(Alliance News) - Royal Dutch Shell PLC on Monday said its majority-owned West Delta-143 facility in the Gulf of Mexico suffered "significant structural damage" due to Hurricane Ida, with parts of it offline until the end of the year.
Hurricane Ida formed on August 26 and battered parts of America. Shell said roughly 60% of its producing assets in the Gulf of Mexico region are back online.
The oil major, which through its Shell Offshore Inc arm has just shy of a 72% stake in WD-143, conducted a damage assessment at the asset. BP PLC, through its BP Exploration & Production Inc unit, owns just under 29% of WD-143.
Earlier in September, Shell identified damage to the WD-143 facilities during an initial flyover of its assets which were on Hurricane Ida's path.
Shell explained WD-143's 'A' facilities will be offline for repairs until the end of 2021, while the 'C' platform will be operations in the fourth quarter.
WD-143 is a transfer station for production from Shell's assets in the Mars corridor in the Mississippi Canyon area of the Gulf of Mexico to onshore crude terminals.
"Given the timeline for repairs to WD-143, we expect to resume production from our Olympus platform, which flows across the WD-143 'C' platform, in Q4 2021, and from our Mars and Ursa facilities, which flow across the WD-143 'A' platform, in Q1 2022. Our Perdido asset in the southwestern Gulf of Mexico was never disrupted by Hurricane Ida, and our floating production, storage and offloading vessel, the Turritella (also known as Stones), is online. At this stage of the recovery, approximately 60% of Shell-operated production in the Gulf of Mexico is back online."
Shell's A stock was 1.1% lower at 1,440.60 pence each in London on Monday afternoon. Its B stock was 0.8% lower at 1,434.60p.
By Eric Cunha; ericcunha@alliancenews.com
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