Apache Pipeline in Australia Breaks
Apache Corp. reported a pipeline rupture and fire at its Varanus Island gas processing and transportation hub offshore Western Australia.
No one was hurt and 153 people evacuated following the onshore incident involving a pipeline transporting oil and gas from offshore production facilities to processing facilities. Thirteen people stayed on the island to monitor the situation.
Jefferies & Co. analyst David Adams said any down time is unlikely to have much impact on production. Although Varanus produces all of Apache’s Australian natural gas and over half the oil, it is only about 7 percent of Apache’s total volume.
Adams estimates a month of down time would shave about 1 percent off total 2008 production volume.
Apache shares fell $3.59, or 2.6 percent, to $132.41 in afternoon trading.
