Dispute threatens UK production

Oil & Gas UK has urged dialogue over a management/union dispute which could halt operations at a refinery in eastern Scotland. Otherwise production from the UK central North Sea could be severely disrupted.

Offshore staff

ABERDEEN, UK --Oil & Gas UK has urged dialogue over a management/union dispute which could halt operations at a refinery in eastern Scotland. Otherwise production from the UK central North Sea could be severely disrupted.

BP's Forties Pipeline System (FPS) transports 700,000 b/d of oil to the Grangemouth refinery in Kinneil from various fields. If the plant is shut down, FPS will also be put out of action. According to Oil & Gas UK chief executive Malcolm Webb, that will have a knock-on effect on UK gas production equivalent to around 30% of current UK demand.

"Moreover," he added, ""if oil and gas production offshore were to be shut down, re-starting cannot happen at the flick of a switch. It would take several days to re-start safely."

04/24/2008

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