Exxon prepares to replace ruptured pipeline

13 Jul 2011 14:52

Source: reuters // Reuters

* Preliminary works starts on pipe that leaked into river

* Company says to meet federal corrective requirements

* Four animals treated for oil exposure so far

* Clean-up effort expanding (Adds details of clean-up, byline)

By Anna Driver

HOUSTON, July 13 (Reuters) - Exxon Mobil said it had begun preliminary work to replace the pipeline that ruptured and spilled an estimated 1,000 barrels of oil into the Yellowstone River in Montana two weeks ago.

Exxon, the world's largest publicly traded oil company, said it was aiming to meet federal requirements on corrective action around the Silvertip pipeline before resuming operations.

Preliminary work includes talks on permitting requirements, rights of ways, drilling equipment, contracting and pipeline fabrication and transportation, the Irving, Texas, company said on Wednesday.

Federal officials say shoreline contamination from the July 1 rupture that spilled crude into one of America's most pristine rivers, has been observed over an area stretching at least 240 miles (386 km) downstream from the site of the burst pipeline.

Montana Governor Brian Schweitzer has criticized Exxon and accused the company of underestimating the amount of oil released into the river. Exxon's initial estimate of the spilled amount remains unchanged.

High water in the Yellowstone has hindered government and Exxon efforts to determine the cause of the failure of the 12-inch pipeline, which is buried in the riverbed.

The scope of the oil company's clean-up effort is expanding. Nearly 700 people have been dispatched to help, up from 600 earlier this week. Workers are using boom to contain the oil and absorbent pads to mop up crude along the river's banks.

So far, 942 barrels of oily liquids have been recovered, according to data from the U.S. Environmental Protection Agency.

Exxon, which has so far declined to put a price tag on its spill clean-up, is responding to more than 120 claims from residents who have reported damage to property, crops or their health, it said.

The spill has also forced Exxon to cut back production at its 60,000 barrel-per-day Billings, Montana, refinery.

The company expects to meet its motor fuels contract commitments and is exploring options for alternative supplies of crude, spokeswoman Rachael Moore said in a statement.

Exxon said that so far it has treated four animals for exposure to oil: a garter snake and a western toad, which have been released, and a Woodhouse's toad and a warbler.

Several oiled birds have been observed, and the company was deciding whether they required capture and cleaning. (Additional reporting by Kristen Hays in Houston and Matt Daily in New York; editing by John Wallace and Maureen Bavdek)

Fire hits Sisak refinery in central Croatia

20 Jun 2011 09:59

Source: reuters // Reuters

ZAGREB, June 20 (Reuters) - A fire broke out at an oil refinery in the central town of Croatian town of Sisak on Monday, state television reported.

"Firefighters are trying to extinguish the fire. The smoke has gone some 200 metres into the air," the report said. The 60,000 barrel-a-day refinery is owned by the INA oil and gas group.

The company's biggest shareholder is Hungary's MOL which owns 47.46 percent. The Croatian government owns 44.84 percent.

INA is one of the biggest Croatian companies with upstream and downstream segments. It is active in gas and oil exploration at home, in Africa and the Middle East.

It has two refineries, one in the central town of Sisak and another in the northern Adriatic city of Rijeka.

A similar fire hit the Sisak refinery in early 2010.

Both refineries are undergoing modernisation work to be able to produce products for European Union markets. Croatia is on the verge of completing EU entry talks could join the block in mid-2013. (Reporting by Igor Ilic; Editing by Jon Boyle)