Oil and gas operations in Southeast Asia were remarkably unscathed by the tsunamis that hit 11 countries, killing an estimated 150,000 people, following an earthquake Dec. 26.
Major international companies operating in that area reported no major damage or disruptions in even the hardest-hit nations.
Royal Dutch/Shell Group said its employees were safe and operations sustained no major damage or disruption "in the countries most seriously affected" by the tsunami—Indonesia, Sri Lanka, India, Thailand, and Malaysia.
ExxonMobil Corp. reported "a minor disruption" of gas processing in Indonesia by PT Arun and ExxonMobil Oil Indonesia Inc. "for safety" immediately after the tsunami hit that area. However, production was fully restored that same day, with no damage to ExxonMobil facilities.
By Jan. 5, Indonesia's undamaged LNG industry had resumed shipments to Japan and South Korea after making a deal with ExxonMobil to secure natural gas supplies for local fertilizer producers. Despite the human suffering, analysts and government officials said Indonesia was spared the economic impact of serious earthquake-related damage to the LNG facilities in Aceh. (see related story, p.24)
ChevronTexaco Corp. said its oil and gas production facilities and operations in Indonesia and Thailand were unaffected and "remain fully operational." In Houston, ConocoPhillips reported none of its substantial operations in Asia were damaged or disrupted by the disaster. Unocal Thailand said the earthquake and tsunamis had no impact on Unocal's operations in the Gulf of Thailand, "and we have maintained production at normal rates."
On the HindustanTimes.com website, Indian Petroleum Secretary S.C. Tripathi said in a news report, "There has been no damage to any of the oil installations at sea. [The] tsunami will not impact our exploration plans in the Andamans, where two blocks have already been awarded to ONGC [Oil & Natural Gas Corp.]"
The tsunami also will have no major effect on exploration of ONGC blocks in Nicobar, said Avinash Chandra, chief consultant of state-owned Oil Industry Development Board (OIDB) and former director general of the Directorate General of Hydrocarban. Chandra said ONGC will erect an "earthquake-proof" subsea facility and take more precautions than normal.
Australian media reported no damage to industry facilities along Australia's North West Shelf.
Industry donations
Like many nations and individuals around the world, energy companies donated money and supplies to help with the massive rescue and relief efforts in Asia.
ExxonMobil said Dec. 30 it would contribute $5 million to assist relief efforts in Southeast Asia and additionally would match employee and retiree contributions around the world. ExxonMobil affiliates also donated in-kind assistance, including air transportation for medical personnel and much-needed supplies.
Shell is donating $3 million to disaster relief efforts in the region, including $2 million to be donated locally and distributed through its operating companies in Indonesia, Sri Lanka, India, Thailand, and Malaysia. "We expect other local Shell schemes around the world to deliver a further $1 million, such as the donation to relief funds of 5¢ for every litre of petrol and diesel sold in Singapore during the coming week," it said in a Dec. 31 statement.
Shell said it is also ensuring continued supply of essential fuels and products to the affected areas. Shell provided fuel for rescue transport in Thailand and supplied water tanks in Sri Lanka.
ConocoPhillips announced Jan. 3 it would contribute $1 million to assist relief efforts in Southeast Asia and would also match up to $1 million of employee and retiree contributions from around the world. The company's affiliates in the affected countries immediately began gathering cash contributions and donations of clothing, food, and other supplies.
Unocal Thailand donated 1 million baht to the Rajapracha Nukroh Foundation, under the patronage of the Thai king, for tsunami relief. It also provided a helicopter to transfer patients from Ta Kua Pa Hospital to hospitals in Ranong and Songkhla provinces and for other assistance. Unocal provided two freezer containers and 450 body bags.
Marathon Oil Corp. and its subsidiary Marathon Ashland Petroleum LLC reported they will contribute as much as $1 million in support of countries in the Indian Ocean. The contribution will consist of an initial payment of $500,000 ($250,000 from each company), equally distributed to the American Red Cross and UNICEF. In addition, the companies will match contributions made by employees, annuitants, Marathon-branded dealers, jobbers, and wholesale customers to either of the relief organizations by Jan. 31, on a dollar-for-dollar basis up to $500,000.
