Peru has authorized Algerian state oil firm Sonatrach to operate in Peru, following its projected purchase of an additional 20% share in the Camisea natural gas and condensate project from Argentina's Pluspetrol SA.
The percentage being acquired is evenly split between upstream and downstream holdings. Until now, Pluspetrol has held 36% of the project's upstream portion and 19.2% of the downstream.
- Independent crude oil marketer and transporter EOTT Energy LLC reported Sept. 5 that it will cut its petrochemical production operations starting Oct. 1. Houston-based EOTT's plan will include the "phasing out" of the company's Morgan's Point methyl tertiary butyl ether production complex at LaPorte, Tex.
In downstream news:
In midstream news:
- Talisman Energy Inc., Calgary, has acquired Vista Midstream Solutions Ltd., Calgary, for $130 million (Can.).
- Midcon Samarah Field Services LLC, Midland, Tex., agreed to buy more than $60 million worth of West Texas assets from the Denver-based Duke Energy Field Services (DEFS).
- Sunoco Logistics Partners LP, Philadelphia, has reached definitive agreements to acquire a 37.35% interest in Wilprise Pipeline Co. LLC and a 16.67% interest in Tri-States NGL Pipeline LLC from Williams Cos. Inc., Tulsa.
Sonatrach
Jaime Quijandria, Peru's economic and finance minister, announced Sept. 1 that Sonatrach is entering Latin America, and it also is seeking to do oil business in Ecuador, Colombia, and Vene- zuela, Quijandria said.
Pluspetrol, more interested in selling the downstream than the upstream, reportedly needed the funds to help cover its costs in the project, which the company so far had mainly handled with its own capital.
Sonatrach has held 10% each in the Camisea downstream and upstream projects since the consortium was formed in December 2000.
The project's cost originally was estimated at $1.6 billion. However, final expenditure could be $2 billion, given stricter monitoring and additional environmental restrictions.
The Export-Import Bank on Aug. 27 rejected a guarantee for loans for as much as $214 million for the Camisea natural gas project (see related story, p. 37).
EOTT
The Morgan's Point plant produced 12,000 b/d of MTBE, but MTBE demand is expected to decline sharply after Jan. 1, 2004, when California, New York, and Connecticut impose bans on the use of MTBE.
EOTT plans to continue operating its butane isomerization unit as well as its NGL storage and transportation system, which includes an NGL pipeline network in the Houston Ship Channel area, 10 million bbl of underground NGL storage capacity at Mont Belvieu, Tex., and dock facilities at Morgan's Point.
The company also will continue operating "certain other liquids processing, storage, and marketing facilities at its Morgan's Point complex."
EOTT Chairman and CEO Tom Matthews said, "We've incurred a $13.6 million liquids operating loss predominantly from MTBE operations in the first 6 months of this year." Following the end of the MTBE production, EOTT's liquids business will "focus on realizing returns from our liquids tolling, terminalling, transportation, and storage asset capacity," Matthews added.
Talisman
Talisman said Vista Midstream Solutions has assets in three areas: Cutbank, adjacent to Talisman's Deep basin play; Retlaw-Enchant-Turin in Southeast Alberta; and Freefight in Southwest Saskatchewan.
The Cutbank complex is Vista's major asset, representing two thirds of its revenue and value. Talisman has agreed to sell the assets at Retlaw-Enchant-Turin for $30.5 million. The buyer's identity was withheld. Talisman also is negotiating the sale of the Freefight assets.
The Cutbank complex, 80 km south of Grand Prairie, Alta., has numerous long-term contracts for firm service. It will continue operating as an open-access, midstream business.
The complex consists of the Cutbank gas plant, the Musreau gas plant, five major field compression stations, and a gas gathering system. Total processing capacity is 165 MMcfd of sweet gas with 80% utilization. The anticipated 2003 throughput is 136 MMcfd.
Midcon Samarah
From DEFS Midcon Samarah is buying a 125 MMcfd natural gas processing plant, more than 600 miles of gathering pipeline, and associated compression equipment. Closing is expected by Sept. 30.
A gas gathering and processing business, DEFS is a joint venture that combined the midstream units of Duke Energy Corp, Charlotte, NC, and Conoco- Phillips. Duke Energy owns 70%, and ConocoPhillips owns 30% of the JV.
Sunoco Logistics
Total consideration for the interests in both Wilprise Pipeline and Tri-States NGL Pipeline is $26.5 million, with an additional $8.3 million payable based on volumes transported through 2006. The transactions are subject to purchase rights held by existing owners. Closing is expected within 90 days.
Tri-States is a 161-mile NGL pipeline with a capacity of 95,000 b/d originating near Mobile Bay, Ala., and terminating at Kenner Junction near New Orleans. Tri-States transported 56,000 b/d in 2002.
Wilprise, a 33-mile NGL pipeline with a capacity of 60,000 b/d originating at Kenner Junction and terminating at Sorrento, La., transported 42,000 b/d in 2002.