Sinopec Offshore Production, China Oil Giants Industry after Accidents
Sinopec or China oil giant Production was largely unaffected after a China Petroleum & Chemical Corp offshore oil maintenance platform was crippled during a typhoon and a PetroChina refinery aromatics unit was shut by fire this week.
The damage to operating units of the two oil giants comes as China’s oil facilities are under pressure to avoid further mishaps after two oil pipelines exploded in July in the port of Dalian, leaking at least 1,500 tonnes of heavy crude oil into the sea, as well as the much more serious oil spill from a BP well in the Gulf of Mexico.
The platform, part of Sinopec’s subsidiary Shengli Oilfield, was in seven metres of water in the Bohai Bay, five miles off the coast of eastern China’s Shandong province.
Oil valves on the platform had been shut down and the platform remained stable, the transport ministry said, citing reports by Shengli Oilfield. Shengli, Sinopec’s largest oilfield, produced 556,700 barrels of oil per day in 2009.
The accident did not cause any oil leaks, an official with Sinopec’s news department said by telephone.
“It is not a drilling rig, it is for maintenance purposes,” the official said. “Rescuers are trying to find the last two people, and how to fix the platform is something to consider at the next stage.”
RBS analyst David Johnson said there was likely to be little impact on output and on the environment. “If it is an oil rig used for repair purposes, I am not sure you will see a huge drop in the numbers,” he said. “It is not going to be a tragic environmental disaster.”
Xinhua news agency reported that the rig was hit by a typhoon, but the company official said it was not immediately clear what caused it to topple over.
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