INTERNATIONAL BRIEFS

COMPANIES

PETROMARINE ITALIA SPA, Italian subsidiary of Denison Mines Ltd., Toronto, defaulted on its loans from Mediobanca-Banca di Credito Finanziario SpA by failing to make a scheduled $8.2 million (Canadian) payment June 25. Continuing production problems at its Vega field off Italy forced Denison to provide funds to Petromarine for debt service payments. Denison provided a guarantee for the loans, which total $26 million, and is considering restructuring all of its $31.1 million loans.

GAS PROCESSING

ENRON GAS PROCESSING (U.K.) LTD. let a 225 million contract to Costain Engineering Ltd. of the U.K. for design, supply, and construction of a gas processing plant at Seal Sands on Teesside, England. The plant will process 400 MMcfd of gas from the Central North Sea area transmission system.

ALGERIA'S Sonatrach let contract to Italy's Snamprogetti SpA for construction of a gas processing plant in Hamra field in South Algeria. Cost and capacity of the plant were not disclosed. Construction is expected to take 40 months. Sonatrach estimates Hamra development will cost a total of about $5 billion, with expected production of 175 bcf/year.

DRILLING-PRODUCTION

INDIA will receive a $450 million loan from World Bank to eliminate flaring in Bombay High oil field, which will increase India's production by 81,000 b/d. Bombay High flaring carbonizes about 424 MMcfd of associated gas. Reduced flaring also will reduce India's imports of naphtha, saving the country about $350 million in foreign exchange. Plans include construction of process platforms, modifying platforms, construction of gas pipelines, and expansion of the Hazira gas terminal.

RANGER OIL LTD. Calgary, appraisal well 23/27-8 on North Sea Block 23/27 flowed a maximum rate of 6,200 b/d of 38, gravity oil. Ranger plans to deviate the hole to further evaluate the reservoir. More appraisal drilling is planned. Ranger holds a 20% interest in the block with partners Lasmo North Sea plc 36.25%, Enterprise Oil plc 40%, and Peko Exploration (U.K.) Ltd. 3.75%.

READING & BATES CORP., Houston, acquired about 25% of the outstanding stock of Arcade Shipping AS of Norway. Arcade Shipping in turn holds about 46% of the outstanding stock of Arcade Drilling AS, owner of two fourth generation semisubmersible drilling rigs operating in the North Sea.

SANTA FE ENERGY RESOURCES, Houston, participated in a $107.6 million purchase of interests in El Tordillo oil field in the San Jorge basin of Southeast Argentina. Field production is about 15,000 b/d. Santa Fe will hold a 10% interest and will provide technical and managerial assistance in the field's operations through its Petrolera Santa Fe SA subsidiary. Partners in the purchase are Tecpetrol 23.75%, Banco Rio de la Plata SA 10%, Energy Development Corp. 6.25%, with the Argentine government owned YFP holding the remaining 50%.

PETROCHEMICALS

TWO GERMAN FIRMS, Ferrostaal AG and Metailgesellschaft (MG), along with Colonial Life Insurance Co. (Clico) will be partners in Trinidad and Tobago's second methanol plant, to be built at Point Lisas (OGJ, Apr. 15, p. 69). The $200 million, 500,000 metric ton/year plant is to be on line by mid-1993 with partial financing by Kreditanstalt Fur Weideraufbau of Germany. Clico will hold a 64.9% interest in Caribbean Methanol Co., Ferrostaal 25.1%, and MG 10%.

LNG

CHUBU ELECTRIC POWER CO., Nagoya, Japan, signed a contract with Malaysia's Petroleum Nasional Bhd. to import about 230,000 metric tons of liquefied natural gas produced in Sarawak. Imports are to begin this month on a spot basis and continue through February 1993. Chubu originally planned to import 5.49 million tons of LNG from Indonesia and Australia in 1991 but added Malaysia because of a sharp growth in demand.

EXPLORATION

ELF AQUITAINE SYRIA'S 101 Jafra discovery on Deir ez Zor permit at Jafra, Syria, flowed 9,400 b/d of 34' gravity oil through a 1 in. choke. Elf is operator with 100% interest.

LASMO OIL (AUSTRALIA) LID.'S 1 Leatherback wildcat in the Carnarvon basin off the northwest coast of Australia flowed as much as 2,377 b/d of 41 gravity oil through a variable choke from a 4 ft interval below 5,746 ft in Triassic Mungaroo. Testing established a gas:oil ratio 160:1. Cores and logs Indicate a 22 ft oil column. Industry partners are Hadson Energy Resources Corp., Conoco Australia Ltd., and Asamera Australia Ltd.

BRITISH COLUMBIA'S government approved drilling of the first well in a planned three well program in the environmentally sensitive Fraser Valley east of Vancouver, B.C., by Conoco Canada Ltd., B.C. Gas Inc., and Dynamic Oil Ltd. The target is gas. B.C. Energy Minister Jack Weisgerber said drilling conditions and supervision will be stringent for the group known as the Fraser Valley Gas Project.

PIPELINES

NORSK HYDRO AS let engineering, procurement, construction, and installation contracts to European Marine Contractors Ltd. of the U.K. and Stoit-Nielsen Seaway AS of Norway for development of Brage oil field in the Norwegian North Sea, European Marine will lay a 13 km, 12 in. oil pipeline from Brage platform to Oseberg field and a 6 1/2 km 8 in. gas pipeline from Brage to a connection with the Statpipe gas pipeline. Stoit-Nielsen's contract is for subsea oil and gas pipeline tie-in installation, including a 60 ton underwater valve station. Brage field production is to begin in January 1994.

REFINING

GOVERNMENT OF DUBAI plans a refinery at Jebel, forming Jebel Ali Refinery Corp. to own, operate, and run the refinery, as well as trade and manufacture petroleum products. The government owned company will have the right to open branches in and out of the emirate. It will be represented by a board of directors and will be exempt from all customs duties on imports, purchases, and other operating materials.

ACQUISITIONS

BROKEN HILL PTY. CO. LTD.'S BHP Holdings (USA) Ltd. completed the acquisition of Hamilton Oil Corp., Denver (OGJ, Apr. 22, p. 48).

OILSANDS

ALBERTA GOVERNMENT approved new oilsands development rules that extend the time allowed for lessees to develop properties. Many current leases expire in about 2000, but additional 10-15 year terms will be granted if companies file detailed development plans. Development plans will require construction deadlines and production goals for leases.