INDUSTRY BRIEFS

EXPLORATION

UMC EQUATORIAL GUINEA CORP., a unit of United Meridian Corp., Houston, agreed to farm out a 40% interest in a production sharing contract covering 438,000 acre Block A off Equatorial Guinea. Yukong Ltd., Seoul, is to earn a 15% interest and Sunkyong Ltd., Seoul, and an undisclosed company 12.5% each by participating in the 1 Dorado wildcat to be drilled to 9,000 ft on the tract beginning in third quarter.

GLOBEX FAR EAST, a unit of Global Exploration LLC, Dallas, is part of a group awarded a geophysical survey and exploration contract in the Ragay Gulf off southern Luzon Island, Philippines. Globex will serve as operator with a 34.2% working interest on the 434,000 acre tract.

UNION TEXAS MAGHREB INC., a unit of Union Texas Petroleum Holdings Inc., Houston, bought an interest in Southeast Tunisia's Jeffara exploration permit from Energy Development Corp. unit Brabant Petroleum Ltd. As operator, Union Texas expects to start drilling a wildcat on the 3,932 sq km block by yearend.

PETROCHEMICALS

PHILLIPS SUMIKA POLYPROPYLENE CO. (PSPC) plans an October construction start on a 270 million lb/year gas phase polypropylene plant at Phillips Petroleum Co.'s Houston chemical complex. Production is scheduled to start by mid-1996. PSPC is a partnership of Phillips and Sumitomo Chemical Co. unit Sumika Polymers America Corp.

PHILLIPS PETROLEUM approved funding to increase paraxylene capacity at subsidiary Phillips Puerto Rico Core Inc.'s Guayama, P.R., plant to 818 million lb/year from 675 million lb/year by late 1995. It will reach the goal mainly by replacement of adsorbent in one of two units. It expects to complete in fourth quarter this year an expansion to 675 million lb/year from 525 million lb/year.

LRAN'S Bandar Imam petrochemical complex second phase started up Aug. 1, reports Middle East Economic Survey. This raises capacity to 3 million metric tons/year from 1 million tons/year since 1990, said MEES. Products include ethylene, polyethylene, and polypropylene. A third phase producing benzene, xylene, and aromatics is due for completion in September 1996.

COASTAL CORP. unit Coastal Canada Petroleum Inc. agreed to restart paraxylene production at the former Kemtec Petrochemical plant in Montreal East. The plant, which suspended operation in August 1991, will be capable of producing as much as 400 million metric lb/year. Units could be back in operation as early as the fourth quarter.

TERRA INDUSTRIES INC., Sioux City, Iowa, agreed to buy Agricultural Minerals & Chemicals Inc. (AMCI), Tulsa. Terms call for Terra to pay $400 million for AMCI, which has plants in Blytheville, Ark., and Verdigris, Okla., with combined production of more than 1.4 million tons/year of anhydrous ammonia.

REFINING

SHELL OIL CO. authorized Ralph M. Parsons Co., Pasadena, Calif., to start work on Parsons' part of the second phase of the $150 million clean fuels project at Shell's 147,100 b/cd Martinez, Calif., refinery. Parsons is handling design and procurement.

CONOCO INC. and Pennzoil Products Co. chose Chevron Corp.'s lsodewaxing technology for a lube oil manufacturing plant to be built at Conoco's 182,000 b/cd Lake Charles refinery in Westlake, La. The 15,000 b/d lube plant is to start up in 1997.

TOTAL is leading a group that secured a loan to help build a 100,000 b/d refinery at Dalian, China, reports Nihon Keizai Shimbun, Tokyo. A$193 million loan from a group of 11 Japanese and European banks will help finance the $770 million project. Total's partners are believed to include the cities of Dalian and Daqing.

YEMEN'S Aden refinery resumed operation July 23 after repairs to damage caused during the country's civil war. Middle East Economic Survey said processing resumed at 80,000 b/d for 3 weeks and then was to return to normal throughput of 120,000 b/d.

CHEVRON U.S.A. INC. completed the $170 million sale of its 177,000 b/d Philadelphia refinery to Sun Co. Inc. Sun intends to retain almost all the plant's 550 employees.

