INTERNATIONAL BRIEFS

July 30, 1990
PT BADAK NGL CO. started up the fifth 2.3 million ton/year gas liquefaction train at the Badak LNG plant on the east coast of Kalimantan, Indonesia, at a cost of about $294 million. PT Badak capacity is 11.5 million tons/year of LNG and 400,000 tons/year of LPG. Chiyoda Corp. handled engineering design and construction, and Union Carbide Co. provided its solvent gas treating technology for the plant.

LNG

PT BADAK NGL CO. started up the fifth 2.3 million ton/year gas liquefaction train at the Badak LNG plant on the east coast of Kalimantan, Indonesia, at a cost of about $294 million. PT Badak capacity is 11.5 million tons/year of LNG and 400,000 tons/year of LPG. Chiyoda Corp. handled engineering design and construction, and Union Carbide Co. provided its solvent gas treating technology for the plant.

PROCESSING

DOW CHEMICAL CANADA LTD. delayed for 1 year construction of an $800 million gas processing/petrochemical complex near Edmonton, Alta., because of lagging demand growth for polyethylene. Currently, an ethane extraction plant is to start up in second quarter 1993 and a second polyethylene plant in third quarter 1994.

IRAN started up an 84,000 metric ton/year methanol plant at Shiraz petrochemical complex. Methanol will feed a planned $70.6 million, 16,000 metric ton/year Melamine plant and possibly later a methyl tertiary butyl ether plant under study.

EXPLORATION

BASS ENTERPRISES PRODUCTION CO., Fort Worth, took a farmout on Harken Bahrain Oil Co.'s production sharing contract off Bahrain. Bass will pay for drilling of three wildcats and related seismic data acquisition and reprocessing. Two wells will probe Permian Khuff at about 14,000 ft and the third Jurassic Arab/Fadhili at about 9,000 ft. Operator Harken will spud the first well, 1 Jarim, by Jan. 1, 1991 (see map, OGJ, Mar. 12, p. 26).

TEXACO INC. 1 Savelha flowed at a combined rate of more than 6,000 b/d of 22-25 gravity oil from three Cretaceous dolomite zones at 7,515-8,010 ft on Block 2 off Northwest Angola. The fourth oil discovery on the block for Texaco and partners, it was drilled to 10,620 ft in 69 ft of water (OGJ, June 18, p. 31).

KUWAIT FOREIGN EXPLORATION CO. (Kufpec) will begin exploratory drilling in 1991 on the WA-217 P permit in the Bonaparte basin off Western Australia, reported Husky Oil International Inc. Husky holds a 30% interest in the 3,604 sq mile permit with remaining interests held by operator Kufpec and Marathon Oil Co. Term is for 6 years and calls for commitment of seven wells and 1,553 line miles of seismic surveys.

CONOCO (U.K.) LTD.'S 15/25b-3 wildcat flowed 2,690 b/d of 39 gravity oil and 420 Mcfd through a 1 in. choke from Paleocene sandstone in the U.K. North Sea. Drilled to 7,430 ft, the discovery is near North Sea Sun Oil's Glamis field in the adjoining block.

EXPORTS-IMPORTS

CORPOVEN SA, a unit of state owned Petroleos de Venezuela SA, signed a contract to buy 24,000 b/d of Ecuadorean oil from state owned Petroleos del Ecuador for 2 years for its Isla de Curacao refinery. Earlier this year, the two signed a contract for Corpoven to supply Petroecuador 6,000 b/d of LPG for 2 years.

PIPELINES

CANADA'S National Energy Board (NEB) will conduct hearings Sept. 10 on a proposal by TransCanada PipeLines Ltd. for a $29.6 million gas pipeline to New York. The 15.5 mile spur would ship 51 MMcfd of gas to Niagara Mohawk Power Corp., running from TransCanada's main line near Kingston, Ont., to the U.S. border at Wolfe Island. TransCanada unit Western Gas Marketing Ltd. wants to begin shipments Nov. 1, 1991, under a 279 bcf contract.

TRANSCANADA let two contracts for construction on its gas pipeline system in western Canada. Majestic Pipeliners, a unit of Majestic Contractors Ltd., Edmonton, will lay 89 miles of 48 in. line in Saskatchewan. Banister Pipelines, a unit of Banister Inc., also of Edmonton, will lay 73 miles of 48 in. line in Manitoba.

WESTCOAST ENERGY INC. applied to Canada's NEB for approval of its proposed $16.8 million Adsett gas pipeline expansion. It involves laying a 50 1/2 mile line from Adsett gas field in Northeast British Columbia to its Fort Nelson, B.C., gas processing plant. Construction would take place this winter, with service to commence Mar. 1, 1991, for one shipper and Nov. 1, 1991, for two others.

ACQUISITIONS

BOWTEX ENERGY (CANADA) CORP., Calgary, signed a letter of intent to buy all GJS Resources Ltd. oil and gas assets for about $36 million. GJS is a private Alberta company. Involved are production of 1,300 b/d of oil and 18 MMcfd of gas and reserves estimated at 3.5 million bbl of crude and 117 bcf of gas.

LASMO NORTH SEA PLC agreed to purchase Placid Oil Co (U.K.) from Placid Oil Co., subject to certain approvals. Placid U.K.'s main asset is a 22.97% interest in U.K. North Sea Block 16/21a containing Birch, North Birch, and Elm oil discoveries. Lasmo also acquired a 26.74% interest in 16/21a from Occidental Petroleum (Caledonia) in return for its 8.32% interest in undeveloped Chanter field in Block 15/17.

MARKETING

KUWAIT PETROLEUM (GB) acquired M Kamper Services Ltd., St. Ives, Cambridgeshire, U.K. Kamper operates 20 large service stations in eastern England. The purchase will hike the number of service stations under the Q8 brand to more than 800.

DRILLING-PRODUCTION

DET NORSK STATS OLJESELSKAP AS let a $36.5 million contract to Odfjell Drilling & Consulting Co. AS, Norway, to drill 19 development wells on Sleipner A gas platform in the Norwegian North Sea.

EOR INTERNATIONAL INC., a unit of ORS Corp., Calgary, will conduct a single well electromagnetic stimulation test for Mobil Oil Canada in Celtic field of Central Saskatchewan in early September. Celtic oil is about 15 gravity. EORI expects to conduct similar tests soon on two wells in Wabasca field in Northwest Alberta for Amoco Canada.

SANTOS LTD.'S 41 Toolachee appraisal well flowed 7.1 MMcfd and 81 b/d of condensate through a 1/2 in. choke on drillstem test of Lower Permian Patchawarra at 7,155-7,226 ft. It will drill ahead to target of 7,591 ft. Site is about 40 miles southeast of the Moomba gas processing plant on PEL 5 and 6 in South Australia. Interests are operator Santos 60%, Delhi 30%, and Sagasco Resources 10%.

COMPANIES

OCELOT INDUSTRIES LTD.'S natural gas division signed undisclosed agreements to finance another $22 million of drilling, land acquisition, and facilities construction related to gas development. The funds are in addition to $40 million in drilling funds the division arranged in second half 1989.

Copyright 1990 Oil & Gas Journal. All Rights Reserved.