INTERNATIONAL BRIEFS

Sept. 10, 1990
ERCROS SA of Spain is negotiating a fertilizer marketing alliance with Italy's Enimont SpA, focusing on the European market. Ercros has 4.4 million metric tons/year of fertilizer production capacity, Enimont 5.1 million tons/year.

MARKETING

ERCROS SA of Spain is negotiating a fertilizer marketing alliance with Italy's Enimont SpA, focusing on the European market. Ercros has 4.4 million metric tons/year of fertilizer production capacity, Enimont 5.1 million tons/year.

COMPANIES

DENISON MINES LTD., Toronto, took a second quarter $80 million (Canadian) writedown of its oil interests in Italy resulting from a ceiling test that determined cost recovery on the basis of the price of oil on June 30. The test is required by the Canadian Institute of Chartered Accountants. Since June 30, the price Denison has received for oil produced in Italy has more than doubled.

COSEKA RESOURCES LTD., Calgary, has been given until Oct. 1 to submit a plan to settle its financial affairs to the Alberta Court of Queen's Bench. Coseka said it will continue business operations while it prepares a plan of arrangement. Coseka is operating under protection of the Companies' Creditors Arrangement Act while it tries to resolve debt problems.

INDIA'S Oil & Natural Gas Commission raised 30 billion yen in the Japanese capital market through a 10 year public issue by Nikko Securities. The loan follows ONGC's deal covering 250 million deutschmarks through a similar public offering managed by a group of West German banks.

BRYMORE ENERGY LTD., Calgary, signed a 20 year contract to sell 117 bcf of gas for $350 million to Dartmouth Power Associates, Dartmouth, Mass. Brymore, a gas marketer, will buy the gas from Columbia Gas Development of Canada Ltd., Canadian Natural Resources Ltd., Excel Energy Inc., and Remington Energy Ltd for resale to a Commonwealth Electric Co. power plant scheduled for completion in 1992.

SHELL NORTHERN PLANTS, Aberdeen, signed a partnering contract with Foster Wheeler Wood Group for engineering and design modifications on Shell's St. Fergus and Mossmorran gas terminals. Foster Wheeler said it is the first agreement of its kind in the U.K.

PETROCHEMICALS

STONE & WEBSTER ENGINEERING LTD., Milton Keynes, England, will study feasibility of revamping and expanding Norsk Hydro's ethylene plant at Rafnes, Norway. Stone & Webster will try to apply its furnace and advanced recovery system technology to help Norsk Hydro hike capacity to 500,000 tons/year from 390,000 tons/year.

EXPLORATION

A JOINT VENTURE of Mobil Exploration Somalia Inc. and Pecten Somalia Co. plans to spud the first wildcat on a 14.9 million block off Somalia early in 1991. Pecten, awarded the concession in 1988, has conducted extensive seismic surveys of the concession, which extends along 1,200 km of Somalia's Indian Ocean coast. The two will share 50-50 exploration risk and any resulting production.

SAGA PETROLEUM, Oslo, acquired a 20% interest in the Jambi Merang block in South Sumatra from a unit of Ste. Nationale Elf Aquitaine. Elf retains a 30% interest in the block. Indonesia's state owned Pertamina, holds the remaining 50%. Seismic surveys will get under way this year, and drilling is to start in 1991.

DRILLING-PRODUCTION

PHILLIPS PETROLEUM CO. U.K. LTD. began oil production at 6,500 b/d from its 16/29a-8z Moira field discovery well in the U.K. North Sea, about 160 miles east-northeast of Aberdeen. The well, in 317 ft of water, was completed as a sole producer and tied back to Phillips' Maureen platform, also on Block 16/29a.

AMOCO NORWAY OIL CO. started flow at 3,000 b/d from the 25 million bbl Hod oil field with the first unmanned satellite platform off Norway. The satellite is tied back to Valhall platform, 13 km north, in the Norwegian North Sea. Production will build to 25,000 b/d when all five wells are on stream.

AS NORSKE SHELL let a 64 million Norwegian kroner contract to Mannesmann Demag for four gas gathering/reinjection compressors for installation on the Draugen field platform in the Haltenbanken area off Norway. Mannesmann will deliver the compressors to Kvaerner Rosenberg in Stavanger for installation as part of the Draugen topsides. Field start-up is set for August 1993.

TOTAL EXPLORATION'S 3 Sancy Les Provins step-out flowed 1,200 b/d of 36 gravity oil from Jurassic Dogger at about 6,300 ft on the Montmirail permit in the Paris basin, about 60 miles east of Paris and 10 miles southwest of Villeperdue field. A discovery well, tapping the same pay, flowed 160 b/d. Total shares the permit 50-50 with Triton France.

REFINING

INDIA rejected the U.S.S.R.'s $1.735 billion bid to build the proposed 120,000 b/d Karnal refinery in Haryana. India's project cost estimate is $930 million. The project, planned by a joint venture of the U.S.S.R., Indian Oil Corp., and Tatas, still may accept a Soviet bid of technical assistance with credits toward $400 million worth of equipment purchases.

API RAFFINERIA DI ANCONA SPA let contract to ABB Lummus Crest Inc.'s Dutch unit to study feasibility of and provide basic engineering for a thermal cracking heater at its 78,900 b/sd Falconara, Italy, refinery. Initial capacity will be 10,950 b/sd, expandable to 16,425 b/sd. Another Dutch affiliate, Lummus Heat Transfer Systems BV, is preparing thermal and basic mechanical design for the heater. The $2 million project is to be complete in March 1991.

LNG

SAIBU GAS CO. Fukuoka, Japan, signed a 20 year contract covering purchase of LNG from Malaysia LNG Bhd. beginning in October 1993 for use in northern Kyushu, Japan. Start-up volume will be 150,000 metric tons/year, peak volume 360,000 tons/year.

ACQUISITIONS

SASKATCHEWAN OIL & GAS CORP., Regina, Sask., completed a $38 million purchase of oil and gas assets from Gulf Canada Resources Ltd, Assets in the Battleford area include 21.7 million bbl of crude oil reserves, 45,000 acres of land, and a 25% interest in the Cactus Lake Pipeline. The purchase will increase Saskoil's pipeline interest to 50%.

PIPELINES

SOFREGAZ, engineering affiliate of Gaz de France, is about to complete the first stage of its contract to install a gas distribution network in 12 Bolivian towns. Initial investment in the first 5 years by eight local distribution companies already established or about to be set up will be $56 million. They plan to install 650 miles of polyethylene pipeline to serve about 120,000 customers.

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