BP Amoco and SINOPEC plan world-scale petrochemicals complex

BP Amoco PLC announced the signing in London on Oct. 20 with China Petrochemical Corp. (SINOPEC) of a framework agreement to undertake a joint feasibility study for a world-scale ethylene cracker and derivatives complex in Shanghai.

The company said the project proposal for a 650,000 tonnes/year ethylene and derivatives complex was approved by the Chinese government earlier in the month, with full support from the Shanghai municipal and Zhejiang provincial governments.

The proposal was first mooted in 1996, when SINOPEC and its Shanghai Petrochemical Co. affiliate signed a letter of intent to consider a 50/50 joint venture with the former BP Chemicals. In July 1997 SINOPEC and BP completed a pre-feasibility study and submitted a $2.5 billion project proposal to the government.

BP Amoco and SINOPEC aim to complete the joint feasibility report, negotiate a joint venture contract, and complete other commercial agreements by the end of 2000. The JV would be established by the end of 2001 with a view to completing construction of the cracker and derivatives plants by 2005.

Bryan Sanderson, chief executive of BP Amoco Chemicals, said: "Today's signing of the agreement further develops the cooperative relationship between SINOPEC and BP Amoco, based on the successful cooperation in the Yangtze River Acetyls Co. Ltd. (YARACO)."

SINOPEC Vice President Wang Jiming added, "The Shanghai cracker project will contribute significantly to SINOPEC's aim of building several million-tonne ethylene sites in China in stages after year 2000 and to the economic development of both Shanghai municipality and the Yangtze River Delta."

New projects

Lukoil and Conoco Inc. announced that their proposed Northern Territories Block project, which will be based around development of the giant Yuzhno Khilchuyu field in the Timan-Pechora region, passed its third and final reading by the Duma.

The project will now pass into legislation on government's list of fields eligible under PSA deals. Conoco sees the project, which is thought to have potential reserves of 1.3 billion bbl of oil, as a means to build on its earlier Polar Lights development.

John Capps, president of Conoco International, said: "This is a significant achievement toward our goal of joint development of the oil and gas reserves in the Northern territories. Passage by the Duma gives us a formal right to begin negotiations on a production sharing agreement with the state."

Repsol-YPF SA disclosed a large oil and gas find on the Caipipendi block in southern Bolivia. The operator said the Margarita-X3 well flowed 2 million cu m/d of gas and 2,300 bo/d from one formation.

Drilling has not yet finished, and Repsol-YPF said it expects to discover further productive layers. The company said estimated reserves for the current find amount to more than 300 million boe, but that this figure could double before exploration work is completed.

License interests are: operator Repsol-YPF 37.5%, BG PLC 37.5%, and Atlantic Richfield Co. 25%. "The discovery," said Repsol-YPF, "has great economic relevance because of its proximity to the Bolivia-Brazil gas pipeline, which will transmit Bolivian gas to the Brazilian markets."

Ireland's Seven Heads oil and gas find, which lies 32.5 km west southwest of the Kinsale Head has field off the south coast, where Marathon Petroleum Ireland Ltd. is operator, is being mooted as a development prospect 25 years after it was found by Esso Ireland Ltd.

Aberdeen's Ramco Energy PLC and fellow independents Duke Engineering & Services Ltd., Island Petroleum Developments Ltd., and Sunningdale Oils (Ireland) Ltd., secured an 18-month 'licensing option' to study existing data on the find, which lies in 330 ft of water.

Ramco and partners will evaluate four wells drilled by Esso and Marathon during 1974-90, each of which was said to have recorded significant shows of oil and gas. Ramco reckons that much has changed since the strike, and that Ireland now represents a robust market for gas. The company will focus on the evaluation, estimation, and deliverability of the Seven Heads gas reserves.

Project focus: Germany marks completion of gas pipelines

Germany's massive gas infrastructure became even more formidable with the completion of two new pipelines, one bringing gas from Norway and another linking an import point for Russia gas to central Germany.

Ruhrgas AG, Essen, marked the end of commissioning of the Europipe II gas trunkline on Oct. 1. This 660 km long pipeline was built by a group of Norwegian gas exporters, led by state firm Statoil AS, to deliver gas from the Karstø processing plant on the coast of mid-Norway to Dornum, Germany,

Ruhrgas is Europe's largest importer of Norwegian gas, with total imports amounting to 12 billion cu m in 1998. The Europipe II link will be used to carry most of Ruhrgas' imports, as Norway's exports to Germany grow from 19% of German demand in 1998 to 30% in 2010.

Ruhrgas receives the gas at Dornum and transports it to the main Ruhrgas grid through the Norddeutsche Erdgas Transversale (NETRA) pipeline, extended this year with a 49 km link from Etzel to Dornum. NETRA is operated by a joint venture of Statoil, Norsk Hydro AS, BEB Erdgas & Erdol GMBH, and Ruhrgas.

Meanwhile, Wingas GMBH, Kassel, Germany, completed the JAGAL gas pipeline which carries gas from Frankfurt am der Oder, where the border link to the Russian YAMAL pipeline is located, to Rückersdorf 336 km away. At Rückersdorf, which lies due south of Leipzig, the JAGAL pipeline meets the STEGAL pipeline, part of Wingas' north German gas grid.

The JAGAL pipeline has the capacity to deliver 28 billion cu m of gas from Russia's Yamal peninsular to, which Wingas claims is equivalent to one quarter of Germany's annual demand. Wingas is a joint venture of German distributor Wintershall AG and Russian producer Gazprom.

Related Articles

BC bill advances Pacific Northwest LNG

07/22/2015 The British Columbia legislature has passed a controversial bill enabling the proposed Pacific Northwest LNG export project to advance (OGJ Online,...

Excelerate FSRUs complete LNG transfer at Pakistan terminal

07/22/2015 Excelerate Energy LP, The Woodlands, Tex., reported the completion of the first ship-to-ship (STS) transfer of LNG at the Engro Elengy LNG terminal...

BHP Billiton still interpreting deepwater Trinidad and Tobago seismic data

07/22/2015 BHP Billiton, the operator of all of the deepwater blocks awarded by Trinidad and Tobago, has said it will decide how many wells it will drill base...

BLM extends comment period for Colorado oil, gas project’s EA

07/21/2015 The US Bureau of Land Management has extended the comment period for a preliminary environmental assessment (EA) of a proposed oil and gas project ...

Study looks at gas transmission, storage sites’ methane releases

07/21/2015 A comprehensive study of US natural gas transmission and storage operations found total methane emissions from 2,292 on-site measurements, addition...

Geophysical surveys due onshore Tanzania

07/21/2015 Tanzania Petroleum Development Corp. has let a contract to CGG for geophysical surveys over two onshore areas in preparation for future licensing r...

URTeC: Shell’s Hackbarth says unconventional innovation begins with data

07/20/2015 Operators should resist the impulse to pull back on investments in technology despite a down oil market, said Claudia J. Hackbarth, manager, unconv...

Nile Delta gas strike due on production


Eni SPA said a natural gas discovery on the Nooros prospect in Egypt will be placed on production at an unspecified rate within 2 months.

URTeC: Panel sees resiliency in unconventional space

07/20/2015 Panelists commented on future recovery of oil prices and the growth of unconventional drilling, then took questions from an overflow audience durin...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected