Argentina: Authorities Demand Petrobras Install Safety Plan After Accidents At Bahia Refinery

Provincial authorities in Argentina gave Brazil's Petrobras 72 hours to come up with a safety plan for its Bahia Blanca oil refinery following two incidents at the plant this month. If a plan is not presented within that time frame, they want the facility shut down.

The 31,000 barrel-per-day (bpd) refinery was shut for several days after an Aug. 10 blast in the plant's rest area killed one worker and injured another.

Then at the start of this week a fire broke out at the refinery. It was quickly put out and no one was hurt, but the two incidents have raised concern among safety officials in Buenos Aires province, where the facility is located.

"Due to the repeated incidents in the Petrobras refinery in the city of Bahia Blanca, the company will be called upon to halt its operations if it does not present a plan guaranteeing security conditions within 72 hours," said a statement from the province's (OPDS) development office.

The Bahia Blanca plant accounts for about 5 percent of Argentina's total refining capacity of 627,000 bpd.

Energy reserves have fallen in recent years in Argentina, Latin America's No. 3 economy, which has had to boost fuel imports. Critics blame government intervention in the market and political uncertainty for discouraging investment.

PETROLWORLD Source: Reuters