INDUSTRY BRIEFS

REFINING

ABU DHABI NATIONAL OIL CO. let contract to Foster Wheeler International Corp. to provide program management services for expansion of its Ruwais refinery. The project calls for a capacity increase to 270,000 b/sd from 135,000 b/sd and added capability for condensate processing and production of unleaded gasoline. Included are more than 10 new processing units, several revamps, and expansion of jetty, berthing, and refinery infrastructure.

BHARAT PETROLEUM CORP. and Oman Oil Co. received final approval from india's Cabinet Committee on Economic Affairs to build a 120,000 b/d refinery at Bina, india. It is the first of three refineries of similar size set for construction in india by domestic and Persian Gulf companies.

ESSO STANDARD THAILAND LTD. marked completion of a $900 million expansion of its Sri Racha refinery, 50 miles southeast of Bangkok. The project, started in 1991, more than doubled plant capacity to 145,000 b/d from 63,000 b/d. New units produce products such as low sulfur diesel fuel and unleaded gasoline. All major process units were complete by last January, 9 months ahead of schedule.

TOYO ENGINEERING CORP., Mitsui & Co. Ltd., and Mitsubishi Corp. will treble capacity of a refinery they are building for Mangalore Refineries & Petrochemicals Ltd. in India. The plant, with initial capacity of 60,000 b/d, is to go on stream early in 1996. Expanded capacity of 180,000 b/d is to be available near yearend 1998.

U.K. HEALTH & Safety Executive (HSE) filed suits against Texaco Ltd. and Gulf Oil (Great Britain) Ltd. charging negligence that led to an explosion and fire in July 1994 at the Pembroke refinery, South Wales (OGJ, Aug. 1, 1994, p. 25). The companies face charges of failing to ensure, as far as was reasonably practicable, the safety of employees, subcontractors, and the public. Twenty-six persons were injured, none seriously. The cases are to be heard Jan. 9, 1996, in Tenby Magistrates Court, South Pembrokeshire.

COURTS

A FEDERAL APPEALS COURT upheld a U.S. Tax Court ruling that more than 50% of Phillips Petroleum Co.'s income from Alaskan LNG sales comes from a non- U.S. source, as claimed by Phillips. The appellate court also affirmed the lower court's ruling that set aside a regulation classifying such income as entirely domestic. Phillips expects the U.S. government to appeal the case to the Supreme Court.

TANKERS

SHELL U.K. Exploration & Production shipped the 1,000th shuttle tanker cargo of crude oil from the Fulmar field complex in the Central North Sea. The milestone cargo of 150,000 metric tons of oil went to Rotterdam in the retro Fife tanker. Fulmar's Vinga tanker stores oil for export from Fulmar, Gannet, and Auk fields operated by Shell Expro and Clyde field operated by BP Exploration Operating Co. Ltd. Fulmar went on stream in 1982.

PIPELINES

U.K.'S HSE and seven operators began a 10 month project to improve monitoring of flexible pipelines. Work will be carried out by con-suiting engineers Marine Computation Services Ltd. (MCS), Aberdeen. Project backers are Amerada Hess Ltd., BHP Petroleum Ltd., Enterprise Oil plc, Mobil North Sea Ltd., Petroleos Brasileiro SA, Texaco Britain Ltd., and Shell U.K. Exploration & Production. Industry installed the first flexible lines in the North Sea more than 15 years ago.

ALBERTA ENERGY CO. LTD., Calgary, conducted a second open season to gauge producer support for the proposed $530 million (Canadian) Express crude oil pipeline from Alberta to Wyoming. The supplementary open season ran Nov. 28-30, offering "additional flexibility" in firm trans- portation agreements.

AMOCO PIPELINE, Mid-America Pipeline, and Navajo Pipeline companies completed arrangements for a joint venture and formed Rio Grande Pipeline Co. to ship natural gas liquids to Mexico from West Texas (see map, Sept. 4, p. 38). First shipments on the new system are planned for late 1996.

TRANSCANADA PIPELINES LTD., Calgary, and partners completed arrangements for $240 million in U.S. capital markets to finance construction of the TransGas de Occidente pipeline project in Colombia. TransCanada said the debt, which carries a 15 year term, is one of the largest of its kind for Latin American projects. TransGas is to consist of 344 km of 20 in. pipeline from Mariquita to supply gas to Call.

