LONDON (Alliance News) - Oil companies operating offshore the Gulf of Mexico, including Royal Dutch Shell PLC and BP PLC, are closely monitoring a low-pressure storm in the area which, according to the US National Hurricane Centre, has a high chance of changing into a tropical storm over the next 48 hours.
"Upper-level winds are forecast to gradually become more favourable while this system moves north-westward during the next day or two across the western Gulf of Mexico, and a tropical depression or tropical storm could form during that time," the Hurricane Centre said Monday.
The Hurricane Centre said the low pressure storm had "changed little" over the past several hours but said "interests in and along the north-western Gulf of Mexico should monitor the progress".
"Regardless of tropical cyclone formation, tropical storm conditions are possible along portions of the middle and upper Texas coast and the western Louisiana coast Monday night and Tuesday," the tracking centre added.
The Hurricane Centre said there is an 80% chance the low pressure storm will turn into a tropical storm over the next 48 hours.
BP operates 10 exploration rigs and 10 producing fields in the Gulf of Mexico and has a further four fields in which it holds a stake but doesn't operate.
Royal Dutch Shell PLC has 10 production platforms, four development projects, 20 subsea production systems, and four recent discoveries in the Gulf, offshore Alabama and Mississippi and offshore Texas and Louisiana, the two states most likely to be affected by any tropical storm that may develop.
On its website, BP said it is "closely monitoring the disturbance in the Gulf to ensure the safety of our workers and operations in the deepwater Gulf of Mexico." The company also said that operations were currently running as normal and said it is prepared to "respond as conditions warrant and as part of BP?s year-round efforts to plan, train and prepare for the Atlantic hurricane season," it said.
Reuters on Monday reported that Shell's US operating arm, Shell Oil Co was removing non-essential workers from offshore platforms as a precautionary measure, adding that production would not be impacted by the decision. The workers who have been removed are those who primarily provide support services to workers who operate off-shore platforms.
http://uk.reuters.com/article/2015/06/15/oil-storm-gulf-idUKL1N0Z101U20150615
BP shares were down 0.7% to 434.40 pence per share on Monday morning whilst Shell 'A' shares were off 0.5% to 1,849.50p and 'B' shares 0.3% to 1,878.72p.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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