Key Shell US Gulf platform off line until 1Q

Part of a key Shell offshore gathering hub in the US Gulf of while another should be on line by year-end after sustaining "significant structural damage" from Hurricane Ida.

The West Delta-143 A platform, which handles crude and natural gas production from the Mars and Ursa platforms, will not be back in service until some time in early 2022. West Delta-143 C, which handles Olympus platform output, is expected to be up and running again in the fourth quarter.

The facilities have been out of action since Hurricane Ida struck at the end of August. Offshore oil output from the Gulf of Mexico that was halted in advance of the storm, has been slow to recover, with an estimated 422,000 b/d still suspended as of 17 September.

Shell, which is a key producer in the Gulf of Mexico, had earlier declared a force majeure on numerous crude delivery contracts because of damage to the facility, which moved 233,000 b/d of Mars crude from the three offshore platforms in the first seven months of the year. The shutdown has already contributed to volatility in the market for Mars.

Separately, Shell said about 60pc of the company's production in the Gulf of Mexico is now back on line.

By Stephen Cunningham