Skip to main contentAccess keys help

[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 22 May 2007, 21:43 GMT 22:43 UK
Leak sparks partial BP shutdown
Prudhoe refinery facility
The Prudhoe oilfield produces 400,000 barrels of oil a day
Oil giant BP has shut down a quarter of its operations at its Alaskan oilfield after discovering a leaking pipe.

BP said it shut down some production at the Prudhoe field after finding water leaking from a pipe used in a facility that separates water from crude oil.

However, the news had little effect on oil prices which fell on Tuesday.

In the US, light sweet crude slipped $1.30 to close at $64.97, while in London Brent crude closed 97 cents lower at $69.52.

Analysts said traders had shrugged off the leak as minor, and were instead taking profits on recent share gains.

Production cut

The Prudhoe facility produces around 400,000 barrels of oil a day.

"We expect the facility to be down a few days while repairs are made," said BP spokesman Ronnie Chappell. The group expects production to fall by just 25,000 barrels a day.

News of the leak comes as a US criminal investigation takes place into a incident at the facility last year which led to 200,000 gallons of oil leaking from the site.

At a hearing last week, BP America chief Bob Malone admitted there had been "extreme budget pressures at Prudhoe Bay", which had affected maintenance work.

BP has also launched an independent review of corrosion inspection and monitoring of all its pipelines at Prudhoe and across Alaska.

Last year, it vowed to spend $550m maintaining its pipeline network in Alaska, including the replacement of 16 miles of oil transit pipelines.


SEE ALSO
Top managers blamed for BP blast
03 May 07 |  Business
BP chief executive Browne resigns
01 May 07 |  Business
BP sees oil production stabilise
09 Jan 07 |  Business
BP appoints new Alaska unit head
01 Nov 06 |  Business
Alaska woes knock BP production
04 Oct 06 |  Business
BP rebuked for pipeline failings
07 Sep 06 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

AmericasAfricaEuropeMiddle EastSouth AsiaAsia Pacific