INTERNATIONAL BRIEFS

REFINING

COASTAL ARUBA REFINING CO. BV started up the crude unit at its San Nicolas, Aruba, refinery. It is producing as much as 100,000 b/d of kerosine, diesel, No. 6 oil, and feedstocks for other Coastal Corp. refineries. Throughput is to increase to 150,000 b/d early next year. Coastal last year purchased the former Exxon Corp. refinery (OGJ, Oct. 30, 1989, p. 30), mothballed since March 1985, and is spending more than $150 million to rehabilitate the plant.

OBERRHEINISCHE MINERALOLWERKE GMBH, Karlsruhe, Germany, started up a 110,000 ton/year methyl tertiary butyl ether plant at its 142,000 b/d Karlsruhe refinery. The plant, which uses a C4 stream from the refinery's fluid catalytic cracking unit, was installed by Edeleanu GmbH, Frankfurt, using the RWE-DEA MTBE process.

DRILLING-PRODUCTION

PETROLEUM DEVELOPMENT OMAN let a turnkey contract valued at $60-90 million to National Drilling Services Co. for drilling related to PDO's $500 million Lekhwair waterflood project in the Rub al-Khali area of Oman (OGJ, May 18, p. 28). NDSC, an Omani company owned 70-30 by Galfar Group of Oman and Forasol-Foramer, Paris, will mobilize two rigs to begin drilling by August 1991, as well as provide ancillary services. Plans call for at least 112 wells taking about 2 years, with an option for a third year for a total of 170 wells.

HARDY OIL & GAS PLC, London, will earn a 6.33% interest in the Keith oil discovery in U.K. North Sea Block 9/8a by carrying part of Hamilton Bros. Oil & Gas costs in further exploratory and appraisal drilling on the block.

MARATHON OIL TUNISIA started production of 410 gravity oil from Ezzaouia field on the Zarziz permit in Southeast Tunisia. The 12,000 b/d capacity production facilities and a new 35,000 dwt capacity marine export terminal at Zarzus, about 5 miles away, cost $85 million. Marathon operates on behalf of state oil company ETAP, Ste. Nationale Elf Aquitaine, and Oranje-Nassau of Netherlands.

BEAU CANADA EXPLORATION LTD., Edmonton, and Claude Resources Inc., Saskatoon, Sask., completed the purchase of Amoco Canada Ltd.'s Twining oil and gas fields in Alberta for $27.5 million. The two formed a joint venture to operate and develop the properties and plan a $9.5 million development program.

COGENERATION

U.K. GOVERNMENT approved construction of a cogeneration plant at Clwyd, North Wales. Deeside Power Development Go. is negotiating a firm gas supply for its plant, due to start up in late 1993.

COMPANIES

ENIMONT, the Italian basic chemicals group, will return to 100% state ownership following sale of privately held Montedison SpA's 40% interest to state owned Ente Nazionale Idrocarburi for $1.27 billion. The sale follows more than a year of disputes and court actions over control of Enimont. Meantime, Montedison formed a new holding company, Montecatini SpA, for its chemical, energy, and pharmaceutical businesses following its merger with Ferruzzi Agricola Finanziaria. Montedison will hold 100% of Montecatini.

MOBIL OIL CORP. will pay $13 million to National Iranian Oil Co. to settle an Iranian claim for unpaid crude oil cargoes following Iran's 197879 revolution. Mobil had claimed compensation for expropriation of its onshore interests in Iran. The settlement results from mediation by the Hague Tribunal.

INDIA'S Oil & Natural Gas Commission is trying to raise 30 billion yen in Japanese bonds through Nikko Securities to meet its internal needs for foreign exchange. An effort last summer to raise $150 million in Japanese markets failed. ONGC also is negotiating with J.P. Morgan and Credit Suisse First Boston to raise $200 million in U.S. capital markets.

PIPELINES

TRANSCANADA PIPELINES LTD. let a $100 million contract to Stelco Inc. unit Stelpipe, Hamilton, Ont., for 50,000 metric tons of 20-48 in. pipe for delivery in mid-1991 and for another 35,000 tons of pipe for part of its major expansion awaiting regulatory approval (OGJ, Nov. 26, p. 38). Separately, TransCanada let a $67 million contract to Ocelot Industries Ltd. unit O.J. Pipelines Inc. for a 99.2 km spread in eastern Manitoba and western Ontario. Construction is to begin Dec. 14 and be complete Apr. 2, 1991.

EXPLORATION

TULLOW OIL PLC Dublin, signed a production sharing contract covering North Sanau block in Yemen on the southern flank of the Arabian basin bordering Saudi Arabia. The 14,000 sq km tract is next to a block awarded to Ste. Nationale Elf Aquitaine and near blocks awarded to Total CFP and Occidental Petroleum Corp. (OGJ, Nov. 5, p. 32). Tullow's partners are Bin Ham Group of the U.A.E. and Coplex (Yemen) Ltd. Exploration, to begin early in 1991, is expected to last 3 1/2 years. Work will include field geological studies, seismic surveys, and drilling of two wells.

STE. NATIONALE ELF AQUITAINE tested the biggest discovery in its Nigerian exploration program. Elf 1 Amenam flowed 3,000 b/d of oil on OPL 93 permit, about 20 miles off Nigeria's southeast coast.

OCCIDENTAL PETROLEUM CORP. 1 Jivino flowed a combined 3,819 b/d of 26.4 gravity oil from Cretaceous Napo and Hollin in Ecuador's eastern jungle. Site is on Oxy's 100% owned, 494,000 acre Block 15 just south of giant Shushufindi field and within a 5 mile radius of three other Oxy discoveries on the block.

EGYPT will invite bids for acreage in the Gulf of Suez and Mediterranean part of the Nile Delta and for onshore acreage in the Western Desert, the Nile Delta, and the northern part of the Eastern Desert. Closing for bids is June 30, 1991.

CONOCO INDONESIA INC. 1 Buntal flowed a combined 63.4 MMcfd of gas on three tests of Miocene Middle Arang in the Natuna Sea off Indonesia. The discovery is on South Natuna Block B, about 10 km southwest of Tembang gas field and 29 km east of Belida oil field. Conoco, with a 40% interest, is production sharing contractor for state oil company Pertamina with other interests held by a Texaco Inc. unit 25%, a Chevron Corp. unit 17.5%, and an Indonesia Petroleum Ltd. affiliate 17.5%.

PETROCHEMICALS

HONG KONG PETROCHEMICAL CO. (HKPC) started construction ;f a $150 million, 75,000 ton/year, polystyrene plant at Yuen Long, New Territories, Hong Kong. It is to be complete in February 1992. HKPC is a joint venture of Montedipe SRL unit Montedipe Netherland BV 35%, China International Trust & Investment Corp. unit West Green Corp. 35%, and Yukong Ltd. 30%.