OILSANDS
TAIWAN'S state owned Chinese Petroleum Co. (CPC) is a potential buyer for part of the 11.74% share of Syncrude Canada Ltd., Edmonton, put up for sale by Alberta. Murray Smith, Alberta minister of economic development and trade, said CPC is considering buying a 5% interest in the Syncrude oilsands operation at Fort McMurray, Alta. Murphy Oil Co., Calgary, a unit of Murphy Oil Corp., bought a 5% interest in Syncrude in 1 993 for $1 50 million (Canadian).
SOLV-EX CORP., Albuquerque, signed an agreement with Gibson Petroleum Co. Ltd., Calgary, under which Gibson will market heavy crude oil to be produced from Solv-Ex's oilsands lease near Fort McMurray. Solve-Ex and partners plan to produce about 14,000 b/d of heavy crude and 64,000 metric tons/year of alumina using a $100 million oil/alumina coproduction and upgrader plant (OGJ, June 26, p. 25).
PETROCHEMICALS
A HOUSTON JURY found Phillips Petroleum Co. negligent in a 1989 explosion at its Pasadena, Tex., petrochemical complex and awarded a total $362,000 to seven workers and their families. The blast killed 23 persons and spawned more than 1,000 lawsuits against Phillips.
COMPANIES
AMOCO CANADA PETROLEUM CO. LTD. offered to buy all common stock of Home Oil Co. Ltd., Calgary, in a deal valued at $757 million (Canadian). The offer is $16.50/share for about 45,863,000 shares outstanding.
OCCIDENTAL PETROLEUM CORP. tentatively agreed to settle for $275 million U.S. Department of Energy claims against OXY USA Inc., formerly Cities Service Co. The claims relate to Cities' purchases and sales of crude oil during October 1979-January 1981. DOE alleged violations of crude oil allocation and price rules in effect at that time.
GULF CANADA RESOURCES LTD., Calgary, completed a takeover of Mannville Oil and Gas Ltd. (OGJ, June 26, p. 25) and will turn Mannville into a private company. More than 93% of Mannville shareholders accepted Gulf's offer of $4.50 (Canadian)/share. Gulf will pay about $138 million for Mannville.
CONSOLIDATED NATURAL GAS CO. (CNG), Hydro-Quebec, and Noverco agreed to form a partnership to continue an alliance of packaged energy services the three started in November. Marketing units of the three companies have helped two CNG units provide services to electric utilities, independent power producers, and power consumers in the U.S. Northeast. Through May, the alliance's efforts resulted in its parents providing 640 million kw-hr of power and
7.9 bcf of gas to customers.
HIGH BIDDERS paid $5.55 million for the California assets of Nahama & Weagant Energy Co., Bakersfield, Calif., in a Chapter 11 bankruptcy auction in Fresno, Calif. Assets include more than 13 bcf of gas reserves, net production of 6 MMcfd, interest in Kern County's Round Mountain oil unit, and extensive exploration leasehold and seismic database. Nahama & Weagant at one time was the most active wildcatter in the Sacramento Valley gas province of northern California.
REFINING
FINA RESEARCH, Feluy, Belgium, let contract to Vinci Technologies, Liechtenstein, for an industrial pilot unit that will optimize Chevron International Oil Co.'s atmospheric resid desulfurization process. The unit, consisting of two fixed bed reactors, will process heavy feedstocks such as vacuum residues. Operating conditions will be 2,798 psi and 550 C. The $1 million unit is to be commissioned in October.
DRILLING-PRODUCTION
TOTAL'S further appraisal of Tunu gas field in East Kalimantan, Indonesia, boosted the field's estimated gas reserves by one third to almost 9 tcf. That will underpin a new development phase to begin in late 1997 and add 875 MMcfd of productive capacity. Plans call for debottlenecking to hike Tunu's deliverability to the Bontang liquefied natural gas export plant to 2.1 bcfd. That will provide 70% of the gas supply needed for Bontang's seventh and eighth liquefaction trains, due on stream at yearend 1997 or late 1998.
SAUDI ARAMCO let contract to Ralph M. Parsons, Pasadena, Calif., to prepare tenders for procurement, engineering, and construction contracts on the $2.5 billion Shayba oil field development in remote southern Saudi Arabia. Parsons will oversee construction of three gas/oil separators and a 600 km pipeline. Shayba, with reserves pegged at 3.5 billion bbl, is expected to start production within 10 years.
