Shell Refinery in Argentina Could Reopen - Official
Date: 10-Sep-07
Country: ARGENTINA
The government ordered the closure of Shell's Dock Sud
refinery, which refines 100,000 barrels per day and is a key
provider of diesel fuel in Argentina, on Wednesday, saying it
was an environmental hazard.
The Environment Secretariat said in a statement that
government officials on Monday "will meet with Shell
representatives who are expected to present a clean-up plan of
all the contaminated areas."
A government official told Reuters that it was likely the
refinery, located in the outskirts of Buenos Aires, could start
operating as early as Tuesday.
The government says it detected leaks, contamination in
soil samples and other violations at the facility.
The closure deepened a long-running dispute between Shell
and the government of President Nestor Kirchner, which has
clashed with the oil major over energy prices and supplies.
Gasoline and diesel prices have been virtually frozen in
Argentina for more than four years due to a tacit agreement
between oil companies and the government reached during
Argentina's 2001-2002 economic crisis.
In recent months, some companies have attempted to raise
prices, only to reverse the decision after being publicly
criticized by the government.
Kirchner has sought to keep a lid on inflation, a top
government priority, as Argentina's economy has rebounded,
growing a sizzling 8 percent or more in the last four years.
In 2005, the Argentine leader exhorted Argentines to
boycott Shell's products after it raised prices.
