ConocoPhillips begins restart of Katrina-hit Alliance refinery

New York (Platts)--5Jan2006

ConocoPhillips has begun the restart of Hurricane Katrina-damaged 247,000
b/d Alliance Refinery in Belle Chasse, Louisiana, and expects partial
operations in late January and a return to full operations around the end of
the first quarter, the company said Thursday.
     ConocoPhillips in December discounted market talk and said it planned to
restart some Alliance units that month and to have the refinery at full rates
by end-January. The refinery was badly damaged by Katrina when it hit the
Louisiana and Mississippi coasts Aug 29. 
     The major said its average refining capacity utilization rate for the
fourth quarter of 2005 was expected to be lower, in the high 80% range,
primarily as a result of the impacts of Katrina and Hurricane Rita on its Gulf
Coast refining capacity.
     ConocoPhillips said its worldwide refining margins for the fourth quarter
were expected to be "significantly lower" than in the third quarter, citing,
among other items, pre-tax turnaround costs of about $90-mil and pre-tax
hurricane-related maintenance spending of $100-mil, excluding insurance and
about $55-mil in environmental and legal accruals. 
     ConocoPhillips said its end-Q4 debt was expected to be about $12.5-bil.

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