Refining
Overseas Private Investment Corp.,
a self-sustaining US federal government agency, agreed to finance $85 million via a credit facility for construction of a $170 million, 36,000 b/d refinery to be built at Napa Napa on Papua New Guinea's Port Moresby Harbor (OGJ, Jan. 17, 2000, Newsletter). The refinery, to be owned and operated by InterOil Corp., Houston, will receive crude oil from the Kutubu-Gobe oil fields in the southern highlands via tankers offloading at Kumul terminal in the Gulf of Papua. Construction is expected to begin this year and take about 20 months.
Russian firm Tyumen Oil Co.
agreed to buy a 67.41% stake in Ukraine's Lysychansk oil refinery from Ukrainian State Property Fund. Tentative terms call for the payment of $5 million plus the supply of 4 million tonnes of oil to the refinery over a 5-year period and the assumption of $170 million in debt. In a separate deal, Ukraine also is selling the Kherson refinery to the Kazakhstan's state company Kazakoil, which will supply the plant with crude oil.
Pipelines
Russia's Transneft
plans the first phase of start-up in May of its expanded Caspian Sea region crude oil export pipeline from Baku, Azerbaijan, to the Russian Black Sea port of Novorossiisk-including the 329-km section bypassing Chechnya. That section was reportedly completed in early April. Transneft Vice-Pres. Sergei Grigoryev said construction of the entire system will be completed soon. Grigoryev also said the state oil companies of Kazakhstan and Turkmenistan have given preliminary consent to move about 2 million tonnes/year of oil through the revamped pipeline, but tariff issues still must be resolved.
George Strait Crossing Pipeline Ltd.,
a partnership of British Columbia Hydro & Power Authority (BC Hydro), Vancouver, BC, and Williams Gas Pipeline Co., a unit of Williams, Tulsa, requested a preliminary environmental approval from Canada's National Energy Board for the construction and operation of its proposed natural gas pipeline to Vancouver Island (OGJ, Oct. 11, 1999, p. 47). The 31-mile, 16-in. Canadian portion of the pipeline will have capacity of 100 MMcfd and is expected to be completed in November 2002 at a cost of $57 million (Can.). The partners expects to file a full application with NEB this fall.
Equilon Pipeline Co. LLC,
Houston, and Tulsa's Williams Energy Services scrapped their joint venture to build, own, and operate a 1,010-mile, refined products pipeline system from West Texas to Salt Lake City (OGJ, May 10, 1999, p. 37). Revised start-up projections and changing project economics were cited as the two main factors behind the decision to shelve the project. The two companies will continue with separate plans for refined product lines: Williams is to build a pipeline from northwestern New Mexico into the Salt Lake City area, and Equilon intends to develop a 500-mile, 40,000 b/d pipeline from Odessa, Tex., to Bloomfield, NM. Equilon's proposed line is slated for start-up in 2001.
Alternate fuels
Norske Shell,
a unit of Royal Dutch/Shell Group, and Siemens Westinghouse Power Corp., are to demonstrate a solid-oxide fuel cell power-generation technology fueled by natural gas that is intended to produce electric power with a sharp reduction in emissions of greenhouse gases. The demonstration will be conducted at a 250-kw plant Norske Shell will build and operate in Norway. Norske Shell plans to use such technologies in offshore operations to meet greenhouse gas emissions reduction targets.
Drilling-production
Phillips China Inc.,
a unit of Phillips Petroleum Co., completed appraisal drilling on its Peng Lai 19-3 discovery well on Block 11/05 in China's Bohai Bay. Phillips expects to recover about 500 million bbl from the field's central crest area, which is where it will focus initial development. Later development will involve the field's flank areas-which yield a heavier crude more typical in the bay and are expected to add 200-300 million bbl of oil reserves over the field's projected 30-year life. The first of a two-phase program will involve one wellhead platform and a floating production, storage, and offloading (FPSO) vessel; Phase I flow, to start up in fourth quarter 2001, is projected to reach 35,000-40,000 b/d.
BG International Ltd.
let a 60 million euro contract to Coflexip Stena Offshore Ltd. for engineering, procurement, construction, and installation of facilities in Blake field in 90 m of water off Scotland. Blake will be tied back 9.5 km south to the Ross FPSO. The project includes use of Coflexip's pipe-in-pipe technology to insulate the oil. The field is expected to come on stream in 2001.
