Petrol supplies out of Viva Energy’s Geelong Refinery will be slashed up to 60 per cent over the short term, as it recovers from a huge fire on April 15.
The Victorian refinery supplies 50 per cent of the state’s fuel and 10 per cent of the nation’s.
On Monday, Viva said it has sufficient fuel stocks to cover reduced production and expects to maintain normal fuel supply to customers following this incident.
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“In the short term, Geelong Refinery expects to be producing diesel and jet fuel at approximately 80 per cent of capacity and petrol at approximately 60 per cent,” the company said.
It declined to detail the cause of the blaze earlier attributed to a gas leak that caused an explosion at its Alkylation Unit, which forms part of the Gasoline complex.
Viva added that its Residue Catalytic Cracking Unit (RCCU) is currently offline while operations are stabilised.
“Over the next few weeks, and subject to plant inspection, the company expects to be in a position to restart the RCCU and lift production of diesel, jet fuel and petrol to over 90 per cent of capacity. The refinery is then expected to continue production at these levels until repairs are completed,” it said.
Prior to the fire, shares last closed at $2.53 and will return to trade on Monday.
Viva has notified insurers about the incident and will detail more on it after an investigation is complete.
Benchmark Brent Crude oil prices jumped about 7 per cent on Monday morning to $US96.51 a barrel to extend a rollercoaster ride linked to worries the Strait of Hormuz in the Middle East will remain closed to shipping.
