INTERNATIONAL BRIEFS

PETROCHEMICALS

SHELL NEDERLAND CHEMIE BV let a $50 million contract to Fluor Daniel for engineering and procurement services for a 20% capacity expansion of its Moerdijk, Netherlands, styrene propylene oxide plant. Current capacities are 320,000 metric tons/year of styrene and 125,000 metric tons/year of PO. Engineering is under way, with completion set for late 1991.

AMERADA HESS CORP. and the government of Gabon formed a joint venture company that bought a 10% interest in Rabi-Kounga oil field. Amerada spent $300 million for a 67% interest in the company. Rabi-Kounga's proved and probable reserves are estimated at 425 million bbl, and gross production is expected to reach 140,000 b/d during 1991.

SHELL CHEMICAL INTERNATIONAL will buy 50,000 metric tons/year of ethylene and 12,000 metric tons/year of propylene from Pequiven SA under a 3 year minimum contract starting in October 1991 after a new olefins plant starts up in Venezuela's Zulia state.

TAIWAN'S China American Petrochemical Co. (Capco) will join units of Amoco Corp. and Exxon Corp. to study feasibility of a $300 million-plus, 350,000 ton/year paraxylene plant as part of an aromatics complex next to the 170,000 b/d Esso refinery in Singapore. The Esso plant would supply feedstock. Amoco and Capco will use paraxylene feed to boost purified terephthalic acid capacity in China, Indonesia, and elsewhere in the Far East. Exxon will market some of the PTA in the region.

DRILLING-PRODUCTION

CANADIAN Association of Oilwell Drilling Contractors reports Canada's contract drilling industry continues to shrink as a result of consolidations. The association said the number of contractors declined to 56 in 1990 from 90 in 1980. The number of rigs available fell to 478 from 539.

LASMO NOVA SCOTIA LTD. let contracts worth more than $275 million (Canadian) for its project to develop Panuke and Cohasset fields off Nova Scotia. It let a drilling contract worth about $150 million (Canadian) to Rowan Cos. Inc. Lasmo also awarded a $40 million (Canadian) contract to Secunda Marina Ltd., Dartmouth, N.S., for supply ships and crews.

CHEVRON UNITED KINGDOM is offering selected U.K. North Sea assets for sale, including interests in Murchison, Dunlin, and Don fields, Lyell and Buckland subsea developments planned for 1992 start-up, and exploration licenses in the northern and southern sectors. Chevron expects to complete the sale by second quarter 1991.

COMPANIES

WEGA-D GEOPHYSICAL LTD., Calgary, signed an expanded joint venture agreement with the Soviet agency Neftegeofizika, Moscow, a unit of the U.S.S.R. Ministry of Geology. It gives WEGA rights to drill for, produce, and export Soviet oil and operate small refineries, expanding on the company's earlier deal to use and market WEGA geophysical technology.

EXPLORATION

CANADIAN Oil and Gas Lands Administration received no bids for exploration rights on new Beaufort Sea acreage. It had called for nominations for rights on selected parcels in the western Beaufort. Companies have drilled no wells this year in the offshore Arctic. Ottawa has established a committee to resolve disputes between several agencies over drilling and environmental issues in the region.

OCCIDENTAL PETROLEUM CORP. plans to conduct seismic surveys and drill four wildcats under an initial 2 year period covered by a new production sharing contract in Yemen. The contract covers the 674,000 acre Al-Oglah (S2) Block on trend with giant Alif oil field in the Shabwah area.

SUN OIL LARGEAU CHAD LTD. and Hunt International Petroleum Co. Ltd. agreed to explore a 62 million acre concession in Chad. Chad's oil minister approved the joint venture, which Sun will operate with a 50% interest.

CIE. GENERALE DE GEOPHYSIQUE, Massy, France, signed a 50-50 joint venture agreement with Neftegeofizika. The venture, Sovfransgeo, will build geophysical equipment and provide geophysical services. Its home office will be in Marofominsk, outside Moscow.

BRITISH GAS PLC signed an exploration agreement covering the 4,500 sq km Block 34 in Central Pakistan. British Gas has a 50% interest in the acreage in partnership with Pakistan Petroleum 30%, Tullow Oil plc 15%, and Oil & Gas Development Corp. of Pakistan 5%. In the first 3 year phase of the license British Gas will conduct field geological studies and seismic surveys and drill one well.

MAXUS ENERGY CORP., Dallas, agreed to a 1 year technical evaluation contract with Morocco calling for geological and geophysical studies, including seismic surveys, on more than 11 million acres in Central Morocco. Maxus has the option to obtain exploration and development licenses after it completes the study.

OCCIDENTAL BERAU OF INDONESIA LTD.'S 1 Roabiba wildcat, in Berau Bay off Irian Jaya, flowed 23 MMcfd of gas through a 5/8 in. choke. Interests in the well, about 3,000 km east of Jakarta, are operator Oxy 40%, and Sun Oil Berau Indonesia Ltd. and Nippon Oil Exploration (Berau) Ltd. 30% each.

AMERADA HESS LID. temporarily suspended its 205/26a-3 oil well west of the Shetland Islands after testing. Amerada disclosed no gauge but said it plans further work to determine the commercial significance of the discovery.

LNG

ABU DHABI GAS LIQUEFACTION CO. let a $600 million construction contract for expansion of the Das Island LNG plant off Abu Dhabi to Chiyoda Corp. of Japan. Chiyoda will build a 2.3 million ton third LNG train to double capacity of the plant and add 250,000 tons/year to the existing 750,000 ton/year LPG capacity at Das Island. It is scheduled to be complete in 1994.

TRANSPORTATION

COPPIM was jointly formed by four Canadian companies to limit environmental damage from accidents along a 1,000 mile stretch of the St. Lawrence River east of Montreal. Coppim will use the resources and equipment of its four members, Imperial Oil Ltd., Shell Canada Ltd., Petro-Canada, and Ultramar Canada Inc., to respond mainly to oil spills with the Canadian Coast Guard and port authorities.

AMOCO (U.K.) EXPLORATION CO. ordered 225 miles of 36 in. line pipe from Mannesmannrohren-Werke AG, Mulheim, Germany, for its pipeline from Everest and Lomond fields in the U.K. North Sea to Teesside, England. The pipe is to be delivered by yearend 1991. The 1.12 in. and 1.34 in. W.T. pipe will also be capable of moving sour gas from other fields.

Copyright 1990 Oil & Gas Journal. All Rights Reserved.