
    * BHP Billiton -- Shut in production and fully evacuating at both
Gulf platforms. 
    * Williams Cos -- Shut production at 500 mmcf/d shallow-water Canyon
Station platform, workers at Chevron Corp's Blind Faith and ENI's
 Devil's Tower platforms reduced to core crews after noon-essentials
evacuated. 
    * Royal Dutch Shell -- Evacuating non-essential workers at Eastern
and Central Gulf facilities, no production impact. 
    * Chevron Corp -- Returning workers to platforms. 
    * BP Plc -- Evacuating non-essential workers, no production impact.
 
    * Murphy Oil Corp -- Evacuating non-essential workers, no production
impact. 
    * Marathon Oil Corp --  Returning non-essential workers to its
operated Ewing Bank platform. 
    * ConocoPhillips -- Expects no impact as single operated platform
far west of storm's path, no evacuations.
    * Petrobras -- Monitoring storm, taking all necessary
precautions.
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