Ranger Oil Côte d'Ivoire SARL,
a unit of Ranger Oil Ltd., Calgary, and its partners let contract to SaiBOSan-a joint venture of Saipem SA and Bouygues-Offshore SA-for engineering, procurement, construction, and installation of field facilities for Ivory Coast's Espoir field on Block CI-26 about 60 km southwest of Abidjan. The contract entails installation of an unmanned wellhead platform, to be installed in 400 ft of water over the East Espoir accumulation, and an export subsea gas pipeline off Ivory Coast. First oil from Espoir is expected at yearend 2001. Espoir field partners are operator Ranger, 36.33%; Addax Peroleum Côte d'Ivoire Ltd., 22.34%; Tullow Côte d'Ivoire Ltd., 21.33%; and Petroci Exploration Production SA, 20%.
BP Amoco PLC
let a 75 million kroner contract to Aker Offshore Partner AS, a unit of Aker Maritime AS, Oslo, for an upgrade of its Ula platform in the southwestern Norwegian North Sea. The agreement also covers modifications to other BP Amoco platforms in the Norwegian North Sea for up to 5 years. Ula platform will receive and process oil from the new Tambar satellite platform as well as be able to control the platform from 16 km away. The upgrade is due for completion by summer 2001.
Santa Fe Snyder Corp.,
Houston, and its partners said Panyu 5-1-2 well on the South Bootes structure on Block 15/34 in the Pearl River Mouth Basin off China extends the Bootes field and upgrades reserve estimates to 50-70 million bbl. The company will submit development plans and expects production from Bootes by yearend 2002. Expected flow is 40,000-60,000 b/d of 28° gravity oil. Operator Santa Fe Snyder holds an equal interest in the block with Baker Hughes E&P Solutions. China National Offshore Oil Co. maintains the right to participate with up to 51% interest.
Surgutneftegaz Co.
won a tender for development rights to two oil-bearing blocks in the Khanty-Mansiysk Autonomous Region. Postulated reserves are pegged at 130-140 million tonnes. If confirmed, that would hike Surgutneftegaz oil reserves by more than 10%.
Petrochemicals
BASF AG
let contract to Raytheon Engineers & Constructors (RE&C), a unit of Raytheon Co., Cambridge, Mass., for turnkey engineering, procurement, construction, and start-up of two European petrochemical projects valued at a combined $120 million. The first project, to be completed in first quarter 2002, involves replacement of technology and a revamp at BASF's Ludwigshafen, Germany, complex. After the revamp, the complex will have capacity for 600,000 tonnes/year of ethylbenzene and 550,000 tonnes/year of styrene monomer. The second project, expected to be completed in third quarter 2001, involves a new 890,000 tonne/year ethylbenzene unit at BASF's Antwerp complex.
Methanex Corp.,
Vancouver, BC, plans to buy Saturn Methanol Co. for about $28 million (US). Through Saturn, Methanex will acquire a 10% interest in and marketing rights to the 860,000-tonne/year Titan methanol plant in Trinidad and Tobago. As part of the deal, Saturn's Deo Van Wijk will enter into a consulting agreement to develop further business opportunities for Methanex.
Companies
Hungary's MOL
agreed to buy 36.2% of Slovakian oil firm Slovnaft for $262 million. MOL, which is presently 50% privatized, says the stake will make it a regional downstream leader. It will hold Hungary's Szazhalombatta refinery, Slovakia's 90,000 b/d Bratislava refinery, and service stations from both companies in Ukraine, Poland, Romania, and the Czech Republic.
Duke Energy International,
a unit of Duke Energy Corp., Charlotte, NC, will acquire 100% interest in Mobil Europe Gas Inc. (MEGAS)-a gas marketer operating in the Netherlands-from ExxonMobil Corp. The sale is subject to European Commission approval under terms of its approval of the Exxon-Mobil merger. MEGAS will be known as Duke Energy International Netherlands Trading & Marketing BV.
Alstom,
Zurich, is acquiring Paris-based ABB Group's share in their 50-50 joint company ABB Alstom Power for 1.25 billion euros. Alstom will incorporate the power company into its sector reporting structure, it said. ABB will use proceeds from the deal to enhance its position in business-to-business e-commerce, said Goran Lindahl, ABB president and CEO.
