BP PLC Unaffected By Azerbaijan SOCAR Oil Accident

BP PLC Unaffected By Azerbaijan SOCAR Oil Accident

30 workers are reported to be missing due to the fire accident at an Azerbaijan oil rig belonging to SOCAR

A tragic fire was reported on a Caspian Sea Azberi oil rig in , where 30 worker are missing and are being searched for, two people were dead due to the accident, it was an energy company by the name, SOCAR. Luckily BP Plc.’s stock and its operations were unaffected by this tragedy, the oil company has some of operations in Azeri waters as well in Caspian Sea, but thankfully it was unharmed.

The energy company’s facility was reported to catch fire on Friday evening due to an unnoticed damaged natural gas pipeline, which was broken by a storm earlier that consisted of waves, 30 feet high pushing the oil rig. The leakage caused by the pipeline caused the fire but it has not yet been revealed how much the damage and leakage actually was. When the fire took place, unfortunately some of the workers were unable to escape due to the heavy storm blocking them from using the life boats the facility contained in cases of emergencies as such.

The state Oil Company has to face loss of life and many other damages due to the fire, even though there were lifeboats available at the facility, some of the company’s workers were unable to leave the area.  One of the lifeboats broke while the workers were on it dropping them in the Caspian Sea. The fire got bigger spreading to the facility gas and oil wells, 28 of the well were closed down according to the authorities. Before this tragedy surrounded the facility, it produced almost 6000 barrels every day, being the main production platform of Socar fields. It’s a disaster for the oil company, causing more damage locally rather than on an international level.

BP Plc. on the other hand informed that none of its facilities, situated near the area were damaged or affected in any way by the incident.  The oil and gas company’s operation in Caspian Sea is working on the development of Gunsheli oil field.  The company is also an investor in the Caspian state; the state produced 850,000 barrels per day last year. These two oil and gas companies are not the only one situated in the state and the area. It is home to many of the companies that belong to the oil industry business such as Royal Dutch Shell Plc., Exxon Mobil Corp. and many others.  The stock of the oil giant was reported to stay the same after the incident took place, one of the spokeswomen for the company informed that this was because the fire was far away from the oil company’s facility and platforms.

BP stock closed at $31.27, going red by -4.29% on December 7.

 

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