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BP Provide Hurricane Katrina Update

BP LogoExploration and Production
BP has accounted for all but one of its employees located in the area impacted by Hurricane Katrina. Safety of people remains the company's primary concern.

BP has not identified any significant issues with the BP-operated platforms in the deepwater Gulf of Mexico. Most of BP's oil and gas production from these facilities is shut-in due to the ongoing lack of power and the consequent failure of the delivery infrastructure.

BP teams have boarded the deepwater facilities and continue to conduct integrity surveys and minor repairs. Some production has been restarted. Other facilities won't be restarted until export routes are inspected and deemed operational. BP's Pascagoula gas plant remains idle due to a lack of power and lack of production from shut in oil and gas fields.

BP's ongoing inspections have revealed a number of problems with its properties located in the shallow waters of the Gulf. Several Shelf platforms have toppled, and some are listing. These platforms are responsible for relatively small production volumes. The company has also identified and is evaluating several small sheens in the region. The company is responding to these and they are believed to be very minor.

At this time a significant portion of our Gulf natural gas production remains shut in and there is no estimate for when it will return to normal.

Refining and Marketing
Hurricane impacts and power issues are also affecting the fuel supply situation in the United States. Gasoline pipelines from the US Gulf coast have restarted, but have not yet returned to normal throughput levels.

As a result of these pipeline disruptions, BP continues to experience shortages at some fuel terminals and some retail outlets are experiencing outages. Most of these outages are occurring in the US Southeast which is served by pipelines from the Gulf coast. BP staff are working around-the-clock to minimize supply disruptions and the impact on consumers.

The Department of Energy has issued broad waivers for fuel specifications which is helping the industry increase its production of gasoline and diesel fuel. BP is increasing fuel production at its refineries and bringing overseas cargos of gasoline into US ports. The company has also sourced additional truck and marine resources to distribute fuel.

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Posted 05/09/05

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