MARKETING

TOSCO CORP. completed the purchase of BP America Inc.'s retail gasoline marketing system in California (OGJ, July 11, p. 30). Tosco also received an expanded exclusive license to market under British Petroleum's BP brand in Arizona, California, Idaho, Montana, Nevada, New Mexico, and Utah.

COMPANIES

TRIDENT NGL HOLDING INC., The Woodlands, Tex., and Natural Gas Clearinghouse (NGC), Houston, propose to merge. Upon closing, NGC shareholders will own 84% of the stock of the combined companies.

CHEVRON CORP. agreed to pay $550 million to the U.S. internal Revenue Service, substantially resolving all open tax issues for 1979-87. The settlement also resolves the so-called Aramco advantage issue, which was the focus of a 1993 tax court decision in favor of other former Arabian American Oil Co. shareholders Exxon Corp. and Texaco Inc.

CHEVRON agreed to provide Kuwait Oil Co. technical help on development and transportation of crude from Kuwait's Burgan field for 3-1/2 years. Chevron will provide training, access to its E&P know-how, and managerial help.

U.S. DEPARTMENT OF ENERGY reached a proposed $10.7 million settlement with Murphy Oil Corp. and subsidiaries to resolve allegations that Murphy failed to comply with federal petroleum price and allocation rules during Jan. 1, 1973-Jan. 28, 1981. In agreeing to the settlement, Murphy did not admit to any noncompliance.

A PLANNED MERGER of the marine construction business of Offshore Pipelines Inc. (OPI), Houston, and McDermott International Inc. (Mil), New Orleans, will give OPI shareholders 39% of the stock of a new Panamanian company, J. Ray McDermott SA. Mil will retain 61% of the new company.

A TAKEOVER BID by Talisman Energy Inc., Calgary, received near unanimous approval by minority shareholders of Bow Valley Energy Inc. A total of 99.8% of minority shareholders approved the sale. British Gas plc, majority shareholder in Bow Valley, agreed in May to sell its 53% interest to Talisman for about $720 million (Canadian) in cash and stock (OGJ, May 30, p. 40).

ENSERCH CORP., Dallas, plans to convert Enserch Exploration Partners Ltd. to a publicly traded corporation. Enserch owns 99.2% of the outstanding units of the partnership, which conducts most of the oil and gas exploration and production of Enserch. Details about the restructuring will be issued when documents are filed with the Securities and Exchange Commission.

FOSTER WHEELER CORP. agreed with Enserch Corp. to purchase Enserch Environmental Corp., Lyndhurst, N.J., for $90-95 million. Closing is expected in the fourth quarter.

DRILLING-PRODUCTION

MOBIL EXPLORATION & PRODUCING U.S. INC. increased its gas production off Alabama to more than 350 MMcfd, compared with 270 MMcfd at the start of 1994. Gas comes from Mary Ann and Block 823 fields in the Mobile Bay area.

PETRO-HUNT CORP., Dallas, bought nonoperated working interests and royalty interests in a combined 38 wells in South Louisiana's South Garden City, Reddell, and Perry Point fields from Bargo Energy Co., Houston. It also bought all the working interest in the 1 McCan well in Victoria County, Tex., from Talon Development Co. and other working interest owners.

AEA TECHNOLOGY, Didcot, U.K., formed the Difficult Fields Industrial Group to improve process equipment and technology to develop difficult and marginal oil and gas fields. Funding will come from Hamilton Oil Co. Ltd., Total Oil Marine plc, ABB Global Engineering Ltd., AMEC Engineering Ltd., and McDermott Engineering (Europe) Ltd.

VIETSOVPETRA (VSP) seeks western know-how for repairs of offshore platforms in Dragon field off Viet Nam in the South China Sea. VSP's Vietnamese and Russian partners reportedly have provided adequate operating, maintenance, and repair technology for facility decks and topside production equipment, but have been unable to halt deterioration of platform jackets.

READING & BATES DRILLING CO., a unit of Reading & Bates Corp., Houston, and F.J. Brown & Associates Inc. formed Brown-Reading & Bates Joint Venture to offer turnkey drilling services worldwide.

