Husky assesses harm after oil spill curbs Canadian offshore manufacturing

WINNIPEG, Manitoba (Reuters) – Underwater surveys started on Monday after an oil spill off Canada’s Atlantic coast as Husky Power Inc and authorities businesses assessed a leak that quickly shut down all crude manufacturing within the waters of Newfoundland & Labrador.

FILE PHOTO: Banners for the Canadian firm Husky Power are seen at a sporting occasion in Lake Louise, Alberta December 1, 2009. REUTERS/Andy Clark/File Photograph

A leaking flowline from Husky’s White Rose Subject to the SeaRose storage vessel was detected on Friday, when Husky was restarting manufacturing after suspending operations a day earlier resulting from stormy climate.

The spill concerned 250 cubic meters (1,572 barrels) of oil, Husky spokeswoman Colleen McConnell stated on Monday. She stated the corporate is monitoring the realm for oil sheens and any impression on wildlife.

The leak pressured Husky’s White Rose to close down, together with all different producing oil tasks within the space till the regulator, Canada-Newfoundland & Labrador Offshore Petroleum Board, determines it’s protected to renew, the board stated in an announcement on Sunday.

Together with White Rose, there are three different producing tasks off the shore of Newfoundland – Exxon Mobil Corp’s Hebron and Hibernia fields, and the Suncor Power Inc-operated Terra Nova.

Exxon Mobil stated on Monday it had “safely resumed manufacturing” at Hebron, whereas its bigger Hibernia area has not but restarted. It stated it shut in manufacturing on the two fields previous to the Husky incident.

The mixed output of Canada’s Atlantic tasks is 280,000 barrels per day, a quantity that’s unlikely to have an effect on oil markets considerably, with international storage ranges excessive and a possible fast return to manufacturing, stated Mark Oberstoetter, director of upstream Canada for consultancy Wooden Mackenzie.

Environmental teams stated that whereas authorities and trade officers have stated they’ll shield oceans from the dangers of an offshore spill, the fact is extra difficult.

“That is the inevitable nightmare state of affairs the place excessive climate is making it not possible to find out how a lot oil has been spilled, a lot much less attempt to clear it up,” stated Keith Stewart, senior vitality strategist with Greenpeace Canada.

There have been no accidents to grease employees through the storm, one of many worst in many years, the Newfoundland & Labrador regulator stated on Sunday. A spokeswoman for the regulator didn’t reply to requests for touch upon Monday.

Shares of Husky Power closed down 3.21 p.c at C$16.87 in Toronto on Monday.

Extra reporting by Julie Gordon in Vancouver; Modifying by Lisa Shumaker and Dan Grebler

Author: Maxwell C.

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