More Oil & Gas Processing News

OFFSHORE AREA BOOSTS WYTCH FARM RESERVES

Feb 19, 1990 BP Exploration has confirmed a 100 million bbl offshore extension of Wytch Farm oil field on the south coast of England. The offshore extension of western Europe's largest onshore reservoir boosts Wytch Farm reserves to about 300 million bbl. Options to develop the added reserves have been proposed, and BP now has the task of winning approval for the project in an environmentally sensitive area. BP is in the final stages of a major expansion of the onshore portion of the field, about 20

PERU'S PRODUCTION, EXPLORATION REBOUNDING

Feb 19, 1990 Peru's oil production is rebounding as state owned Petroperu continues struggling to meet its financial obligations. Occidental Petroleum Corp. boosted oil production on its northern jungle block to 58,000 b/d late last month after resuming field maintenance amid renewed negotiations with Petroperu. Oxy's jungle production had fallen sharply twice in second half 1989 after it halted work on the block because of missed contract payments for delivered oil.

KERN RIVER CONTRACTS ASSURE LINE'S FINANCING

Feb 19, 1990 Kern River Gas Transmission Co. has signed firm transportation contracts covering 150 MMcfd of Canadian gas, pushing its total above the minimum volume required to finance its proposed Wyoming to California pipeline. California Public Utilities Commission (CPUC) earlier this month issued a decision laying down conditions for construction of out of state pipelines to move as much as 2.1 bcfd of gas into California. It chose to let market forces determine which of the competing pipeline projects

OGJ NEWSLETTER

Feb 19, 1990 The oil spill off California should have no bearing on whether to hold offshore lease sales, says President George Bush (see story, p. 30). He has read a task force's report on controversial California and Florida lease sales and should decide "fairly soon" on their future. Bush said, "The tanker had a hole punched in it, and I see a bunch of guys jumping up and down saying this proves you can't have any offshore drilling...I'm not sure I understand the connection (with) tankers.

WATCHING WASHINGTON WETLANDS POLICY

Feb 19, 1990 With Patrick Crow The Environmental Protection Agency and Corps of Engineers have forged a wetlands preservation policy that signals there are realistic limits to President Bush's dedication to the environment. When Bush entered the White House, amid his baggage of campaign pledges was one declaring there would be "no net loss" of wetlands. Wetlands are the water-bogged marshes and swamps that are of little use to humans but are important wildlife habitats. Environmentalists say development

ETHANOL, ETBE SUBSIDY EXTENSIONS DISPUTED

Feb 19, 1990 The House Ways and Means Committee has been urged to extend tax incentives for ethanol production and expand them to an ethanol-based octane enhancer. Most of a hearing on ethanol centered on whether Internal Revenue Service should extend the credit to the octane enhancer ethyl tertiary butyl ether (ETBE). Currently, gasohol containing at least 10% alcohol is taxed at 31/3/gal vs. 9/gal for gasoline. There is a similar reduction for diesel and other fuels with alcohol.

1990 CANADIAN OUTLAYS TO SHOW INCREASE

Feb 19, 1990 Canadian spending for capital and exploration items will ease out of the doldrums this year. Total outlays will amount to $8.44 billion, an increase of 7.6% from 1989 spending. Upstream spending will rise 7% to $4.96 billion, while downstream outlays will climb 8.4% to $3.48 billion. Canadian spending fell 8.1% to $7.85 billion last year. Exploration and production spending fell 20.9% to $4.64 billion, and downstream spending moved up 20% to $3.2 billion.

INTERNATIONAL BRIEFS

Feb 19, 1990 IMPERIAL OIL LTD. received final regulatory approval for its $4.9 billion takeover of Texaco Canada Inc., 1 year after the companies announced a deal. Approval came from Ottawa's Competition Tribunal after Imperial agreed to meet tribunal requirements for sale of Texaco properties (OGJ, Feb. 12, p ' 26), Imperial will sell 638 service stations and provide gasoline supply guarantees to independent retailers in Ontario and Quebec to ensure competition.

REFINERS LIST BETTER TIMES IN FRANCE

Feb 19, 1990 Restructuring of the French refining industry is almost complete. Thirteen refineries, down from 22 in 1980, are working at 88% of their 1.82 million b/d capacity, up from 83% at yearend 1988. French refining got a boost last year from a 3.5% increase in domestic oil consumption to 1.6 million b/d, the highest level since 1983. The boost came from increased motor fuel consumption, especially diesel.

BRITTLE FRACTURE OF OLD STORAGE TANKS CAN BE PREVENTED

Feb 19, 1990 Johannes de Wit The Hague Brittle fracture of older storage tanks, that can lead to catastrophic spills of hydrocarbon materials, can be reduced by applying preventive measures based on good knowledge of the critical properties of the tanks, and the critical conditions in which the tanks are used. Some preventive measures include: insulating the tank, not filling the tank to maximum level during lowest temperatures, fully water-testing the tank, repairing serious corrosion, releveling the tank,

TAIWANESE, CHINESE TREATMENT FACILITIES INSTALLED

Feb 19, 1990 Water treatment facilities from a U.S. company have been installed in a major Taiwanese refinery and in two mainland Chinese oil fields. Chinese Petroleum Corp. recently installed a wastewater treatment plant at its Kaohsiung, Taiwan, refinery. The treatment plant was needed because of expansion of the refinery's naphtha-cracking facilities at the 446,500-b/d refinery, the largest refinery, in terms of crude charging capacity, in the Asia/Pacific region.

WATCHING THE WORLD SPAIN'S DOWNSTREAM ADJUSTMENT

Feb 19, 1990 With Roger Vielvoye from London Creation of a single market in Europe is not likely to cause many significant changes in most of the European petroleum market. The one exception is Spain, where for almost 60 years the state distribution and marketing industry enjoyed a lucrative monopoly and the mixed state and privately owned refining sector operated without competition from foreign companies.

INTEGRATED PETROLEUM EXPLORATION PROGRAM EP-20 UNDER WAY IN AUSTRALIA'S N.T. AMADEUS BASIN

Feb 19, 1990 Donald F. Saunders, C. Keith Thompson Recon Exploration (Australia) Pty. Ltd. Glenelg, S. Australia EP-20 is located in the east-central portion of the Amadeus basin. Petroleum in the basin has been found mainly in structural fold-related traps within Late Proterozoic to Late Ordovician marine to marginal-marine clastic and evaporate sequences.

HORIZONTAL DRILLING SCORES MORE SUCCESSES

Feb 26, 1990 Guntis Moritis Drilling/Production Editor The Journal's second exclusive compilation of horizontal drilling projects under scores that this technology is receiving worldwide acceptance, and the number of wells drilled continues to accelerate rapidly. The following pages document many of the wells drilled in 1989 and the 1990 plans of operating companies.

INTERNATIONAL BRIEFS

Feb 26, 1990 U.S. EXPORT-IMPORT BANK approved a $13.2 million loan to Algeria's Sonatrach to help refurbish its Arzew liquefied natural gas plant, which is operating at only 60% of capacity (OGJ, Feb. 19, p. 34). Sonatrach will use the money to pay for engineering services from M.W. Kellogg, Houston, turbine parts from General Electric, and turbo-compressor parts from Elliot Turbo Machinery and Turbodyne.
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