More Oil & Gas Drilling and Production News

OMAN TO STEP UP LEKHWAIR FIELD PRODUCTION

May 14, 1990 Petroleum Development Oman has approved a $500 million waterflood to turn Lekhwair field into one of Oman's biggest oil and gas producers. The project will boost production to a little more than 100,000 b/d by 1994 from the current 24,000 b/d for the field in Northwest Oman (see map, OGJ, May 11, 1989, p. 34). The field is linked by pipeline to the transportation system for oil from central and southern Oman but will require a new pipeline to handle gas shipments. PDO is 60% owned by the

OGJ NEWSLETTER

May 14, 1990 Omega Aker Offshore Inc. is conducting a study for Marathon Oil Co. that could lead to installation of the Gulf of Mexico's first floating production, storage, and offloading (FPSO) system based on a tanker-perhaps with an onboard methanol plant. The study by the partnership of Omega Marine Group, Houston, and Aker Engineering AS, Oslo, covers tanker size, process plant preliminary design, mooring evaluation, and cost and development of a performance specification.

ENVIRONMENT, IMPROVING OIL MARKET CLIMATE HIGHLIGHT 1990 OTC MEETING

May 14, 1990 Heightened concern over the environment vied with renewed market optimism to take center stage at this year's Offshore Technology Conference in Houston last week. Convincing the public that the petroleum industry wants to and can protect the offshore environment will require major commitments of funds and willpower. That was the message of representatives from industry, government, and the environmental community speaking at the first of two OTC keynote sessions. Optimism about increased

U.S. BRIEFS

May 14, 1990 BROWN & ROOT U.S.A. INC. finished installing underground civil and foundation packages for two 35,000 kw cogeneration units it is building for Oklahoma Gas & Electric Co. at Conoco Inc.'s Ponca City, Okla., refinery. The plants will supply electricity to OG&E and process steam to Conoco. HADSON CORP., Oklahoma City, reached an amended power sales contract with Niagara Mohawk Power Corp. for a 79,000 kw gas fired cogeneration project in Rensselaer, N.Y. TEXAS EASTERN

HISTORICAL, STRATIGRAPHIC REVIEW OF OIL DEVELOPMENT IN N. DAKOTA

May 14, 1990 Kelly Carlson North Dakota Geological Survey Bismarck, N.D.

BUDA STRIKES MAY BOOST SOUTH TEXAS ACTION

May 14, 1990 G. Alan Petzet Senior Staff Writer Cretaceous Buda limestone oil production has been established in an area of South Texas that could give further impetus to the already hot Austin chalk horizontal drilling play. Two wells almost 1 1/2 miles apart in Frio County, Tex., along the Atascosa County line have begun producing oil at high rates from Buda. The wells appear to be zone discoveries in the same fault block in Pruitt (upper Cretaceous Navarro) field, about 15 miles east of Pearsall, Tex.

PROCEDURE REDUCES PROBLEMS AND COSTS OF CHEMICALS IN GAS SYSTEMS

May 14, 1990 Yulin Wu Phillips Petroleum Co. Bartlesville, Okla. Efforts to evaluate problems associated with chemicals used in natural gas and NGL transportation and processing have lowered costs for one segment of an NGL system operated in Texas by Phillips Petroleum Co., Bartlesville, Okla. Phillips' procedure consisted of two steps: Scientifically evaluating chemicals and the problems they generate Following experience and expertise in selecting chemicals and solving problems. If experience and

OGJ NEWSLETTER

May 21, 1990 The role of two Soviet companies in the group awarded exploration rights covering the jointly administered zone between North and South Yemen is in doubt. Machinoimport and Zarughgeologia planned to meet their contributions to the Hunt-Exxon, Total-CFP, and Kuwait Foreign Petroleum Exploration Co. group with equipment and services. The non-Soviet partners don't like the quality of this equipment, and the Soviet companies have reportedly hit problems finding a cash alternative, leaving the

INTERNATIONAL BRIEFS

May 28, 1990 CHINA'S biggest foreign funded refinery is under construction in Hainan province. The $530 million, 115,000 b/d plant at Haikou, funded solely by U.K. company Haikou (Ko Fung) Comprehensive Refinery Co. Ltd., is to be complete in 1992. Feedstock will be Middle East crudes, with products earmarked for export to Europe, China's Xinhua News Agency reported.

