Shell Reports No Impact on Operations Following Oil Leak at Bukom, Singapore

Shell announced on Monday that its operations at Shell Energy and Chemicals Park Singapore on Bukom Island remained unaffected following an oil leak from a land-based pipeline over the weekend, according to the several media reports. The leak, which has since been contained, involved approximately 30-40 metric tonnes of slop, a mixture of oil and water, which leaked into the sea. The company is working closely with relevant authorities to manage the clean-up efforts.

In a statement, Shell reassured that there has been no impact on Bukom’s operations or supply. "The leak has been stopped, and we are taking steps to clean up the spilled oil," as reported by a News agency. Despite the environmental spill, Bukom's activities, which include refining and petrochemical production, continue as normal.

This incident follows a scheduled maintenance shutdown at Bukom that began in August when Shell temporarily closed one of its crude distillation units (CDU) and other facilities at the refinery for an overhaul. This maintenance work is expected to be completed in the first half of October, as part of the company’s ongoing efforts to ensure the refinery’s optimal performance and safety standards.

In a separate development earlier this year, Shell agreed to sell its Singapore refinery and petrochemical plants to a joint venture formed by Indonesian petrochemical producer Chandra Asri and major trading firm Glencore. The sale, which was announced in May, is expected to be finalized by the end of 2024. This transaction represents a strategic shift for Shell as it continues to focus on decarbonizing its global operations and transitioning toward cleaner energy solutions.

The oil leak at Bukom follows another oil spill incident earlier this year when an oil spill from a nearby shipping terminal reached the beaches of Singapore's Sentosa Island, a popular tourist destination. That spill led to temporary beach closures as clean-up efforts were conducted to manage the environmental impact. In both cases, Shell and local authorities have responded swiftly to address the situation and minimize the potential harm to the environment.

Shell remains committed to managing the current oil spill responsibly and effectively, emphasizing its dedication to safe operations and environmental protection. The company is working closely with government agencies to ensure that the clean-up process is handled swiftly and efficiently. Shell has a long history of operating its Bukom refinery, one of its largest integrated petrochemical complexes worldwide, and continues to prioritize operational integrity and environmental safety in its activities.

In summary, although the oil leak raised environmental concerns, Shell’s operations at Bukom remain fully operational, and clean-up efforts are actively underway. The company is focused on mitigating the impact of the spill while continuing its routine refinery activities and long-term strategic initiatives.