LNG
ISRAEL signed a letter of intent with Enron Corp. to buy liquefied natural gas from Enron's planned $4 billion, 5 million metric ton/year Qatar LNG project tied to development of supergiant North gas field off Qatar. The proposed deal calls for Israel to take 2 million tons/year of LNG starting in 2000 under a contract valued at $400 million. A $300 million LNG import terminal is envisaged on either the Red Sea or Mediterranean coast.INDONESIA'S state owned Pertamina signed a $6 billion deal to supply LNG to Taiwan's Chinese Petroleum Corp. for 20 years. The contract extends a current long term deal due to expire in 2010. The new contract calls for Pertamina to provide 1.84 million metric tons/year of LNG beginning in January 1998. Gas reserves targeted for the contract are from recent East Kalimantan discoveries.
TANKERS
A COMBINE of Hibernia oil field owners let contract to Samsung Heavy Industries Go. Ltd. to build two 127,000 dwt, 850,000 bbl capacity arctic class oil tankers to transport crude from the field off eastern Canada. Delivery date is October 1997. One tanker will be owned by Atlantic Shuttle 1 Ltd. and leased to Petro-Canada and Canada's state owned Canada Hibernia Holding Corp. The second will be owned by Mobil Oil Canada Ltd., Chevron Canada Resources Ltd., and Murphy Atlantic Offshore Oil Co. Press reports place the contract value at about $200 million.COMPANIES
ARAN ENERGY PLC, Dublin, recommended its shareholders accept a $315 million takeover bid by Norway's Den norske stats oljeselskap AS. Statoil's offer was almost 20% higher than an earlier bid by ARCO. Statoil and Aran recently agreed to jointly study development of the Connemara discovery, ireland's only oil discovery (OGJ, Oct. 9, Newsletter).LOUISVILLE GAS & ELECTRIC CO. is among the top 10 independent power marketers in the U.S., not Louisiana Gas & Electric, as reported incorrectly (OGJ, Oct. 23, p. 33).
DRILLING-PRODUCTION
SEATANKERS MANAGEMENT CO. LTD., Cyprus, purchased the Emerald Producer production semisubmersible on station in U.K. North Sea Emerald oil field from Trafalgar House plc, London, for $33.25 million.CLYDE PETROLEUM PLC, Ledbury, U.K., agreed to buy an 18.25% interest in U.K. North Sea Block 13/28a from Elf Enterprise Caledonia Ltd. In a separate agreement, Clyde will pass on a 6.33% interest in the block to Lasmo plc. This gives Clyde an 11.9% interest in the block for a net $5.3 million. The block contains the Ross discovery, with estimated oil reserves of 65 million bbl. A Ross development plan, most likely involving a production/storage vessel, will be submitted to the U.K. government next year, with first oil expected in late 1997 or early 1998.
NOVAGAS CLEARINGHOUSE LTD., Calgary, has approval from the Canadian gas supply pool of Pan- Alberta Gas Ltd. to supply 150 MMcfd to straddle plants at Empress and Cochrane, Alta. The Calgary supply pool of 450 Alberta gas producers recently voted on the deal.
SVENSKA PETROLEUM EXPLORATION U.K. LTD. agreed to a U.K. North Sea license exchange with British Gas Exploration & Production Ltd. Svenska will take a 6.45% interest in Block 30/17a, which contains the Janice discovery, in return for a 15% stake in Block 22/2a. A two well Janice appraisal program is under way with a view to early development. Kerr-McGee Oil (U.K.) plc operates Block 30/17a.
TRANSTEXAS GAS CORP., Houston, increased its gas reserves by 56.5% from fiscal 1994 to 1.141 tcf. The company's drilling programs in the La Grulla, North Bob West, and Cuba Libre gas development areas of the South Texas Lobo trend enabled it to replace 272% of reserves at an all-sources finding cost of 46/Mcf during the fiscal year ended July 31, 1995.
ASHLAND EXPLORATION INC., Houston, and partners will install production facilities in 360 ft of water on Vermilion Block 410 gas field off Louisiana, where a 1994 discovery and seven delineation wells will be completed as producers. Plans call for installation of a four pile manned platform over four wells on Block 410 and a tripod well support structure over four wells on Vermilion Block 389. The wells will produce from Vermilion Blocks 389, 409, and 410 and East Cameron Block 362.
