Shell expects Bukom refinery to resume full production soon

Channel NewsAsia 28 Dec 11;

SINGAPORE: Shell has said it expects its oil refinery at Pulau Bukom to be in full production by the end of this year, or in three days' time.

Production was halted at the plant in late September following a fire that lasted 32 hours.

In response to queries from Channel NewsAsia, Shell's spokesperson said most of the production units at the Bukom refinery have been progressively restarted.

The company has also resumed normal supply to most customers.

However, it said a small number of contracts continue to be affected by the so-called Force Majeure event.

Invoking the Force Majeure clause of a contract excuses a firm from fulfilling its contractual obligations in circumstances beyond its control.

Shell said it continues to be in discussions with the affected customers to address their supply needs.

The Bukom plant is the world's largest Shell refinery in terms of crude distillation capacity, which is about half a million barrels a day.

- CNA/al

Full production at Bukom by year-end
Business Times 29 Dec 11;

SHELL expects its oil refinery at Pulau Bukom to be in full production by the end of this year, Channel NewsAsia yesterday reported.

Production was halted in late September after a raging fire that lasted over 30 hours.

The blaze had caused the oil major to shut down some plants, including three crude distillation units that form the backbone of its 500,000 barrels per day refinery.

Shell's spokesperson told Channel NewsAsia that most of the production units at the Bukom refinery have been restarted.

It has also resumed normal supply to most customers. A small number of contracts continue to be affected by force majeure.

Force majeure is a clause in contracts which frees both parties from liability or obligation when an extraordinary circumstance beyond the control of the parties occurs.

The Bukom plant is the world's largest Shell refinery in terms of crude distillation capacity.

Shell said earlier that it expects to book a loss of about US$150 million for the fourth quarter as a result of the fire.