EXPLOSION AT KUWAIT SHUAIBA REFINERY: LIMITED

UNCLAS KUWAIT 004349

SIPDIS

SIPDIS

DEPT FOR SES-O; EB; NEA

E.O. 12958: N/A
TAGS: ENRG EPET ECON KU OIL SECTOR
SUBJECT: EXPLOSION AT KUWAIT SHUAIBA REFINERY: LIMITED
IMPACT, NO DEATHS, NO INDICATION OF TERRORISM


1. On 4 November, at approximately 1330 local time (1030
GMT) there was a pipeline explosion and subsequent fire at
unit 8 (a heavy oil processing unit with a capacity of 25,000
bpd) of Shuaiba refinery, Kuwait's smallest refinery which
processes approximately 200,000 bpd. The refinery is located
about 15 miles south of the outskirts of Kuwait City.
(Overall, Kuwait possesses a refinery capacity of 915,000
bpd.) As of 1700 local time, the fire was under control but
not yet extinguished. There was reportedly no danger of
spreading or secondary explosions. Part of the refinery has
been shut down, but other parts remain operational. There
was no damage to the adjacent Abdulla refinery which remains
fully operational.


2. There are no reported deaths. Some reports indicate no
injuries; others indicate one victim with burns of unknown
severity. Early indications point to an operational
accident. There are no/no indications at this point of a
terrorist attack.


3. Fahad Al-Dihani, Manager of Health and Safety at Kuwait
National Petroleum Company (KNPC) which owns and operates the
refinery, told Econoff at that it appeared the fire resulted
from a gas leak, but that a full investigation could not
begin until the fire was extinguished. He said all personnel
(approximately 800 workers) were initially evacuated from the
refinery, but many personnel were subsequently allowed to
return to work in non-affected areas of facility. Both
Mohammed Al-Ajami, a spokesperson for KNPC, and Al-Dihani
insisted that there were no indications that this incident
was the result of anything other than an operational
accident. Additional firefighting units remain on stand-by
but have not been called to the scene. Initial reports
indicate that the response to the emergency was prompt and
effective.


4. These reports are corroborated by private engineers of
U.S. company Fluor, who were near the scene at the time of
the incident, as well as Naval Criminal Investigative Service
(NCIS) personnel who were also coincidentally nearby.


5. Fahad Al-Dihani said though he could not be certain until
the investigation was complete, he expects the accident to
have a very "limited and temporary impact" on operations at
the refinery. According to Hussain Ismael, Shuaiba Refinery
Manager, it is difficult, at present to assess specific
damage. He said that some other units had been shut down as
a precautionary measure per established procedure, but these
units will be restored to operation while an investigation is
conducted to determine the cause of the explosion.


6. Shuaiba refinery produces light, medium, and heavy
products including naptha, gasoline, kerosene, fuel oil, and
diesel.
LeBaron