The US Federal Trade Commission
approved the consolidation of gas gathering and processing assets that Duke Energy Field Services LLC will operate. It approved the merger of operations of Duke Energy and Phillips Petroleum Co. and Duke's purchase of Oklahoma gas gathering assets owned by Conoco Inc. and Mitchell Energy & Development Corp. FTC is requiring Duke to divest other gas gathering assets.
The Polish Cabinet Economic Committee
(KERM) will split up and later privatize state oil and gas firm Polsko Gurnistvo Naftowe i Gazownistwo (Polish Oil & Gas Co., or PGNiG). KERM says PGNiG holds a monopoly in natural gas exploration and production, marketing, and transportation in Poland. An earlier privatization plan called for splitting PGNiG into two firms-one for E&P and the other for gas trading. Under the new proposed plan, one E&P company and four gas distribution firms will by carved out of PGNiG, with the spunoff firms' shares then sold to companies already in the gas sector. After the spinoff, the parent will manage gas pipelines and storage and be privatized next year.
Chevron Corp.
acquired a 25% interest in Chad Development Consortium, which will develop the Doba basin oil fields in southern Chad and build a 650-mile export pipeline project through Chad and Cameroon (OGJ, May 12, 1997, p. 54). Doba fields are expected to produce 1 billion bbl of oil over the next 25-30 years. ExxonMobil Corp. operates the $3.5 billion project, and Petronas is another partner. Construction is to begin this year.
Ocelot International Ltd.,
St. Helier, Jersey, is changing its name to PanAfrican Energy Corp. Ltd. and will reincorporate in Jersey in the UK Channel Islands. It said the name reflects its focus on energy development projects in sub-Saharan Africa. The change is subject to shareholder and regulatory approval. Ocelot, once based in Calgary, changed its name from Ocelot Energy Inc. in May 1999 after selling its Canadian assets (OGJ, May 17, 1999, p. 38).
TXU Europe,
formerly Eastern Group, plans to make a cash offer for Spain's Hidroel
Sempra Energy,
San Diego, and 14 other US gas and electricity companies plan to establish a business-to-business procurement exchange that will allow utilities to trade goods and services through an internet portal. Included in the group are Consolidated Edison, Pacific Gas & Electric, Edison International, Texas Utilities, and Florida Power & Light. PriceWaterhouseCoopers is to help set up the exchange, which is slated for launch in the third or fourth quarter.
Exploration
Turkmenistan
is offering thirty-two 2,500 sq km blocks on its central and southern Caspian Sea continental shelf to foreign companies for exploration and production. It says the areas could encompass a respective 73% and 35% of what the country claims is a postulated resource in place of 23 trillion cu m of gas and 12 billion tonnes of oil.
Vanco International Ltd.,
a unit of Vanco Energy Co., Houston, signed a production-sharing agreement with Equatorial Guinea for the Corisco Deep block off the Rio Muni portion of Equatorial Guinea. Corisco lies in 200-2,500 m of water and covers 4,475 sq km. The block is 24 km southwest of and on trend with Triton Energy Ltd.'s recent Ceiba discovery, which is on production (OGJ, Apr. 3, 2000, p. 34). Van- co's agreement involves the acquisition of 2D and 3D seismic and the drilling of two wells in 5 years. Vanco is operator and holds a 100% interest in the block.
Bangladesh
assigned a production-sharing contract to Unocal Bangladesh Ltd. and state firm Bangladesh Petroleum Exploration Co. Ltd. for Block 7. Unocal expects to explore for natural gas resources on the block.
Adair Yemen Exploration Ltd.,
a unit of Adair International Oil & Gas Inc., Houston, and its partners signed a production-sharing agreement to explore Block 20 in Yemen. The companies will acquire seismic data and drill two to six exploration wells, spending up to $16.3 million over 6 years. Work will begin after government ratification of the agreement. Adair holds 30% of the block and will operate during the exploration phase; Occidental Yemen Sabatain Inc. holds 50% and will operate during development if commercial reserves are found; and Saba Yemen Oil Co. Ltd. will hold 20%.