Shell Restarts Production from Hurricane-hit Platforms in Gulf of Mexico

Credit: Mike Duhon Productions / via Shell
Credit: Mike Duhon Productions / via Shell

Shell said on Friday it had restarted production at its offshore Mars and Ursa in the Gulf of Mexico and began exporting oil and gas through a transfer facility, which was shut due to damage from Hurricane Ida.

The oil major was the hardest-hit producer from Ida, which tore through the Gulf of Mexico in August and removed 28 million barrels from the market.

Shell's West Delta-143 offshore facility, which transfers oil and gas from three major fields for processing at onshore terminals, was originally expected to be offline for repairs until the end of 2021.

The fields are a key source of Mars sour crude, a grade prized by oil refiners in the United States and Asia. The disruptions hampered exports and raised crude prices, as buyers searched for substitutes.

About 200,000 to 250,000 barrels per day of oil supply from the Gulf of Mexico were expected to be affected due to damage to the facilities from Ida, research firm Rystad Energy had said. 

(Reporting by Arathy S Nair in Bengaluru; Editing by Maju Samuel)

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