Government
US Department of the Interior's
Minerals Management Service will hold three public workshops on the supplementary proposed rule for valuing oil produced on federal lands. The workshops-in Houston and Albuquerque on Jan. 19 and in Washington, DC, on Jan 20-are open to the public.
Cogeneration
Japan's Marubeni Corp.
and an unnamed Taiwanese partner will build a natural gas-fired cogeneration plant at Tashe Petrochemical Industrial Park in southern Taiwan. Marubeni will hold a stake of at least 50% in the $95.2 million plant. The firm agreed to participate after Taiwan agreed in principle to abolish a law requiring cogeneration unit operators to sell their excess output to state-owned Taiwan Power Co. at a preferential rate. The 100-Mw Tashe Union Cogeneration plant will supply power to six or seven firms in the industrial park. Funding is expected to be secured in first half 2000; operation could begin by first quarter 2002.
Companies
Orogen Minerals Ltd.
of Papua New Guinea acquired the Papua New Guinea oil and gas assets of BHP Petroleum Pty. Ltd. for $130 million. The sale includes a 9.6875% interest in the Kutubu, Gobe-Southeast Gobe, and Moran oil fields and an interest in exploration permit PPL 161. Another $10-15 million will be paid if there is future development of gas resources, as is planned to supply a proposed gas pipeline from Papua New Guinea to Queensland. The deal marks BHP's complete withdrawal from the area.
Schlumberger Ltd.
completed the spin-off of its offshore contract drilling business, Sedco Forex Offshore, to its stockholders and the merger of Sedco Forex and Transocean Offshore Inc. (OGJ, July 19, 1999, p. 26). Transocean is now known as Transocean Sedco Forex Inc.
Ocelot International Ltd.
acquired Shell Petroleum NV's stake in three subsidiaries that own oil-producing assets in the Democratic Republic of the Congo. The deal gives Ocelot a 45% stake in three concessions containing six fields. The concessions are in the west of the country near the mouth of the Congo River. Net Ocelot production from the fields is 3,500 b/d. The acquisition cost is $1.28/bbl of proved and probable reserves, says Ocelot.
Dynegy Midstream Services LP,
a unit of Dynegy Inc., Houston, agreed to sell four East Texas gas processing and treating plants and 675 miles of related gathering lines with 100 MMcfd of throughput to an unidentified independent midstream firm. Proceeds will be used to reduce debt. "Sales of less strategic assetsellipse, which are expected to exceed $600 million [by] midyear 2000, will reduce the expected size of a new equity offering fromellipse$400-500 million, as contemplated at the time the proposed merger between Dynegy and Illinova was announced, to about $250 million," said Dynegy Chairman Chuck Watson.
Petro-Canada
will increase capital spending in 2000 by 14% to $1.2 billion (Can.), to be split $955 million for upstream operations, $220 million for downstream, and $25 million in other areas. The firm recently completed acquisitions and a farm-in agreement for interests in properties in the Mackenzie Delta region, in the Flemish Pass basin off Newfoundland, and on the Scotian Shelf off Nova Scotia. A seismic program is scheduled for the Mackenzie Valley this winter, and for next summer in the two East Coast areas. Petro-Canada and partners plan to drill four to seven wells in the Jeanne d'Arc basin in 2000.
Exports-imports
Russia's Yukos Oil Co.
signed oil export contracts with China National Petroleum Corp. and China Petrochemical Corp. (Sinopec), increasing by 300% its oil exports to China. The contracts are for delivery of 7.28 million bbl of oil to Sinopec and 3.64 million bbl to CNPC. The first 365,000 bbl cargo was shipped in December 1999. The firms also agreed to speed development of a proposed 2,300-km, $1.7 billion, Siberia-Beijing oil pipeline. Russian crudes are now delivered to China via rail.
Pipelines
A combine of
UniSuper and National Australia Asset Management acquired the Moomba-Botany ethane pipeline in Australia from Orica Ltd, Melbourne, for $124 million (Aus.). The pipeline, built in the mid-1990s, transports ethane extracted from the Cooper basin natural gas production stream at Moomba in South Australia to the Orica petrochemical complex in Botany, south of Sydney. Orica is looking to continue divesting its remaining noncore plastics businesses and has had talks with potential buyers for the subsidiary Australian Vinyls Corp.