U.K. HEALTH & SAFETY EXECUTIVE published guidelines on new onshore drilling regulations that went into force Oct. 1. The new requirements include preparation of risk assessments for wells, as well as advance notice of types of wells to be drilled and plans to cope with drillsite emergencies.
CENTRAL RESOURCES INC., Denver, purchased certain Permian basin producing leases from Apache Corp., Houston, for $22.8 million. The properties are mainly nonoperated and involve 67 fields. Reserves are about 85% crude oil.
DUAL DRILLING CO., Dallas, appointed Simmons & Co. International, Houston investment banking firm, to provide assistance and advice on choices to increase shareholder value, including possible sale or merger of the company. Dual stressed that no negotiations have begun, and no party for such a transaction has been identified.
PARKER DRILLING CO., Tulsa, signed a contract with China's state owned Great Wall Drilling Co. to act as liaison with foreign oil companies that will be working in Northwest China's Tarim basin in 1996. The agreement calls for Parker to manage Great Wall's rigs and train its crews. In addition, through equipment and safety audits, Parker will help the Chinese firm meet international industry standards for rigs and crews. Great Wall purchased several rigs at U.S. auctions, and Parker will help the Chinese company modify and upgrade them for Tarim drilling.
U.S. MINERALS MANAGEMENT SERVICE (MMS) will conduct a Nov. 29 public meeting in Houston to discuss a proposed rule-making on liability for payments due on federal and Indian leases. MMS wants to clarify which persons may be held liable for unpaid or underpaid royalties or other payments.
INTERNATIONAL FINANCE CORP. (IFC) signed a $70 million financing agreement to help Bridas Sapic, Buenos Aires, boost recovery in its oil fields and begin an exploration program in Argentina. IFC, a member of the World Bank Group, will lend Bridas $20 million, invest $10 million in the firm, and arrange for a syndicated loan of $40 million with international financial institutions.
GAS MARKETING
APACHE CORP., Oryx Energy Co., and Parker & Parsley Petroleum Co. formed Producers Energy Marketing LLC (ProEnergy), Houston, a natural gas marketing company organized to create a direct link between gas producers and purchasers. ProEnergy believes it will be marketing about 2 bcfd of gas when it starts up in first quarter 1996, ranking it among the 15 biggest U.S. gas marketing companies.PRODUCTS MARKETING
FINLAND'S Neste Oy began selling reformulated gasoline at its 12 service stations in Poland. The fuel, sold under the Futura brand, is described as a distinct improvement over other gasoline currently available in Poland. Neste claims to be the gasoline market leader in North Poland in terms of station numbers and sales volumes. The company plans to open stations in Warsaw and Sopot by yearend.PIPELINES
GREECE'S Foreign Minister Karolos Papoulyas confirmed an oil import pipeline agreement among Russia, Bulgaria, and Greece is to be signed this month. The project calls for a 300 km, $670 million line from the Bulgarian port of Burgas to the Aegean Sea port of Alexandroupolis. Russian oil could then be sent across the Black Sea by tanker from Novorossiisk to Burgas, then make the rest of the journey to western markets, bypassing the Bosporus Straits tanker route.MMS withdrew a proposed rule to require shutdown valves on pipelines from offshore production platforms. MMS plans soon to review all of its regulations governing offshore pipelines and decided to defer the valve rule until then.
BRITISH GAS PLC let a $17.8 million contract to lay a gas pipeline in Northern Ireland to a joint venture of London's Alfred McAlpine Ltd. and Brown & Root Ltd. The line will run from Ballylumford power station to Torytown, south of Carrickfergus. It is part of a $700 million plan to import gas into Northern Ireland via subsea pipeline from Scotland, convert the power plant to gas fired operation, and establish a gas supply grid in the province.
U.S. TRANSPORTATION DEPARTMENT'S Research and Special Programs Administration extended for 1 year its original Dec. 7 deadline for pressure testing older hazardous liquid and carbon dioxide pipelines. The American Petroleum institute had urged the delay, saying a risk based approach would allow operators to better focus their resources.