SUNWING ENERGY LTD., Calgary, signed a preliminary $25 million deal for joint development of an oil field in Northeast China. Under an agreement with Daqing Lianyi Petrochemical Complex, the partners are to drill more than 300 wells in an undisclosed field with estimated proved reserves of more than 45 million bbl of oil. Sproule Associates Ltd., Calgary, a consultant on the deal, said drilling will start this fall, subject to technical and economic studies this summer.
OVERSEAS PRIVATE
INVESTMENT CORP. (OPIC) approved as much as $201) million in political risk insurance for Enron Oil & Gas international Inc.'s participation in oil and gas development projects off Bombay. OPIC said Enron expects ultimate production of more than 140 million bbl of oil from developed and undeveloped fields in India's Bombay High area.
COMMAND PETROLEUM
(INDIA) PTY. LTD. arranged $40 million in project financing to fund its share of costs in developing Ravva oil and gas field off India. Command recently let a $113 million contract to Hyundai Heavy Industries Co. Ltd. for Ravva field facilities (OGJ, May 22, p. 31).
NORWAY'S Den norske stats oljeselskap AS signed a 1 0 year cooperation agreement with Transocean AS, Tananger, Norway, covering large parts of Statoil's requirement for future drilling services. The agreement involves four mobile drilling rigs and includes field development programs in the planning stage. The first drilling contract covers Norne field off Norway, where drilling is to begin in summer 1996.
VENEZUELA'S Lagoven SA plans to boost recovery of condensate by 21 million bbl from Orocual field in Monagas state with a gas lift project. it will inject 90 MMcfd of gas at 6,500 psi during the next 15 years, using reconfigured and rebuilt compressors from Lake Maracaibo operations. Capacity is 100 MMcfd Lagoven will convert two oil producers to injection wells and drill three production wells.
SMEDVIG AS, Stavanger, is negotiating with Danish firm Difko 44 to purchase a 50% interest in the West Alpha semisubmersible drilling rig for $41.5 million. Smedvig operates the rig under a management agreement following its 1988 acquisition of Dyvi AS. The rig is working for ARCO in Yacheng 13-1 gas field off China.
INTERNATIONAL PETROLEUM CORP. (IPC), Vancouver, B.C., signed a letter of intent to acquire 49% of Larmag Energy Assets Ltd. (LEA) from Larmag Energy NY (LENV), with an option to acquire another 11% of LEA after June 30, 1997. In addition, IPC will subscribe for new ordinary shares of LENV for $10 million. LEA is the sole foreign party in the Larmag-Chelelken joint venture covering Block 11 off Turkmenistan in the Caspian Sea. Block 11 holds Zhdanov and Lam fields and produces about 10,000 b/d of oil. Studies show the block could produce 86,000 b/d and 134 MMcfd of gas.
CALLON PETROLEUM CO., Natchez, Miss., agreed to buy all of Scott Paper Co.'s interests in 433,000 acres of oil and gas leases in the U.S. Southeast and all stock in Scott unit Escuhbia Oil Co. for $12 million. Included are working interests in Big Escambia Creek field in Escambia County, Ala., and 25 other oil and gas fields in Alabama. Most of the acreage is in the Smackover and Haynesville trends of Southeast Alabama.
NUEVO ENERGY CO., Houston, reclassified 8.8 million bbl of oil equivalent (BOE) from probable to proved reserves and added another 1.5 million BOE net after a favorable pressure response from a waterflood in North Frisco City Field-Wide Oil Unit in Monroe County, Ala. Current production is 5,700 b/d of crude oil, 1,190 b/d of natural gas liquids, and 7.1 MMcfd of gas.
GAS MARKETING
UNIVERSITY OF ILLINOIS prepaid $30 million to MidCon Gas Services Corp., Lombard, III., for more than 19 bcf of gas to be delivered during 10 years as firm sales of more than 5 MMcfd. The gas will be delivered mainly to the university's Champaign-Urbana campus, as well as its Chicago campus.
