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UPDATE 1-U.S. offshore energy producers brace for Hurricane Zeta impact

Tue, 27th Oct 2020 12:46

(Updates with storm location, intensity, oil prices)

By Erwin Seba

HOUSTON, Oct 27 (Reuters) - Energy firms and ports along the
U.S. Gulf Coast were bracing on Tuesday for another test as
Hurricane Zeta, the 11th hurricane of the season, entered the
Gulf of Mexico.

BP, Chevron and Equinor evacuated
oil workers and Royal Dutch Shell paused drilling as
winds intensified on Monday. Pipeline operator Enbridge
evacuated two offshore platforms and on Tuesday plans to remove
workers from a Louisiana natural gas processing plant.

Some oil producers were pulling workers for at least the
sixth time since June, a process made more difficult by the
novel coronavirus pandemic with workers required to be tested
for the virus before returning to work.

Zeta was the third named storm this month to hit Mexico's
Quintana Roo state, forecasters said, setting a new record for
the month. Winds decreased to 70 miles per hour (110 kph) after
sweeping across the Yucatan Peninsula but are forecast to rise
to 85 mph as its churns over the Gulf of Mexico, the NHC said.

On Monday, it became the 11th hurricane of the Atlantic
season, which on average has six.

A hurricane watch was issued for parts of Louisiana to the
Mississippi-Alabama border by the U.S. National Hurricane Center
(NHC). Zeta could hit the U.S. coast on Wednesday at or near
hurricane strength, the NHC said.

Energy ports from Baton Rouge to Pascagoula were operating
under advisories warning of the potential for gale force winds.
A Louisiana deep water oil export port said it was implementing
its inclement weather plan.

Energy producers shut 16%, or 293,656 barrels per day (bpd)
of oil and 6% of natural gas output, or 162.57 million cubic
feet per day, according to data from the U.S. offshore energy
regulator.

U.S. Gulf of Mexico offshore oil production accounts for
about 17% of total U.S. crude oil output and 5% of total U.S.
dry natural gas production.

Crude futures gained 1% in London trading after falling more
than 3% on Monday over fears of rising COVID-19 cases and
increased crude supplies.
(Reporting by Erwin Seba
Writing by Gary McWilliams
Editing by Robert Birsel and David Holmes)

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