PETROCHEMICALS
BOREALIS AS, the petrochemicals joint venture of Neste Oy and Statoil, plans to revamp its phenol plant at Porvoo, Finland. The unit's current capacities are 145,000 metric tons/year of cumene, 105,000 tons/year of phenol, and 65,000 tons/year of acetone. Borealis plans to boost capacity by 20-30%. A feasibility study will be completed before an investment decision in spring 1996, with start of construction slated for 1997 at the earliest.SUMITOMO CHEMICAL CO. plans to upgrade its 120,000 metric ton/year polypropylene plant in Japan's Chiba prefecture. The $70 million revamp, to be complete by October 1997, is expected to cut plant staff levels by 30% and the amount of energy needed to produce the same volume.
THAI PETROCHEMICAL INDUSTRY PUBLIC CO. LTD., Bangkok, will build a 200,000 metric ton/year polyethylene (PE) plant based on Union Carbide Corp.'s Unipol process at Rayong, Thailand. Scheduled for completion in 1997, it will be a swing plant capable of producing the full PE range.
EXXON CHEMICAL CO. will acquire AlliedSignal Inc.'s 50% interest in the high density polyethylene (HDPE) business of Paxon Polymer LP, Baton Rouge, by yearend. Exxon acquired 50% of Paxon's business in 1990 and has been 50-50 partners with AlliedSignal since then. Paxon's Baton Rouge plant has a capacity of 1.5 billion lb/year of HDPE.
GAS PROCESSING
WESTCOAST GAS SERVICES INC., Vancouver, B.C., plans to build, own, and operate a $45 million (Canadian) gas processing plant in the Jedney area of British Columbia. The 70 MMcfd plant, about 112 miles northwest of Fort St. John, B.C., is to process gas produced by Petro-Canada in the area. The project is to include a 17 mile pipeline to Westcoast's main gas pipeline. Plant start-up is scheduled for late 1996.EXPLORATION
TECO ENERGY INC., Tampa, plans to increase its gas production by participating in an exploration and development joint venture in shallow water off Texas and Louisiana. The venture obtained several leases at a federal Gulf of Mexico lease sale and has negotiated drilling rights on other tracts. The first wildcat, completed this month, was successful. The program will make extensive use of 3D seismic data. TECO is a holding company whose main subsidiary is an electrical power utility.MARATHON OIL CO. found a sixth reef in Texas' Cotton Valley Reef trend. Its 1 Brounkowski discovery well in Robertson County found a productive reef similar to those in discovery wells 1 Poth, 8 miles northeast, and 1 Riley Trust, 6 miles southwest. The Brounkowski flowed 18.1 MMcfd of gas through a 21/64 in. choke with 7,820 psi flowing tubing pressure. Marathon plans to continue exploring the play, where it owns more than 40,000 acres and a large inventory of reef prospects to drill (see map, OGJ, Aug. 28, p. 101).
TOTAL agreed to earn a 30% interest in Asamera South Jambi Ltd.'s South Jambi B production sharing contract area in South Sumatra. Asamera is a unit of Gulf Canada Resources Ltd. During the next 2 years Total will fund exploration work, including seismic surveys and two wildcats. The first wildcat, 1 Bungkal, spudded early in October.
TEXOIL INC., Houston, agreed to earn a 40% working interest in a Galveston County, Tex., leasehold owned by Meridian Oil Inc., Houston, by conducting a 20 sq mile, 3D seismic survey on the acreage. Texoil acquired lease options on much of the prospective area and expects to begin the survey in first quarter 1996, with a wildcat to spud soon thereafter. Primary focus will be on the Big Gas (Frio) sand, prolific in the area.
REFINING
PERTAMINA last week resumed partial operations at its 300,000 b/d Cilacap refinery in Central Java following a tank farm fire that blazed for 4 days before firefighters extinguished it. The fire was sparked Oct. 24 when lightning struck a distillation tower and spread to seven storage tanks that contained kerosine, kerojet, and naphtha. Pertamina estimated damage at $33 million and described the fire as Indonesia's worst refinery fire in 2 decades. The state oil company doesn't expect full capacity operations to resume for 3 months.PETRO-CANADA sold a mothballed refinery in Northeast British Columbia to F.A.L. Oil Ltd. of the United Arab Emirates. The Taylor, B.C., plant has been shut down for 4 years. Work to dismantle it is to begin this month. Copyright 1995 Oil & Gas Journal. All Rights Reserved.
