Viva Energy announces major update to progress of Geelong oil refinery repairs
One of Australia’s two oil refineries damaged by a major fire last month is expected to be repaired and fully operational by the end of June, its operator said.
The Geelong refinery, owned by Viva Energy, suffered significant damage when it burst into flames on April 15, causing operations to be scaled back and threatening the country’s fuel supplies.
Viva Energy announced Monday that repairs are ongoing and are expected to last six weeks.
Once the damaged equipment is back online, the refinery will return to 90 percent of its production capacity.
In a statement to the ASX, Viva Energy said that while the investigation into the cause of the fire was ongoing, repairs were “progressing well with no obstructions identified”.
“The company continues to maintain sufficient fuel inventories to accommodate this reduced production and expects to maintain normal fuel supplies to our customers throughout this period,” the company said.
“The company continues its investigation into the cause of the incident, as well as damage assessment and repair times.
“The company has contacted its insurers regarding the incident, including property damage and business interruption.”
In its statement to the ASX on April 20, Viva Energy said that the refinery will continue to produce diesel and jet fuel with 80 percent of the capacity and gasoline with 60 percent.
The fire, believed to have been caused by equipment failure, emerged as Australia’s fuel supplies were already under pressure due to the Middle East war and the ongoing closure of the Strait of Hormuz.
Prime Minister Anthony Albanese said on April 17 that the fire would not change the country’s fuel situation.
According to the Department of Prime Minister and Cabinet, as of April 28, Australia had 43 days of petrol, 33 days of diesel and 28 days of jet fuel left.
The Geelong refinery, on the Corio Bay coast, is one of only two operating oil refineries in Australia and produces 10 per cent of the country’s fuel and more than 50 per cent for Victoria.
It can process up to 120,000 barrels of oil per day and employs more than 1,000 workers.
Viva Energy has been contacted for further comment.
