Alaska Environmental Officials Investigating Oil Line Leak

JUNEAU, Alaska, March 2 (Reuters) - Investigators are reviewing the cause of 

an oil production pipeline breach on Alaska's North Slope where upwards of 

4,000 gallons (15,100 liters) of fluid spilled, state officials said on Monday.

The production facility is jointly owned by Hilcorp and BP Alaska, but it is 

operated by Hilcorp, which took over operations from BP in November when 

that company sold off some of its Alaska assets.

The ruptured line sprayed the fluid - made up of oil, natural gas and water - on 

Saturday over an area covering about 38,000 square feet (3,500 square 

meters), according to a Department of Environmental Conservation report on 

Monday.

Spray covered a gravel pad and some tundra area, but there were no reports of 

any wildlife being affected, the report said.

DEC specialist Brad Dunker said his office did not receive any further updates 

on what caused the 6-year-old line to burst as office staff arrived at the site on 

Monday.

Blizzard-like conditions delayed initial cleanup efforts, according to a DEC news 

release.

Lori Nelson, the external affairs manager for Hilcorp, said the company was 

able to first plug the hole then build a bypass to re-establish flow within the line.

Quest for More Fuel-efficient LNG Ships May Trump Oil Price Slump

The end of last year saw a flurry of activity in the liquefied natural gas (LNG) 

shipbuilding industry as several builders finalized orders in December. Daewoo 

Shipbuilding & Marine Engineering (DSME), South Korea's third-largest 

shipbuilder, bookedorders for nine LNG carriers from two customers on 

December 30, four LNG carriers from returning customer Angelicoussis 

Shipping 

Group and an order for five LNG carriers from an Asian customer, whose 

identity 

was not disclosed.

ust two weeks earlier, DSME announced that it had signed a contract to provide 

six LNG carriers worth 1.3658 trillion won ($1.2429 billion) to a European ship

 owner, Hellenic Shipping News reported. Industry experts claim that British oil 

major BP placed the order.

DSME Wins Order from Europe for 6 LNG 

Carriers Worth 1.3658 Trillion Won

Daewoo Shipbuilding and Marine Engineering (DSME) maintains its good 

performance in the liquefied natural gas (LNG) carrier market. It is continuously 

making successes in getting orders in LNG carrier market, which has become a 

niche market, while orders of offshore plant are slowing down due to global low 

oil prices.

The DSME announced that it signed a contract to provide 6 LNG carriers worth 

.3658 trillion won (US$1.2429 billion) to a European shipowner. The amount 

accounts for 8.9 percent of the DSME sales of last year. According to the 

shipbuilding industry, this contract is with major global oil company BP, who 

placed the order.

The performance of the DSME has reached more than 400 percent of the 

original goal in the business of gas carriers by obtaining orders worth US$7.7 

billion from 28 LNG carriers and 12 LPG carriers. The trend is likely to continue 

next year, because the orders of Russia’s Yamal project are waiting.

Experts are also presenting positive analyses. Researcher from Daishin 

Securities Jeon Jae-cheon said in a report, “The market share of DSME 

increased to 69 percent this year,” adding, “DSME is providing excellent engine 

systems based on patents.”

However, recent low oil prices will become a burden for the DSME, because 

here is a high possibility of a drop-off in growth if offshore plant orders are not 

continuously placed.

Source: Business Korea