BP closing Prudhoe Bay pending pipeline corrosion determination

Aug. 7, 2006
Prudhoe Bay oil field shutdown is under way says BP Exploration Alaska Inc. Discovery of "unexpectedly severe corrosion" is cited as the cause.

Offshore staff

ANCHORAGE, Alaska -- Prudhoe Bay oil field shutdown is under way says BP Exploration Alaska Inc. Discovery of "unexpectedly severe corrosion" is cited as the cause.

The shutdown will take several days to complete but will result in a reduction in production of 400,000 b/d oil, BP estimates.

Recently completed interpretation of data from a late Julys mart pig run found 16 anomalies in 12 locations along an oil transit line on the eastern side of the field. Follow-up inspections found the corrosion-related wall thinnnig appeared to exceed BP's limits. During the inspections, a 4-5 barrel leak was found. Containment and clean-up are in progress.

"We regret that it is necessary to take this action and we apologize to the nation and the state of Alaska for the adverse impacts it will cause," said BP America Chairman and President Bob Malone.

"However, the discovery of this leak and the unexpected results of this most recent smart pig run have called into question the condition of the oil transit lines at Prudhoe Bay. We will not resume operation of the field until we and government regulators are satisfied that they can be operated safely and pose no threat to the environment."

BP is identifying and mobilizing resources from across Alaska and North America to speed inspection of remaining Prudhoe Bay oil transit lines. BP operates 22 mi of oil transit pipeline at Prudhoe Bay. Smart pigging inspection has been completed covering about 40% of that length.

BP previously announced plans to replace a 3-mile segment of pipeline following inspections conducted after a large spill discovered on March 2, 2006.

8/07/06