By Stephen Bell
PERTH--Chevron Corp. (CVX) has begun evacuating workers from
some of its oil and natural gas operations in Western Australia
state as Tropical Cyclone Rusty threatens to unleash high winds and
flooding in the Pilbara region over coming days.
Chevron is moving non-essential workers on Barrow and Thevenard
Islands as a precautionary measure, and tying down equipment ahead
of the cyclone's arrival, the U.S. company said in a statement
Tuesday.
Chevron operates oil facilities on the two islands, while Barrow
Island is also the site of its 52 billion Australian dollar
(US$53.4 billion) Gorgon gas-export project, which is under
construction and around 55% complete.
Workers have also been evacuated from the Atwood Osprey drilling
rig, and Chevron said it is continuing to monitor the situation
closely.
Woodside Petroleum Ltd. (WPL.AU), operator of the North West
Shelf and Pluto gas-export facilities at Karratha, separately said
it is taking precautions to "safeguard our people and assets"
without being more specific.
Australia's three biggest iron ore ports are readying for the
tidal surges, destructive winds and heavy rainfall predicted as
Rusty heads towards land in the next day or so. Port Hedland, Cape
Lambert and Dampier ports were closed Monday due to rough seas
ahead of the storm.
Fortescue Metals Group Ltd. (FMG.AU) said its port and rail
operations at Port Hedland have been locked down in accordance with
cyclone readiness procedures.
"All work has been suspended on site," the Perth-based company
said in an email.
Atlas Iron Ltd. (AGO.AU) said it has stopped work at its
flagship Pardoo mining operations located about 75 kilometers east
of Port Hedland.
"It is very much bearing down on us," managing director Ken
Brinsden said of the cyclone on a conference call with investors.
"It is looking almost like a direct hit on the Pardoo site."
He said Atlas didn't expect the temporary shutdown to affect the
company's full-year guidance. Atlas Iron is targeting shipments of
between 7.4-7.7 million metric tons of iron ore this fiscal
year.
"There will be an impact, clearly, but we would expect to get
back in pretty quickly," Mr. Brinsden said.
Rusty is expected to move close to the Pilbara coastline
Wednesday and may intensify into a Category 4 system, Australia's
second-most severe cyclone ranking that assumes very destructive
winds and structural damage.
Australia's Bureau of Meteorology has also warned of flooding in
some areas, along with a dangerous storm tide as the eye of the
cyclone nears land.
-Write to Stephen Bell at djnews@dowjones.com
-Rhiannon Hoyle in Sydney contributed to this article.
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