Enterprise Products Partners LP,
Houston, expanded plans for development of a US Gulf Coast NGL pipeline system (OGJ, Aug. 9, 1999, p. 27). Enterprise ordered pipe for a 206-mile, 12-in. NGL pipeline that will connect its Breaux Bridge, La., storage facility with its Mont Belvieu, Tex., NGL and liquids complex. The line is an expansion of the Lou-Tex propylene pipeline system that Enterprise acquired in 1999. The line, with an initial capacity of 50,000 b/d in batch mode, will transport mixed NGLs and various NGL products; Enterprise plans to expand capacity to 80,000 b/d. Construction will be completed by third quarter 2000.
Exploration
Chevron Offshore (Thailand) Ltd.
found what it calls "potentially significant" hydrocarbon deposits in the Jarmjuree area on Block B8/32 in the Gulf of Thailand. The discoveries have prompted Chevron to apply for a production license area (PLA) to develop the reserves; it hopes to gain PLA approval by mid-2000. Potential reserves have been proven by several successful drilling tests in the northern sector of the Jarmjuree area, says Chevron, including about 200 ft of net pay from its most recent discovery. Block B8/32 partners are: operator Chevron, 51.66%; Pogo Producing Co. unit Thaipo Ltd., 46.34%; and Palang Sophon, 2%.
Power
AES Enterprise Inc. unit
AES Londonderry LLC let contract to Stone & Webster Inc., Boston, for engineering, procurement, and construction of a 720-Mw, natural gas-fired, combined-cycle power plant to be built in Londonderry, NH. Engineering work has begun, and construction is slated to begin in summer 2000. Completion is expected in first-half 2002.
Drilling-production
Anadarko Algeria Corp.,
a unit of Anadarko Petroleum Corp., Houston, signed an addendum to an engineering, procurement, and construction contract with Brown & Root-Condor for development of Stage II facilities at Hassi Berkine South field on Blocks 403 and 404 in Algeria (OGJ, Oct. 11, 1999, p. 46). The addendum will "lead to further expansion ofellipseproduction capabilities in Algeria by providing for development of the Hassi Berkine oil field," Anadarko said. The expanded contract covers installation of a 75,000 b/d production train, a gathering system, injection lines, and crude oil storage and export facilities.
Apco Argentina Inc.,
Tulsa, and its partners drilled, completed, and put into production the Borde Mocho 2 well in the southeast portion of Entre Lomas field in Southwest Argentina. On test, the well, which cut multiple pays, flowed a combined 3,000 b/d of oil. Because the Borde Mocho region is not served by a pipeline or other production installations, initial production has been restricted to 600 b/d, which will be shipped by truck. Operator Apco holds a 47.64% interest in Entre Lomas field.
Cyclone John
forced the shut-down of several fields on Australia's North West Shelf. Woodside Petroleum Ltd. disconnected the Cossack Pioneer floating production, storage, and off- loading vessel (FPSO) and sailed it westward. Woodside also evacuated nonessential personnel from the North Rankin and Goodwyn gas platforms, leaving 50 workers on Goodwyn and 80 on North Rankin, where 9 m waves were recorded and winds were expected to reach 280 km/hr. BHP Petroleum shut down 45,000 b/d of oil production at Griffin field and readied the FPSO to move, if necessary. And Apache Energy Ltd. shut in Stag oil field.
Apache
and its partners increased oil production from Stag field off Western Australia before Cyclone John forced a temporary shut-in. By bringing two additional wells on stream (Stag 19H and 20H), output, which averaged 13,000 b/d in November 1999, was boosted to 23,700 b/d. The field, on Carnarvon basin License WA-15-L, is operated by Apache with 33.33%; other partners are Santos Ltd. (54.17%) and Globex Far East (12.5%).
American International Petroleum Corp.
