03 January 2012

 Full production at Bukom by year-end

Shell expects its oil refinery at Pulau Bukom to be in full production by the end of this year, Channel NewsAsia yesterday reported. Production was halted in late September after a raging fire that lasted over 30 hours. The blaze had caused the oil major to shut down some plants, including three crude distillation units that form the backbone of its 500,000 barrels per day refinery. Shell's spokesperson told Channel NewsAsia that most of the production units at the Bukom refinery have been restarted. It has also resumed normal supply to most customers. A small number of contracts continue to be affected by force majeure. Force majeure is a clause in contracts which frees both parties from liability or obligation when an extraordinary circumstance beyond the control of the parties occurs. The Bukom plant is the world's largest Shell refinery in terms of crude distillation capacity. Shell said earlier that it expects to book a loss of about US$150 million for the fourth quarter as a result of the fire.