PHILLIPS PETROLEUM CO. let contract to Enercon Engineering Inc. for engineering, drafting, and procurement assistance for completion of a gas sales pipeline for its Mahogany field development project in the Gulf of Mexico. The 16 in., 9 mile pipeline will connect a production platform in Ship Shoal Block 349 in 370 ft of water to a subsea tie-in in 600 ft of water.

NOVAGAS CLEARINGHOUSE Pipelines Ltd., Calgary, asked Canada's National Energy Board for a permit to lay a gas pipeline from Northeast British Columbia into Alberta. The 10.2 mile, $2.9 million (Canadian) Pesh Creek line would have capacity of 20 MMcfd from the unconnected Midwinter field to the proposed Peggo processing plant in Alberta.

ALYESKA PIPELINE SERVICE CO. plans next year to shut down three of the 10 pump stations on the trans-Alaska crude oil line due to reduced throughput because of declining North Slope production. The 1996 shutdowns, along with planned closure of two more stations in the next several years, will save an estimated $100 million during 15 years.

DRILLING-PRODUCTION

ELF PETROLAND BV began production from two gas fields-one offshore and one onshore-in Netherlands. Offshore K5B field started up from two extended reach wells tied back to the K5 platforms. Maximum flow is to be 49.4 MMcfd. Harlingen 101 field, on the Leuwarden concession in northern Netherlands, began production of 17.7 MMcfd from a single well tied into the Harlingen treatment center.

TOTAL YEMEN and partners in Yemen's East Shabwa contract area expect to begin developing Atuf North West field in 1996 after gauging a wildcat drilled in 1993 (see map, OGJ, Aug. 21, p. 29). The wildcat, 1 Atuf North West, flowed 4,867 b/d of 25 gravity oil through a 1 in. choke on a recent test of a 25 m gross perforated interval at an undisclosed depth. Operator Total Yemen, Comeco Petroleum Inc., and Unocal Yemen Ltd. each holds a 28.57% interest in the East Shabwa venture, and Kuwait Foreign Petroleum Exploration Co. holds 14.28%.

AMOCO NORWAY OIL CO. chartered the Transocean 9 jack up from Transocean AS, Tananger, Norway, for 12 months starting next summer. The deal, worth an initial 185 million kroner ($28.5 million), includes two 6 month optional periods that could boost the total contract value to 385 million kroner ($60 million). Amoco plans to drill at least two wells in the first year and has subcontracted the rig to Norske Shell AS and Norsk Agip AS to drill one well each. Amoco said the deal with Shell and Agip allowed it to secure the rig in a very tight market.

NOBLE AFFILIATES INC., Ardmore, Okla., will take a $4.9 million after tax charge to fourth quarter 1995 income. That will reflect $7.5 million in the cost of drilling its 50% owned 1 and 2 Zelfa wells on the 1.2 million acre Cap Bon Marin permit off Tunisia. Although the 10,270 ft 1 Zelfa flowed a combined 4,540 b/d of oil and condensate, as well as associated gas, Noble does not believe results warrant immediate development. The 2 Zelfa was dry.

QARUN PETROLEUM CO. began oil production from its Qarun concession in Egypt. Plans call for a flow of 3,5004,000 b/d during an early production period, scheduled to end upon completion of permanent facilities in second half 1996. Those facilities, with 40,000 b/d capacity, will send oil by pipeline for export at Sidi Kerir on the northern coast of Egypt. Qarun Petroleum is a venture of state owned Egyptian General Petroleum Corp. and contractors Phoenix Resource Cos. Inc., Apache Corp., and Global Natural Resources.

PETROCHEMICALS

INDIAN PETROCHEMICAL CORP. LTD. (IPCL) plans to boost capacity of its Maharashtra polyethylene plant near Bombay by 40% to 220,000 metric tons/year. BP Chem- icals Ltd. announced the expansion would be based on its Innovene technology and will allow IPCL to increase its product portfolio. Engineering has begun, and front end design is slated for completion in mid-1996.

EXXON CHEMICAL CO. agreed to buy a 35% interest in an Antwerp steam cracking complex from Borealis AS, the polyolefins joint venture of Finland's Neste Oy and Norway's Den norske stats oljeselskap AS. The deal involves Neste's share in the Fina-Borealis plant, operated by Belgium's Petrofina SA, which retains a 65% interest. The complex has three crackers rated at 1 million metric tons/year of ethyl- ene and 500,000 metric tons/year of propylene. Closing is expected Jan. 1.

JAPAN'S Mitsubishi Chemical Co. and Tonen Chemical Corp. plan to merge their polyethylene and polypropylene businesses in a 170 billion yen ($1.66 billion) joint venture. The combine will produce as much as 906,000 metric tons/year of polyethylene and 645,000 metric tons/year of polypropylene.

