Marathon Oil - Hurricane Rita Update
Marathon Oil issued the following update concerning company operations impacted by Hurricane Rita.
Marathon's Texas City, Texas, refinery successfully restarted on Sept. 28 and is operating at normal capacity (72,000 barrels per day).
The company's Garyville, Louisiana refinery was not affected by Hurricane Rita. In addition, all Marathon refineries, with the exception of Detroit (as reported on Sept. 29) are operating at normal capacity.
Marathon's joint venture Centennial Pipeline remains shutdown due to a lack of commercial power in Beaumont, Texas. Centennial Pipeline is a 26-inch pipeline that stretches from Beaumont to Illinois, transporting product to numerous locations in the Midwest. Marathon is working with its partner to utilize generators to supply power to the pipeline in an effort to bring the system back online at a reduced rate by early next week. Commercial power interruption could continue for up to two to six weeks.
The company's three other pipeline systems that service its refinery system are operating normally. These lines are located in Texas City, Texas, Garyville, Louisiana, and St. James, Louisiana.
Following Hurricanes Katrina and Rita, several of the company's Gulf of Mexico (GOM) offshore pipelines continue to be shut down due to a combination of damaged shore facilities and production being shut-in at several company operated and third-party operated facilities in the GOM. These lines include: the South Pass/West Delta, Vermillion, and East Cameron pipeline systems. A time frame for resumption of normal operation of these lines is unknown at this time. Crews are still in the process of conducting damage assessment and making repairs to shore-based as well as offshore facilities that link these pipelines.
Oil & Gas Production
The Ewing Bank platform (130 miles south of New Orleans; 17,000 gross barrels of oil per day (bpd) and 17.5 mmcfd) received only minor damage as a result of Hurricane Rita, and resumed operating on Sept. 29.
Three South Pass platforms (1,500 gross bpd and 7.5 mmcfd) continue to be shut-in as a result of Hurricane Katrina and damage repairs continue.
The restart of operated and non-operated oil and gas production will be dependent upon not only the completion of necessary repairs to the offshore platforms, but also on the availability of shore-based facilities and pipelines which were more seriously affected by the storms.
Prior to the hurricanes, Marathon's total net production in the GOM was approximately 60,000 boe per day. As of today, approximately 36,000 boe per day remains shut-in.
Employees and Communities
The company has accounted for all its employees and is pleased to report that they are all safe. Marathon is providing assistance, including food, water, generators and other household items, as well as temporary housing for those whose homes were seriously damaged or destroyed. The company is also providing employees in Texas and Louisiana with interest-free loans of up to $10,000 to assist in their recovery efforts.
In addition, Marathon has committed $5 million dollars to charitable organizations involved in hurricane relief efforts. The company also continues to match dollar-for-dollar to the American Red Cross employee, retiree, and Marathon dealer, jobber and wholesale customer donations to organizations engaged in hurricane relief efforts. As of today, contributions from these groups total nearly $1.5 million. Including Marathon's matching gift, total hurricane relief to date is nearly $8 million. As a result of Hurricane Rita, the Company's deadline for the matching gift program has been extended to Oct. 14, 2005.
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