Shell declares force majeure on Gulf of Mexico deliveries

Royal Dutch Shell Plc cancelled some customer shipments on Thursday 9th September due to damage to offshore facilities from Hurricane Ida, declaring force majeure. Shell is the largest oil producer in the Gulf of Mexico,

Some 75% of US Gulf of Mexico’s offshore oil output remained halted at the end of last week (September 9th) after Ida struck in late August. Shell and other oil companies have warned that they were unable to say when full production would resume.

Hurricane Ida has had the biggest impact on Gulf of Mexico natrual resource production since the hurricane sequence of 2005.

BP, which has a minority stake in the Mars field and is the second-largest oil producer in the GoM, has said that it was resuming operations at some of its own platforms. But it had no immediate comment on the status of Mars shipments on Thursday.

At least two large cargoes of Mars crude that were scheduled to be sent to China were cancelled, Reuters reported, citing unnamed people familiar with the matter.

As of last Thursday there were at least three very large crude carriers en route to the Louisiana Offshore Oil Port for September loadings.

Shell has started to send offshore workers to its Appomattox production platform while damage assessments are continuing at its West Delta-143 (WD-143) offshore facilities. West Delta transfers crude to onshore facilities for processing and export.