EXPLORATION

ELF PETROLEUM NORGE AS disclosed results of an oil discovery in the Norwegian North Sea. Elf said the 25/5-5 wildcat, 6 km east of its Heimdal gas/con- densate field in 121 m of water, was drilled to 2,600 m vertical depth. The well found oil in Paleocene sandstone and flowed at 2,860 b/d of oil through a 38 mm choke.

CAIRN ENERGY PLC of the U.K. signed a contract with China National Offshore Oil Corp. to explore Block 23/10 in China's Beibu Gulf. The 2,845 sq km tract lies in 10-20 m of water. This brings China's total number of exploration contracts to 109, signed with 60 foreign companies and involving outlays of $4.7 billion.

ENTERPRISE OIL PLC, London, plans a 14 million ($21 million), two well, exploratory drilling program off Northwest Ireland for spring 1996. The company chartered the Petrolia semisubmersible to drill the wells in the Slyne trough area, where water depths are 200-400 m. The first well will be drilled on Block 27/5 in 207 m of water to probe the Avonmore prospect. The second will be drilled on Block 18/20 in 345 m of water.

GAS CONSUMPTION

AVERAGE U.S. and European per capita gas use as of Jan. 1, 1995, was 2,280 cu m/year and 1,550 cu m/year, respectively, not 2.28 cu m/year and 1.55 cu m/year, as shown in a table (OGJ, Nov. 13, p. 27).

COMPANIES

KVAERNER AS, Oslo, launched a 1.8 billion kroner ($285 million) bid for British fabricator AMEC plc, London. Kvaerner intends to sell AMEC's housing and property businesses within a year to raise 2 billion kroner ($320 million). AMEC's board rejected Kvaerner's bid. Kvaerner earlier bought 20 million AMEC shares, giving it a 12% interest.

BARGO ENERGY CO., Houston, signed a definitive agreement to buy substantially all of Reunion Resources Co.'s U.S. oil and gas assets for $15.1 mil- lion cash. Closing is scheduled next January.

MAXUS ENERGY CORP., Dallas, early next year will begin joint venture negotiations with a few companies covering its U.S. gas assets. The goal is improved efficiency through larger scale operations that allow Maxus to retain "a significant interest" in the U.S. gas market. Maxus' U.S. gas assets, largely in the Midcontinent, include 513 bcf of reserves.

ASHLAND INC. this quarter will record a $47 million after tax profit from $74.6 million it received as a settlement in Columbia Gas Transmission Corp.'s bankruptcy proceedings.

ATCO LTD., Calgary, is negotiating to sell its oil and gas unit, Atcor Resources Ltd. ATCO, a diversified company, declined to disclose a buyer for the sale worth as much as $150 million (Canadian). Atcor produces 4,100 b/d of oil and 46 MMcfd of gas. Reserves at the end of 1994 were 13 million bbl and 132 bcf.

INUVIALUIT PETROLEUM CORP., (IPC), Tuktoyaktuk, N.W.T., acquired 91.8% of shares to complete a takeover of Omega Hydrocarbons Ltd., Calgary. Omega will become a subsidiary of IPC unit Inuvialuit Energy Inc., Calgary. The deal cost $61.9 million (Canadian), including assumption of Omega debt. IPC's offer for remaining Omega shares will be open until Dec. 28, when it can acquire them under Canadian law.

TERMINALS

COSCOL PETROLEUM CORP., a unit of Coastal Corp., Houston, formed a venture with Sadkora AB of Sweden to refurbish a terminal at Maardu, Estonia, and sell petroleum products, mainly from the former Soviet Union. The combine owns EOS Ltd. of Estonia, which holds a contract with a unit of state owned Esoil Ltd. for use of the Maardu terminal. Plans call for expansion of the terminal's storage capacity to 800,000 bbl and construction of a 4 1/2 mile pipeline to allow shipments of crude and products from the port of Muuga on the Baltic coast.

GAS STORAGE

CMS GAS TRANSMISSION & STORAGE CO., A UNIT OF CMS ENERGY CORP., Dearborn, Mich., agreed to buy Chevron U.S.A. Production Co.'s Petal Gas Storage Co. Petal owns a 3.2 bcf storage site in Forrest County, Miss., tied into Tennessee Gas and Koch Gateway transmission lines. CMS and Chevron expect to close the trade on the salt dome cavern by yearend.