Oil giant Chevron has confirmed an oil leak related to an equipment failure at a site located in shallow waters approximately 40 miles east of Venice, Louisiana. The company has shut down its Cypress line and a portion of its Main Pass pipeline network to investigate the leak.
According to a Reuters report, the Cypress line feeds a terminal known as Empire located on the Mississippi River in southern Louisiana – a delivery point for “Heavy Louisiana Sweet” crude. The Empire terminal has the capacity to handle up to 350,000 barrels a day.
The investigation is taking place in an area known as the Main Pass 299 block where Chevron has two offshore platforms. Government records show that the site has produced heavy oil, natural gas and sulfur.
Although the U.S. Coast Guard said last night that it had not been informed of the potential leak, the Federal Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) is aware of the situation and is “looking into it.”
Stay tuned. We will be providing updates as more details become available.
Read the full Reuters report here: http://af.reuters.com/article/energyOilNews/idAFS1E78C1PP20110913
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