THE MANAGEMENT of Petrojam has put the preliminary estimates of Monday night's fire which damaged three storage tanks at the state-owned oil refinery at US$1 million (J$45 million).
Winston Watson, managing director at the oil refinery, said the estimate was originally based on the assumption that all the 87 octane fuel in the tank where the fire started would be lost. The tank has a 25,000-barrel capacity. An assessment of the damage to that tank was currently being carried out with early indications that it could cost between US$300,000 to US$500,000 for repairs.
"Right now we are not sure but I think the US$1 million is still not a bad figure. We will hold that estimate until we come up with something more accurate," Mr Watson said.
He told The Gleaner that British-based insurers were scheduled to arrive in the island today to begin their own investigations before meeting with Petrojam's management tomorrow morning. The tank repair company, PDM, out of the United States, has already been put on standby, he said.
Up to mid-afternoon yesterday, engineers at the oil refinery were still trying to determine how much fuel was lost or damaged and exactly what caused the fire as an internal inquiry into the incident got under way.
Mining and Energy Minister Robert Pickersgill said an external investigator would be coming to join the Petrojam team.
Initial reports are that the fire started about 8:30 p.m. while a Trinidadian ship was off-loading about 25,000 barrels of fuel. One theory being advanced is that it could be the result of static electricity, but Mr. Watson said it was too early to determine.
Motorists in the meantime are being urged to refrain from panic buying as there is no shortage of petrol on the market. Mr. Watson said the damaged tank contained less than 10 per cent of the refinery's gasolene storage capacity and all other storage remain unaffected.
And according to Mr. Pickersgill, except for the time it will take to repair the tanks, money from the insurers and Petrojam's internal revenue should be enough to cover the costs.
"I don't think it is pretty much of a setback," he said.
