INDUSTRY BRIEFS

Tankers

MCM joint venture of Mobil Oil Canada Properties, Chevron Canada Resources, and Murphy Atlantic Offshore Oil Co., said the keel has been laid on Kometic, the first shuttle oil tanker for use with the Hibernia oil field project off Newfoundland. The vessel, being built at Samsung Heavy Industries Co. Ltd.'s shipyard at Koje, South Korea, is scheduled for July 1997 completion and delivery to Newfoundland for October 1997 sea trials. Hibernia is scheduled to begin production late in 1997. First loading is scheduled early in 1998. The 127,000 dwt Kometik, double-hulled and ice-strengthened, will have a capacity of 850,000 bbl of crude.

Gas processing

Morrison Petroleum Ltd., Calgary, bought the Nevis gas processing plant and related facilities from Canadian Gas Gathering Systems Inc. for $120 million (Canadian). The plant, east of Red Deer, Alta., currently processes about 125 MMcfd of sour and sweet gas into residue gas, propane, butane, condensate, and sulfur.

Pipelines

Norway's Den norske stats oljeselskap AS (Statoil) let contracts totaling more than $150 million for its NorFra gas trunkline from Sleipner field off Norway to Dunkirk, France (OGJ, Aug. 28, 1995, p. 67). Among the new contracts, Belgium's Jan de Nul BV will perform dredging and back-filling; European Marine Contractors Ltd. (EMC), London, and HAM Contractors BV, Rotterdam, will trench the pipeline after laying; and EMC will lay pipe in the landfall zone.

TransCanada PipeLines Ltd., Calgary, will distribute a $57 million refund by crediting customers on its Canadian main line with firm service and storage transportation service contracts. The refund resulted from the reversal of a decision by the Federal Energy Regulatory Commission on the toll method used to fund expansions on the Great Lakes pipeline system. FERC originally ordered costs to be paid incrementally by TransCanada and other new customers, rather than by both new and existing customers on a rolled-in basis. Trans Canada appealed the ruling and won.

Tenneco Energy, Houston, and National Gas Fuel Supply Corp., Buffalo, will form a 50-50 partnership to develop a $200 million Green Canyon Gathering System. The partners will build, own, and operate a 24-in., 153-mile offshore pipeline from the Green Canyon, Ewing Bank, Mississippi Canyon, Ship Shoal, Grand Isle, and South Timbalier areas of the Gulf of Mexico. The pipeline will have capacity of about 515 MMcfd and access to 3.4 tcf of estimated reserves. It also will provide access to five onshore pipelines in South Louisiana: Tennessee, Columbia Gulf, Koch Gateway, Louisiana Intrastate, and Bridgeline.

Transcontinental Gas Pipe Line Corp., Houston, is holding an open season Nov. 15-Dec. 16 for nominations from shippers seeking firm capacity on the proposed extension to its 123-mile Mobile Bay lateral (OGJ, Sept. 9, p. 38). Transco filed last week with FERC for approval of the planned 30-in., 77-mile, 600 MMcfd capacity extension. It estimates the project cost at $171.5 million and seeks permission from FERC to roll in costs to existing transportation rates.

Westcoast Energy Inc., Vancouver, B.C., applied to Canada's National Energy Board for a 25% hike in 1997 tolls on its gas pipeline system due in part to contract cancellations by some shippers. In October, 19 shippers said they would not renew part of their firm contracts, involving about 12% of pipeline volume. Westcoast moves gas in British Columbia and to export points for U.S. markets. Westcoast said increases in depreciation rates and other cost-of-service increases result in revenue requirements about 12% higher in 1997 than in 1996. Westcoast is willing to negotiate a toll method tied to gas price to share producer risk.

PanEnergy Corp. unit Pan Energy Field Services Inc. acquired a 300-mile natural gas gathering system in South Texas from Citrus Corp. unit Citrus Energy Services Inc., jointly owned by an Enron Corp. unit and Sonat Inc. The system includes 94 miles of 12-in. pipeline and various length and diameter laterals. From Hidalgo County, Tex., the system extends through Brooks, Kenedy, Kleberg, Nueces, Jim Wells, and Starr counties. Separately, PanEnergy Field Services, through its PanEnergy Louisiana Intrastate Co. unit, completed acquisition of Transok Inc.'s North Louisiana System, totaling about 500 miles. Transok is a unit of Tejas Gas Corp.

Petroleo Brasileiro SA let a $68 million, 4-year contract to Stolt Comex Seaway SA, Aberdeen, for diving and remotely operated vehicle (ROV) support services. Beginning May 1997, Seaway Harrier will be deployed in the Campos basin off Brazil to perform installation, repair, and maintenance work and pipeline tie-ins for Petrobras. The contract calls for diving to 315 m and operation of ROVs to 1,500 m of water. The contractor's Seaway Osprey reelship is already in the field laying flexible flowlines and bundles in 450 m of water.

