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UPDATE 1-Fresh Forties pipeline shutdown disrupts Buzzard ramp-up

Fri, 09th Aug 2013 11:09

LONDON, Aug 9 (Reuters) - A fresh shut down in the Fortiespipeline system overnight has interrupted the ramp-up ofBritain's largest oilfield Buzzard and is expected to lead tofurther loading delays, a trade source said on Friday.

A spokesman at BP, operator of the Forties PipelineSystem (FPS), confirmed it was shut down for a few hoursovernight, following an "instrument trip" in the early hours.

The shut down prompted a request that Buzzard, the biggestcontributor to the Forties stream, suspend production, the tradesource said.

Brent futures rose above $1 to an intraday high of $107.70 abarrel following the news, while the spread between theSeptember and October contracts widened out to $1.41 a barrel.

Traders expressed concerns there would be further delays toAugust's Forties cargoes. Nine cargoes have already had theirloading dates pushed back, and one has been deferred intoSeptember. One trader wonderedif a cargo might be dropped altogether.

The pipeline had reopened on schedule on Tuesday afterplanned maintenance at the beginning of August, BP said.

Buzzard had been in the process of ramping up following themaintenance, but the request to shut down has set it back again.

"Buzzard has been given the all clear now that the FPS isokay," said the source. "They're just in the process of gettingeverything ready again."

Buzzard had been producing at close to 100,000 barrels perday (bpd), he said, still only about half its maximum capacityof 200,000 bpd, when it was asked to shut down. It is now backdown at zero.

Nexen, Buzzard's operator, could not be reached for comment.

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