(AIPC), New York, signed an agreement to form a joint venture with Russia's Tyumen Oil Co. for the financing and development of License 1551-comprising the Shagyryl-Shomyshty gas field-in Kazakhstan. Tyumen will provide half of the required development capital and will assist AIPC in raising its share. In return, Tyumen will receive a 50% interest in the field. AIPC will serve as operator, and Tyumen will supply the chief technical and supervisory personnel.
Chevron Australia Pty Ltd.
was named operator of the oil and gas exploration and producing assets off Western Australia that were previously managed by West Australian Petroleum Pty. Ltd. (WAPET)-a consortium of Chevron Australia, Texaco Australia Pty. Ltd., Mobil Exploration & Producing Australia Pty. Ltd., and Shell Development Australia Pty. Ltd. WAPET produces 12,000 b/d of oil from Barrow Island fields and 18,000 b/d from Thevenard Island and owns the Greater Gorgon gas fields.
Apache Corp.,
Houston, increased its gross production in Egypt to more than 100,000 boe/d since mid-1998, mainly due to an accelerated drilling program in the area and an increase in production from its Khalda concession, to 38,260 b/d from 30,000 b/d. Including condensate, the Khalda concession is producing 50,000 b/d of liquids. Apache and its concession partner, Repsol-YPF SA, drilled 60 wells over the last 18 months and expect to drill 50 more in 2000. Khalda output is expected to surpass 200 MMcfd in 2000.
BP Amoco PLC
accepted the Discoverer Enterprise drillship under a 5-year, $360 million contract with the former Transocean Offshore Inc. (now Transocean Sedco Forex Inc.). After appraising and testing equipment in more than 6,100 ft of water at BP Amoco's Neptune project in the Gulf of Mexico, the dynamically positioned, ultradeepwater vessel will begin drilling an appraisal well in Crazy Horse field. "With its dual-activity drilling capability, the [ship] conducts drilling steps simultaneously, rather than in the sequential steps taken by conventional rigs," Trans- ocean said (OGJ, May 10, 1999, p. 26).
Gas distribution
Gas Natural Mexico
(GNM), a unit of Spain's Gas Natural SDG, was awarded the concession to distribute natural gas in Mexico's Baj
Petrochemicals
Saudi Basic Industries Corp.
is planning to build a $400 million, 450,000 tonne/year polypropylene plant at Jubail, the Al Hayat newspaper reported. Tenders for the project will be offered in first quarter 2000; the plant is expected to be completed in 28 months. Agreement was reached with Saudi Aramco on the project's site and on feedstock supply. Work on the project is slated to begin by mid-2000.
China American Petrochemical Co. Ltd.
(CAPCO)-a joint venture of BP Amoco, Taiwan's state-owned Chinese Petroleum Corp., and Central Investment Holding Co.-finalized plans to build a 700,000 tonne/year purified terephthalic acid plant at Taiwan's Taichung Harbor. If the project passes an environmental evaluation early this year, it could begin operating in 2003. The $320 million plant will use a BP Amoco process. CAPCO planned to build it on a site in Kaohsiung's Linyuan Petrochemical Industrial Park purchased from ARCO Chemical Taiwan Co. in 1998, but area residents protested. CAPCO purchased the new site from Bayer AG.
Alternate fuels
US Department of Energy
signed a $7.2 million research and development initiative with Electricore Inc., Indianapolis, and Delphi Automotive Systems Corp., Troy, Mich., for the development of advanced motor-generator systems for producing hybrid and fuel-cell vehicles. Delphi said DOE will provide $3.6 million over the next 3 years, which Delphi will match. "We intend to make hybrid propulsion affordable and to be able to help take the automobile out of the environmental equation," said Delphi.
Products marketing
USA Express Inc.,
Houston, acquired 70 retail operating units from Ultramar Diamond Shamrock Corp., San Antonio. USA Express plans to rebrand the sites, which are mainly in Houston, San Antonio, Corpus Christi, and central Texas. UDS has sold 217 sites during 1999, it said; proceeds from the sales total $58.7 million, says UDS.