Companies

Unocal Corp. signed agreements with Uzbekistan to assess feasibility of a new pipeline system and evaluate oil and gas resources in that country. Unocal will study existing pipelines that could be used as part of a gathering system for the Central Asia Oil Pipeline (CAOP), a system proposed by Unocal to link Central Asian oil producers to a new deepwater port on Pakistan's coast. Unocal also will estimate future oil and condensate production and potential export volumes for CAOP. The second accord calls for a joint study with the national oil company Uzbekneftegaz on potential new exploration areas. Saudi Arabia's Delta Oil Co., Unocal's coventurer in the projects, also signed the agreements.

Enron Corp., Houston, and Portland General Corp., Portland, Ore., received approval from a majority of shareholders of both companies for their planned merger (OGJ, July 29, Newsletter). Completion of the merger still hinges on approvals from regulators, including the Federal Energy Regulatory Commission and the Oregon Public Utilities Commission.

Exploration

Unocal Corp. unit Unocal Thailand Ltd. discovered a gas field with its 1 Plamuk wildcat in the Gulf of Thailand north-northwest of Surat A platform and plans further work in 1997 to confirm Plamuk size and a development schedule. Test results were not disclosed. Unocal's exploration program of 11 successful wells, including 1 Plamuk, also confirmed extensions to Satun, Platong, and Baanpot fields; proved commerciality of Pladang field; and delineated Trat field (see OGJ, Nov. 18, Newsletter). Unocal said the wells, averaging more than 200 ft of gas and condensate pay, should increase its gross Gulf of Thailand reserves by more than 300 bcf from 10 new platform locations.

Sonat Exploration Co. is drilling 4 Blazek, its fourth Cotton Valley Pinnacle Reef test, after completing 1 Blanton in the Bear Grass area of Freestone County, Tex. The well, which flowed on test at a rate of 40.2 MMcfd of gas from intervals at 14,166-14,686 ft at 5,250 psi flowing wellhead pressure, is being connected to a pipeline for sales to Delhi Gas Pipeline Corp. Sonat is operator with a 100% working interest. It has about a 60% net interest in about 240,000 gross acres in the trend and holds operating rights on most of the acreage. To the south, it will drill two Pinnacle Reef prospects in a joint venture with Amoco Production Co. First of two wells will be spudded in January 1997.

Minerals Management Service received its first exploration plan for the Beaufort Sea Sale 144 area. BP Exploration (Alaska) Inc. proposes to drill a single wildcat during the 1996-97 drilling season from the remaining portion of the Tern artificial ice island built by Shell Oil Co. in 1982, as well as from an associated grounded-spray ice pad. Only four companies took part in the sale, submitting 31 bids in the 1,364-block offering. BP was the top bidder (OGJ, Sept. 23, p. 36).

Carigali-Triton Operating Co. (CTOC) discovered a fourth gas field, Bumi, on Block A-18 in the Malaysia-Thailand Joint Development Area in the Gulf of Thailand. In tests covering about 37% of net total pay, 1 Bumi flowed from four intervals at a combined rate of 51 MMcfd of gas and 295 b/d of condensate through 1/2-2 in. chokes with flowing tubing pressure of 188-1,955 psi. The well was drilled in about 184 ft of water to TD of 9,279 ft. CTOC's 2 Bulan appraisal well, also on Block A-18, flowed on test from two intervals at a combined rate of 30 MMcf/d of gas and 185 b/d of condensate through 1/4-3/4 in. chokes with flowing tubing pressure of 808 psi. CTOC is jointly owned by Triton Energy Ltd., Dallas, and, Malaysia's Petronas Carigali Sdn. Bhd.

Trinidad and Tobago awarded a production-sharing contract for the 400 sq km Block S11(c) off Trinidad's southern coast to operator Elf Exploration Trinidad, Amoco Trinidad, and Repsol Exploration Trinidad. The first 3-year commitment is for 250 sq km of 3D seismic and one wildcat. Elf has a 30% stake in Block 2(c) off Trinidad; operator BHP Petroleum (Trinidad) Inc., a unit of Australia's Broken Hill Pty. Co. Ltd. holds 70% (OGJ, May 20, p. 40).

IEOC Co. Inc., Houston, a unit of Agip SpA, disclosed a third discovery on the Abu Madi West Development lease about 2 miles off Egypt in the Mediterranean Sea. The 9 Nidco wildcat found gas and condensate in Messinian Abu Madi. It cut a 102-ft gas column with a net pay of 92 ft at a depth of 11,155 ft. The well will be tested at completion. Interests are operator IEOC 50% and Marathon Petroleum Nile Delta Ltd. and Amoco Egypt Gas Co. each 25%.

