BP leak shuts biggest US oilfield

LONDON – British energy major BP was shutting down the biggest oilfield in the United States on Monday to tackle a pipeline leak, driving up oil prices on prospects that US output might fall by eight per cent.

BP said late on Sunday it had begun shutting down the Prudhoe Bay oil field in Alaska after discovering severe corrosion on a pipeline and a small spill. But the incident had revealed unexpectedly severe corrosion and raised concerns about other pipes in the network, the company said.When complete, the shutdown will cut Alaska North Slope production by 400 000 barrels per day, BP said in a statement in the US.Prudhoe Bay accounts for about half of Alaska’s total production and about eight percent of total US production, according to the US department of energy.News of the output reduction drove oil prices up by more than two per cent.Nampa-AFPBut the incident had revealed unexpectedly severe corrosion and raised concerns about other pipes in the network, the company said.When complete, the shutdown will cut Alaska North Slope production by 400 000 barrels per day, BP said in a statement in the US.Prudhoe Bay accounts for about half of Alaska’s total production and about eight percent of total US production, according to the US department of energy.News of the output reduction drove oil prices up by more than two per cent.Nampa-AFP