SHELL OFFSHORE INC. let contract to the Oceaneering Multiflex unit of Oceaneering International Inc., Houston, for the armored subsea electrical multiplex control cable for Shell's Popeye field development project in 2,100 ft of water on Green Canyon Blocks 72, 73, 116, and 117 in the Gulf of Mexico.

ENGEN LTD., Cape Town, plans to raise its interest in U.K. North Sea Alba field to 8% from 2.2% by buying stakes in Alba partners Baytrust Oil Explorations Ltd. and Unilon Oil Explorations Ltd., both of London. Engen said it intends to become an integrated energy group, having developed to date as a major player in South Africa's liquid fuels market.

MOBIL NORTH SEA LTD. spudded the first well off Ireland this year, reports license partner Petroceltic plc, Dublin, The Block 50/10 wildcat is being drilled under a farmout that will give Mobil an 80% interest in Blocks 50/9 and 50/10. Petroceltic will retain a 10% interest, with the other 10% held by Santos Europe Ltd., Guildford, U. K.

TULLOW OIL PLC, London, tested gas from two of six zones in the 1 Sara well drilled in Pakistan's onshore East Badin (Extension) Block B concession. Top Sui Main reservoir flowed 17-75 MMcfd from 982-988 m. The Sui Upper limestone formation flowed 630 Mcfd from 900-908 m. Tullow said the results suggest a small commercial discovery in Top Sui. Three more wells are planned.

PIPELINES

PUBLIC SERVICE CO. OF COLORADO agreed to sell West Gas Gathering Inc. for $87 million to Stephens Group Inc. unit W.G. Acquisition Inc., an Arkansas company. Most of the West Gas assets are in Southwest Colorado on the Southern Ute Indian reservation. W.G. Acquisition and the Southern Ute tribe plan to form a joint venture, Red Cedar Gathering Co., to operate the acquisition.

CENTANA ENERGY CORP., Houston, bought Texaco Inc. unit Neches Gas Distribution Co.'s 8 mile, 8 in. Jefferson County, Tex., portion of the Neches pipeline system. The gas line serves South Texas' Port Arthur area.

CANADA'S National Energy Board will conduct a hearing Oct. 3 in Calgary on Foothills Pipe Lines (Alta.) Ltd.'s proposal to lay and operate the proposed Wild Horse Pipeline. Foothills expects to start operating the $138.6 million (Canadian) gas line Nov. 1, 1996 (OGJ, July 25, p. 46).

USX-DELHI GROUP'S Delhi Gas Pipeline Corp. acquired the West Texas Block 16 gathering and treating assets of Western Gas Resources Inc. in exchange for Delhi's 160 mile pipeline gathering system in Kansas. The Ward County, Tex., assets consist of 21 miles of 3-6 in. pipeline and two treating plants with combined capacity of 190 MMcfd.

GOVERNMENT

A FEDERAL GRAND JURY in Houston indicted U.S. Minerals Management Service Director Tom Fry on bank fraud and conspiracy charges. The indictment alleges Fry, a former lawyer for the Houston area's Memorial Bank and Village Green National Bank, and nine other officers concealed the financial condition of the banks from federal regulators. Both were in financial difficulties and were sold in 199091. Fry will be on leave from MMS until the issue is resolved.

EXPORTS-IMPORTS

CANADA was the top shipper of crude and products to U.S. markets in the first quarter. The American Petroleum Institute reported Canadian shipments to the U.S. averaged 1.25 million b/d for the period. Venezuela was second with 1.19 million b/d and Saudi Arabia third at 1.176 million b/d. Canadian sales are expected to increase this fall when IPL Energy Inc., Calgary, completes the 170,000 b/d expansion of its crude line to Chicago from Edmonton.

TERMINALS

STATIA TERMINALS placed its crude oil storage tanks in service at Point Tupper, N.S., with arrival of the New Victory very large crude carrier July 31. Arrival of the tanker marked the first delivery of crude into the renovated facility in 12 years. Tosco Corp.'s Bayway Refining Co. holds a long term lease with Statia for all the 7.5 million bbl crude capacity at the terminal.