Anadarko Petroleum Corp., Houston, plugged and abandoned 1 Monazite subsalt discovery, drilled to 18,000 ft measured depth on Vermilion Area South Addition Block 375 in the Gulf of Mexico, because of wellbore problems during testing, including extensive sanding (OGJ, Apr. 1, p. 43). Logs, core analyses, and production tests confirmed multiple hydrocarbon-bearing sands, but Anadarko said future appraisal drilling will be necessary to determine commerciality. New seismic data are being obtained. Interests are operator Anadarko, Phillips Petroleum Co., and Broken Hill Petroleum Pty. Ltd. 33.33% each.

Armenia's Energy Ministry negotiated a petroleum agreement with southern California firm Armenian American Exploration Co. to explore a 12,700 sq km contract area in western Armenia. The pact provides for a minimum work commitment of $10 million during the first 5-year period of the agreement, seismic acquisition, and drilling three wells.

OMV AG disclosed three oil and gas discoveries in the Vienna basin, north of Vienna: 1 Spannberg South, 6 Ebenthal, and 3 Bernhardstahl South. Test results were not disclosed. It plans two more exploratory wells in Austria by yearend and six in 1997. The 1 Spannberg South tapped 30 m of gas-bearing sandstone; 6 Ebenthal hit a 12 m sandstone gas layer; and 3 Bernhardstahl South was an oil discovery. The company attributed well successes to use of 3D seismic.

Shell Offshore Inc. let contract to PGS Exploration (U.S.) Inc., a unit of Petroleum Geo-Services ASA, for a high-resolution, 3D seismic survey covering 20 deepwater blocks in the Mississippi Canyon area of the Gulf of Mexico. PGS' Ramform Explorer will conduct the survey along with the Edison Chouest and Gary Chouest. The vessels will record a total of 16 CMP lines/traverse with a dense line spacing, 8,000 m offset, and long record.

Chevron Corp. unit Chevron Petroleum Technology Co. (Cptc) awarded a commercial license to Halliburton Co. unit Landmark Graphics Corp., Houston, to incorporate Cptc's proprietary seismic data compression technology into Landmark's data processing and interpretation systems. Cptc's software program is capable of compressing 3D marine seismic datasets to less than 1% of their original size. Cptc claims industry-wide distribution will spur development of an industry standard and create an environment for data exchange at minimum cost.

Petrochemicals

Oman selected British Petroleum Co. plc as a partner in a $900 million olefins complex at Sohar, Oman, said Oman's Minister of Trade and Industry. The complex will have a 450,000 metric ton/year ethylene cracker and a polyethylene plant. It will use gas from fields in central Oman. Construction is to begin next year, with start-up in 2000.

Terminals

Sprague Energy, Portsmouth, N.H., a unit of Axel Johnson Inc., Stamford, Conn., increased to 15 the number of distillate fuels and gasoline terminals it owns in the U.S. Northeast. In two acquisitions, it increased its total distillate fuels and gasoline storage capacity to about 1.4 million bbl at its existing 300,000 bbl Portland, Me., complex. Latest deal involved purchase of 340,000 bbl of storage capacity, together with 55 acres, a 36-ft deepwater dock, and various buildings at the site. Separately, Sprague purchased from BP Oil an additional 9 acres of land and tankage with 650,000 bbl capacity at the site.

Drilling-production

TransTexas Gas Corp., Houston, soon will start production from its 2 Laura Lopez discovery, drilled to 14,746 ft in the new Fandango South gas field, southeast of Fandango gas field in Jim Hogg County, Tex. The well will be completed in a 35-ft net pay zone in Wilcox Travis Ward at 13,596-13,640 ft. It had not been tested by presstime. TransTexas is drilling 3 Laura Lopez delineation currently. A 19-mile, 30-in., 600 MMcfd capacity lateral pipeline under construction will move Fandango South production to a 30-in. TransTexas mainline and on to its Agua Dulce marketing hub.

Power

Exxon Energy Ltd. and China Energy Investment Co. Ltd. signed a memorandum of understanding to develop a 1,050-MW gas-fired power plant at Shenzhen, China. The project will consist of three 350-MW combined-cycle gas turbines and is slated for completion by yearend 1999. The Exxon and China Energy units will hold a combined 35% interest. Other interest holders are China state-owned firms Shenzen Qiawan Electric Power Development Co. Ltd. and Guangdong Electric Power Holding Co. with a combined 36% stake, and Kanamatsu Power (South China) Co., with a 29% interest.