UPDATE 1-Chile ENAP: Bio Bio refinery restart date unclear

* ENAP to need new imports of refined oil products

* Government had seen Bio Bio back online in June

* Financial impact still under evaluation
(Updates with ENAP statement)

SANTIAGO, April 23 (BestGrowthStock) – Chile state oil company ENAP
said on Friday it was unclear how long the country’s
116,000-barrel-per-day Bio Bio oil refinery would remain out of
action after a massive February earthquake.

ENAP said in a statement to Chile’s market regulator the
extent of damage to the installation was still unclear, and the
company would need new imports of refined oil products, as
opposed to crude.

Mining Minister Laurence Golborne had said this month the
refinery would begin resuming production in June and reach full
capacity in the third quarter, months later than earlier
estimates.

“The financial impact due to this situation is still under
evaluation, given we do not know the full extent of the damage
or the associated periods of paralysis,” ENAP said in the
statement.

ENAP said the disruption to Bio Bio would translate into
lower sales and margins, given higher levels of imports or
refined products “and a greater need for working capital as a
result of the need for new imports of refined products as
opposed to imports of crude”.

However, ENAP said insurance would cover damage to
installations, as well as losses while Bio Bio is out of
action.

Chile’s other 104,000 bpd Aconcagua oil refinery, which was
farther from the epicenter of the giant Feb. 27 earthquake,
resumed production in mid-March and is now operating normally.
Stock Report

(Reporting by Alvaro Tapia. Writing by Simon Gardner; Editing
by Walter Bagley)

UPDATE 1-Chile ENAP: Bio Bio refinery restart date unclear