ARIZONA'S COCONINO PLATEAU SEEKS WILDCATS

May 28, 1990 Edgar B. Heylmun Tucson The Coconino plateau of Arizona lies south of the Grand Canyon at an average elevation of about 6,000 ft above sea level and includes more than 2 million acres of rangeland. In this entire expanse, only four tests have been drilled for oil and gas, and of these, three had shows of oil or gas, and the other was a shallow, inadequate test (Fig. 1).

CHEVRON: ENVIRONMENT SHAPES OIL, GAS FUTURE

May 28, 1990 Concern for the environment will determine the future of oil and gas markets. There are likely to be ample resources of both fuels-as well as coal, their chief competitor-available at a reasonable cost this decade. How best to use these resources for efficient economic growth and still protect and improve the environment is the top energy issue for the 1990s. That is the theme underlying Chevron Corp.'s latest world energy outlook. Chevron noted that overall energy consumption will rise in

DEALS STRUCK ON SEVERAL OFFSHORE RIGS

May 28, 1990 While one U.S. company is preparing to build as many as six offshore drilling rigs, another plans to operate two rigs in the North Sea. Capital Maritime Corp., Greenwich, Conn., let a contract to Allison-McDermid, Brownsville, Tex., to build three jack ups with options for three more. In addition, Sonat Offshore Drilling Inc., Houston, and Arcade Shipping AS, Oslo, agreed to form a Norwegian offshore drilling company, Arcade Drilling AS.

HIGHER SEVERITY HYDROCONVERSION HIKES DIESEL AND DISTILLATE YIELDS AT VALERO

May 28, 1990 John F. Hohnholt Valero Refining Co. Houston Woodrow K. Shiflett Arthur J. Suchanek Criterion Catalyst Co. LP Houston Increasing the operating severity of the atmospheric resid hydrodesulfurization (Arhds) unit at Valero Refining Co.'s Corpus Christi, Tex., refinery boosted yields of diesel and distillate products. After an initial run of two cycles on the original process licensed catalyst, catalysts and operating conditions were changed, resulting in a subsequent 30-month run.

DESIGN BASIS DEVELOPED FOR H2 PIPELINE

May 28, 1990 M. Mohitpour Novacorp International Consulting Inc. C.L. Pierce Novalta Resources Inc. Calgary Peter Graham Novacor Chemicals Ltd. Joffre, Alta. In lieu of uniform codes or standards for hydrogen-gas pipeline design and construction, Novacorp International Consulting Inc., Calgary, developed a design basis and used it in the design, engineering, and construction of a hydrogen-gas cross-country pipeline. The pipeline joined the Alberta Gas Ethylene Co. Ltd. hydrogen purification plant to the

OGJ GROUP'S RESERVES STABLE IN '89 BUT LIQUIDS PRODUCTION, DRILLING DIVE

May 28, 1990 Robert J. Beck Economics Editor Joan Biggs OGJ Energy Database The Oil & Gas Journal group of 22 large U.S. oil and gas companies produced more gas, less oil and natural gas liquids, and drilled 22.7% fewer net wells in 1989 than in 1988, analysis of their annual reports shows. The group's world gas reserves were slightly higher at yearend 1989 and world liquids reserves slightly lower than at the end of 1988. The group's crude runs to stills were up a combined 0.9% from the 1988

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Refinery Units and Equipment for Sale (PA). Pictured: LSG: Gasoline Desulfurizer, 65,000 BPD.

Refinery Units and Equipment for Sale (PA)

Refinery Units and Equipment for Sale (PA). Pictured: LSG: Gasoline Desulfurizer, 65,000 BPD.

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