GENERAL INTEREST — Quick Takes
Chevron says oil seep has decreased off Brazil
Chevron Corp. reported that successful well-control operations significantly reduced an oil seep believed to be coming from an appraisal well in Frade field offshore Brazil.
Upon receiving approval from the Brazilian National Agency of Petroleum (ANP) on Nov. 13, Chevron Brazil immediately commenced plugging and abandonment activities.
"The amount of oil observed coming from nearby seep lines on the ocean floor has decreased significantly," Chevron said, adding that it continues to monitor activities that will culminate in final cementing of the well.
Chevron estimates the sheen volume at 400-650 bbl. Six vessels are working in pairs to contain and recover the oil while two vessels are working on mechanical dispersion.
The sheen is 120 km offshore and moving southeasterly away from the Brazilian coast. The Frade project is in 3,800 ft of water some 370 km northeast of Rio de Janeiro.
Chevron, which has 51.74% interest, started production at Frade field in 2009 (OGJ Online, June 23, 2009).
Partners in the field are Petroleo Brasileiro SA 30%, and Frade Japao Petroleo Ltda., a joint venture of Inpex Corp., Sojitz Corp., and Japan Oil, Gas & Metals Corp. 18.26%.
USI acquires Bossier-Haynesville gas gathering
US Infrastructure Holdings LLC (USI) will acquire the Wildcat Sabine natural gas gathering system in the Bossier-Haynesville shale and expand it to nearby interstate carriers. The 28-mile pipeline lies along the Texas-Louisiana border in the northwest corner of Sabine Parish, La., and transports gas for producers such as Eagle Oil & Gas Co.
USI will build a 20-mile extension and expansion at its southern end, providing direct access to markets served by Gulf South Pipeline Co. LP and Tennessee Gas Pipeline. The expansion, expected to be complete by mid-2012, will bring Wildcat's takeaway capacity to 400 MMcfd.
Wildcat currently has takeaway capacity of 200 MMcfd and includes treating and compression facilities. The system already interconnects with four regional gathering systems: Enterprise Products' State Line Gathering System, KinderHawk's Gas Services, Producers Gas Transmission, and Tristate Sabine Gathering System.
Eagle Oil has dedicated production from its acreage in the Bossier-Haynesville shale North Toledo Bend Project for transport on Wildcat.
Nigeria moving to end fuel subsidies
The government of Nigeria, Africa's largest oil producer and a member of the Organization of Petroleum Exporting Countries, is taking the politically sensitive step of moving to end fuel subsidies.
President Goodluck Jonathan says the government will use money saved by ending subsidies, which otherwise would cost an estimated $7.5 billion next year, on infrastructure and social programs.
Nigeria recently has been producing about 2.3 million b/d of oil and consuming about 280,000 b/d. Its productive offshore continues to yield discoveries (OGJ Online, Nov. 7, 2011).
Because utilization is low at the country's four refineries, which have total capacity of 445,000 b/d, Nigeria imports oil products.
Subsidies keep domestic oil prices at about 40¢/l.
Trade unions have threatened to strike if subsidies end next year as proposed.
ConocoPhillips to name downstream firm Phillips 66
ConocoPhillips plans to name its emerging new independent downstream company Phillips 66, which will be based in Houston, ConocoPhillips said. The corporate repositioning remains subject to market conditions, regulatory approvals, and final corporate board approval.
In July ConocoPhillips announced plans to separate its upstream and downstream businesses into two stand-alone, publicly traded corporations via a tax-free spinoff of the refining and marketing business to ConocoPhillips shareholders (OGJ Online, July 14, 2011).
Phillips 66 will be involved in refining, marketing, midstream, and chemicals. Greg Garland, designated chairman and chief executive officer, noted the name has strong brand recognition and provides a link with corporate history.
ConocoPhillips, which will be a pure-play exploration and production company after the repositioning, will continue to be based in Houston. Bartlesville, Okla., will be the global center for the Phillips 66 technology organization. The ConocoPhillips exploration and production technology organization will be based in Houston. The repositioning of ConocoPhillips is expected to be completed in second-quarter 2012.
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