PIPELINES
COLUMBIA GULF TRANSMISSION CO. and Sabine Pipe Line Co., both of Houston, are seeking requests for firm and interruptible transportation services on expanded facilities connecting their gas pipeline systems at Henry Hub, Vermilion Parish, La. The expansion will increase capacity on the link by 100 MMcfd to a total of 340 MMcfd and allow bidirectional gas flows. Columbia Gulf is auctioning through Aug. 21 fir capacity service beginning Sept. 1 and will offer interruptible transportation services to the new facilities beginning Aug. 1. Sabine 1 offering through July 12 firm and interruptible capacity beginning Aug. 1.
FEDERAL ENERGY REGULATORY COMMISSION made extensive changes in its U.S. electronic bulletin board services, permitting the public to download more information about gas pipelines, their tariffs, and their storage facilities. Users are allowed 1 hr for each call to FERC's bulletin board.
UMIC COTE D'IVOIRE CORP. unit of United Meridian Corp., Houston, let contract to Global Offshore International Ltd. unit of Global Industries Ltd., Lafayette, La., to lay 11 miles of 14 in. pipeline off Cote d'Ivoire during August-October using the Cheyenne combination pipelay-derrick barge. The pipeline will transport production from Panthere and Lion fields to onshore receiving facilities.
MOBIL PRODUCING NIGERIA converted its Oso condensate pipeline to crude oil export service after a pipeline accident at its Qua lboe loading terminal off Nigeria halted tanker liftings of 330,000 b/d at the terminal until July 10. Repairs to the 42 in. pipeline were under way last week, although the nature of the accident, its cause, and extent of damage were not disclosed. Oso condensate production is not affected. Qua lboe crude exports reportedly were restored to 50% of levels seen prior to the accident.
NORSKE SHELL let a $2.4 million contract to Halliburton Energy Services for work on Troll Phase 1 wet gas pipelines in the Troll field area off Norway. Halliburton will complete, precommission, and commission two 36 in. pipelines and one 4 in. pipeline running 70 km from Troll A platform to Kollsnes terminal. The 36 in. lines will move the wet gas to shore for processing prior to export via Zeepipe and Europipe pipelines. Work is to begin in September and be complete in spring 1996.
ARCO PIPE LINE CO. let contract to Gulf Interstate Engineering Inc., Houston, for engineering design, project management, and procurement involving conversion to crude oil service of a 30 in. gas pipeline from Freeport, Tex., to Cushing, Okla. The Seaway Pipeline conversion, to be complete by first 1996, is a partnership of units of ARCO and Phillips Petroleum Co. It will have capacity of 800,000 b/d (OGJ, Feb. 20, p. 35).
CANADA'S National Energy Board approved two applications by Westcoast Energy Inc., Vancouver, B.C., to lay four loops on its gas pipeline system in British Columbia. Westcoast will add three loops of 42 in. line total rig 39.42 km and adding 88 MMcfd of capacity on its southern main line for $74.1 million (Canadian). It also will add a 22.1 km, 36 in. loop on its Fort Nelson main line, boosting capacity by 60 MMcfd to a total of 1.1 bcfd, at a cost of $33.2 million.
EXPLORATION
ASAMERA (CALIK) LTD., an Indonesian unit of Gulf Canada Resources Ltd., Calgary, signed a 30 year production sharing contract covering 128,482 acres next to its Corridor block, where production is now about 15,000 b/d. Seismic surveys are planned on the new acreage. Gulf now holds about 5.13 million acres in Indonesia under production sharing contracts.
BRITISH GAS PLC acquired a farmout covering a 35% interest in Chevron International Ltd. (Bolivia)'s 2.5 million acre Caipipendi exploration block in Bolivia. Chevron is completing negotiations with a third party to farm out another 25% interest. Chevron drilled a dry hole looking for oil in the northern part of the tract and is shifting its focus to gas exploration in light of proposed Bolivian gas pipelines to Brazil and Chile.
CHEVRON SULAWESI INC. signed a production sharing contract with Indonesia's Pertamina to explore for oil and gas on the Lariang block in western Sulawesi. Chevron previously held a 50% nonoperating interest in the Senkang Lariang block, which included the Lariang area. The new PSC grants Chevron a 100% working interest in the 1 million acre Lariang block under Indonesia's improved contract terms.
MOLDOVA'S parliament approved an exclusive oil and gas exploration and development concession for Redeco Ltd., Alexandria, Va. Terms for the 33,700 sq km block include a 10 year exploration license, with 20 year development licenses to be issued field by field, plus three shut-in fields. Redeco plans to begin drilling development wells this tall and exploration in 1996 that eventually will cover the entire country.
