INTERNATIONAL BRIEFS

COMPANIES

STE. NATIONALE ELF AQUITAINE received Spanish government approval to buy a 25% interest in Cia. Espanola de Petroleos SA in a deal worth about $475 million. Elf initially will acquire a 20.5% interest in the Spanish refiner/marketer before the end of this month for $400 million. It will buy the remaining 4.5% in 1991.

EXPLORATION

OCCIDENTAL PETROLEUM MALAYSIA LTD.'S 1 Bentara discovery, about 100 miles off Sarawak, Malaysia, flowed 1,200 b/d of 32 gravity oil through a 7/16 in. choke and 9.8 MMcfd of gas through a 1/2 in. choke from two zones. The well, on Block SK-6 in 200 ft of water, cut several oil and gas zones at 6,726-8,695 ft.

A GROUP led by Texaco Inc. tested two Cretaceous dolomite discoveries 5 and 9 miles off Northwest Angola on Block 2, north of Luanda. Its 1 Estrela flowed more than 2,100 b/d of 36.2 gravity oil from 7,794-7,824 ft. The 1 Morsa West wildcat flowed a combined 1,600 b/d of 36-37 gravity oil from three pay zones at 4,916-5,066 ft. Interests are Total Angola and Petrobras Internacional SA 27.5% each, Soc. Nacional de Combustiveis de Angola (Sonangol) 25%, and Texaco 20%.

PETROLEUM AUTHORITY OF THAILAND'S Exploration and Production Co. (Patep) signed a preliminary contract with Unocal Myanmar Ltd. for exploration and development on the Block F concession in Myanmar. A new firm, Patep (Myanmar), will be in charge of joint operations on the 6,200 sq km tract. The contract calls for $60 million to be spent the first 3 years, with operations to begin in 1994 if the site proves productive.

INTERNATIONAL PETROLEUM LTD. (IPL) farmed out a 12.5% interest to Hardy Oil & Gas (U.K.) Ltd., London, and a 5% interest to Grauten Oil AB of Sweden in its concession in Ras Al Khaimah, U.A.E. IPL also farmed out to Hardy a 50% interest in its KG-OS-IV block in the Krishna Godavari basin on India's east coast and a 20% interest in Blocks 1 and 3 off Benin. A 600 km seismic program is set to start in Benin during the next 3 months, with the first well to be spudded in 1991.

REFINING

SAIGON PETROL, Ho Chi Minh City, signed a contract with the Japanese-U.S. Electronic Investment Enterprise (EIE) to boost the capacity of Cat Lai refinery, Viet Nam's only refinery. Its capacity will be increased to produce 14 products totaling 250,000 tons/year from present capacity of four products totaling 40,000 tons/year.

REPSOL SA of Spain will spend $300 million during 10 years on environmental programs, including about $35 million in 1991-92 to improve antipollution measures at five refineries.

ULTRAMAR CANADA INC., Montreal, will invest as much as $100 million (Canadian) in its 120,000 b/d Quebec City refinery to enable it to handle less expensive crudes and broaden its product range. Details of the project have not been decided.

EXPORTS-IMPORTS

NATURAL GAS CLEARINGHOUSE (NGC), Houston, extended for 5 years its contract with Pan Alberta Gas Ltd., Edmonton, to import Canadian gas for NGC resale in the U.S. NGC will continue to make individual gas purchases depending on the needs of its customers.

DRILLING-PRODUCTION

CANADA'S House of Commons approved a $2.7 billion (Canadian) federal funding package for the Mobil Oil Canada Ltd. group's $5.2 billion Hibernia oil field development project off Newfoundland (OGJ, Sept. 24, p. 46). Newfoundland Offshore Contractors received a contract for engineering and procurement of topside facilities to be installed on the Grand Banks in 80 m of water 315 km east southeast of St. Johns, Newf., and for project services through 1996. The federal spending package requires Senate approval.

NORSK HYDRO AS drilled an appraisal well on the South Omega structure in the Norwegian North Sea, southwest of its Oseberg field, which flowed 6,111 b/d of light oil and 17.3 MMcfd of gas. Omega South is a candidate for development as an Oseberg satellite.

ENSIGN DRILLING INC., Calgary, bought the assets of Regent Drilling Ltd., Edmonton, which was in receivership, for an undisclosed price. The purchase includes 12 drilling rigs and ancillary equipment.

AMERADA MINERALS CORP. OF CANADA LTD. acquired about 80% of producing oil and gas leases and 250,000 net acres of exploration leases owned by Placer Dome Inc. unit Placer Cego Petroleum Holdings Ltd. for about $215 million. The leases, mainly in Alberta and British Columbia, hold proved and probable reserves of 6.9 million bbl of crude oil and natural gas liquids and 201.4 bcf of gas with production of 3,200 b/d and 32 MMcfd.

OMAN will increase oil production during the next 3 months to 700,000 b/d from 660,000 b/d, said Rashid al-Barwani, marketing director for the Omani Ministry of Petroleum.

A LIMITED PARTNERSHIP of Scandinavian and U.S. investors managed by Norex America Inc., Hamilton, Bermuda, acquired about $58 million of the senior secured debt of Zapata Corp., Houston. The limited partnership will hold a $5.5 million secured note and 5 million shares from Zapata if Zapata completes its reorganization as planned.

EXALL RESOURCES LTD., Toronto, and Canadian Hunter Exploration Ltd., Calgary, agreed to place on stream shutin gas and NGL from a 30 bcf proven reserve pool northwest of Calgary. The tie in, to be complete by first quarter 1991, was moved up from the third phase to the first phase of their Alberta joint venture (OGJ, Oct. 1, p. 30).

AKER DRILLING AS, Tananger, Norway, paid Transocean Drilling Co. Ltd. $210 million for four jack up rigs-Transocean 4, 5, 6, and 7-and the Transocean 8 harsh environment semisubmersible.

GARNET RESOURCES CORP., Houston, plans to seek approval from Colombia's state owned Empresa Colombiana de Petroleos to develop and produce Toroyaco and Linda fields. Project plans include laying a 50 mile oil pipeline to the Trans-Andean system for export. Production is not expected to begin before second half 1991.

GAS PROCESSING

AS NORSKE SHELL awarded the pre-engineering contract for an onshore processing plant to serve the Troll offshore gas development in the Norwegian North Sea to Norwegian Petroleum Consultants. Part of the work will be undertaken by subcontractors M.W. Kellogg and Multiconsult AS.