BOSSES at Fawley oil refinery have moved to quell health fears after a fire sent thick black smoke over residential areas on both sides of Southampton Water.

Part of the huge complex was shut down yesterday after the blaze caused "substantial damage" to a key component of the manufacturing process.

Anxious residents contacted the Daily Echo when black smoke began billowing from one of the flare stacks, used to burn off surplus products.

One said: "You can smell and taste the oil in the air and it's foul. The smoke is landing on Hamble and must be causing problems there."

Another added: "I arrived for work at Hardley Industrial Estate soon after 7am and the flames were already burning. Within half-an-hour they were so fierce and the smoke so thick I expected the alarms to sound ahead of a possible evacuation. The signs are that this was a major incident."

A refinery spokesman denied that the plant was evacuated but confirmed that some staff were sent home as a result of the decision to close part of the complex.

He also denied that the incident posed any threat to public health.

The fire started in one of the units that manufactures steam, which drives the turbines at the refinery and is also used in various heating and cooling processes.

"We apologise to our neighbours for any concerns caused by the increased level of flaring," said the spokesman. "The flares are releasing material safely but the appearance is worse because of the loss of steam. There is no risk to people's health."

Fawley's on-site firefighting team extinguished the blaze and did not need the help of Hampshire Fire and Rescue Service.

However, the refinery spokesman confirmed that "substantial damage" was caused to the unit where the fire broke out.

Fawley is the UK's largest refinery. It processes more than 300,000 barrels of crude oil a day and supplies 14 per cent of the country's petroleum products.

"There is currently no immediate impact on supplies available for our customers," added the spokesman.

"The fire has had minimal impact on our ability to distribute products by pipeline, road and ship. We are working to resume normal operations."