INDUSTRY BRIEFS

LNG

MOBIL CORP. and Qatar General Petroleum Corp. signed heads of agreement for Mobil to take a 10% interest in the Qatargas project to produce 6 million metric tons/year of LNG (OGJ, May 25, p. 30). Total will retain its 10% stake in Qatargas, leaving Mobil's interest to come from partners Mitsui or Marubeni, each with 10%, or QGPC. The agreement also calls for Mobil to take a 30% interest in a new joint venture company that would produce more than 10 million tons/year of LNG. Both projects are at Ras Laffan.

GOVERNMENT

SASKATCHEWAN amended the Saskoil Act, relaxing foreign ownership restrictions on Saskatchewan Oil & Gas Corp., Regina, so foreign investors may hold as much as 35% of outstanding common shares. They previously were limited to nonvoting shares. The maximum individual holding will be increased to 10% from 4%. Foreign investors can hold more shares with board approval but can vote only a 10% holding. Saskoil, a former provincial crown corporation, was privatized in 1985, but legislation limited foreign ownership.

REFINING

TWO UNITS in Petrola Hellas SA's 100,000 b/d refinery near Athens exploded and caught fire Sept. 1, killing one worker and injuring 25. Cause of the blast at the naphtha and jet fuel units was not immediately clear, Associated Press reported. The plant's storage tanks were not damaged. It is the third largest refinery in Greece. Public Petroleum Corp., a state owned company that monitors refineries, said it was not clear how the explosion would affect plant production.

VITOL SA INC., Houston, tentatively agreed to buy Newfoundland Processing Ltd.'s 105,000 b/d Come By Chance, Newf., refinery. Vitol is paying for a $10 million (Canadian) maintenance overhaul of the refinery, which opened in 1974. The refinery went into bankruptcy several years later and was reopened in 1987 by Newfoundland Processing, a unit of Newfoundland Energy Ltd. of Bermuda. The sale to Vitol is expected to close by yearend.

SPILLS

GUERRILLAS dynamited a new oil pipeline in Colombia's Magdalena Valley just as state oil company Empresa Colombiana de Petroleos was test pumping prior to placing the line fully on stream. About 8,000 bbl of crude spilled into the Vijaguala stream and spread through swampland into the Ite and Magdalena rivers.

EXPLORATION

INDONESIA'S Pertamina awarded production sharing contracts to Asamera (Tungkal) Ltd., British Gas Exploration & Production Ltd., and Indonesia's PT Suryaraya Teladan and extended for 20 years Mobil Exploration Indonesia Inc.'s PSC for its Offshore North Sumatra block. Asamera plans to spend about $35.5 million in 6 years on its onshore Tungkal block in Jambi Sumatra. BG with Indonesia's PT Sapta Patra Wisesa will explore the Muturi block in Irian Jaya, spending $50 million during the next 10 years. Suryaraya Teladan will spend $35.5 million in 6 years on an enhanced oil recovery project on the Benakat block in South Sumatra.

MINERALS MANAGEMENT SERVICE issued a call for nominations for its proposed Sale 158 covering the Gulf of Alaska-Yakutat area off southern Alaska. MMS identified 1,307 blocks covering about 7.2 million acres 3-70 miles offshore in 504,000 m of water it may offer (see map, May 11, p. 22). MMS will next prepare an environmental impact statement on the area.

WESTCOAST PETROLEUM LTD., Calgary, and Chieftain International Inc., Edmonton, signed exploration agreements with Fina Exploration Libya BV to earn 7.5% each in 3.9 million acres in Blocks NC 170, NC 171, and NC 172 in Libya's Sirte basin. The work commitment includes an extensive seismic program followed by a 12 well drilling program. The first well is to be drilled in first half 1993 and the rest by 1996. The agreement is subject to approval by Libyan National Oil Co. and the Libyan government.

DRILLING-PRODUCTION

SANTA FE DRILLING CO., Alhambra, Calif., accepted delivery of the $100 million Magellan harsh environment jack up from Far East Levingston Shipbuilding Ltd., Singapore. Magellan is rated for year round operations in 328 ft of water. Santa Fe said the addition gives it the world's biggest jack up fleet. The rig is destined for the U.K. North Sea.

CHINA'S Sichuan Petroleum Administration let a $1.3 million contract to Sproule Associates Ltd., Calgary, to evaluate 20 reservoirs in 15 fields. Servipetrol Ltd. and Porteous Engineering Ltd. will work with Sproule on the contract. Preliminary estimates place gas reserves in the fields at 4.8 tcf.

TECO COALBED METHANE INC., Tampa, acquired $18 million in interests from Taurus Exploration Inc., Birmingham, in two Alabama coalbed methane projects the companies are pursuing together. TECO purchased a 16% stake in the Cedar Cove joint project, making it 100% owner. TECO also increased its working interest to 51% from 44% in a project in the Black Warrior basin, committing to drill 40 more wells by yearend in partnership with Chevron U.S.A. Inc. at a cost to TECO of about $10 million. Taurus will remain operator of both projects.

VINTAGE PETROLEUM INC., Tulsa, acquired oil and gas leases in state waters in Panther Reef and Southwest Panther Reef fields of Calhoun County, Tex., from Texaco Exploration & Production Inc. for $5.2 million. Net production is about 165 b/d of oil and 2.5 MMcfd of gas, volumes Vintage believes can be significantly increased.

PETRO-HUNT CORP., Dallas, acquired working interests in 13 oil and gas wells and associated undeveloped leases in Wilson and Gonzales counties, Tex., from ARCO. All of the wells are horizontal Cretaceous Austin chalk producers operated by Petro-Hunt.

BARRETT RESOURCES CORP., Denver, will immediately begin drilling the first of 15 infill wells in southern Oklahoma's Red Oak field under a farmout from Amoco Production Co. The program is designed to develop gas reserves in Pennsylvanian Red Oak and Fanshawe sandstones in Latimer and LeFlore counties and cost Barrett about $7 million. Barrett will receive 99% of Amoco's 6.2-100% working interests in the wells. Amoco will retain an override until payout, after which it can convert the royalty to working interest.

MAI CONSULTANTS LTD., Epsom, U.K., began work with Tecnomare SpA to develop Deepsep, a deepwater seabed separator. A feasibility study will be complete by yearend, followed by detailed design, onshore testing, and subsea trials. Sponsors are Petroleos Brasileiro SA, Conoco (U.K.) Ltd., Elf U.K. Ltd., Japan National Oil Corp., the U.K.'s Offshore Supplies Office, and Babcock Energy Ltd.

STAN CORNELIUS CONSORTIUM, a group of investors headed by Stanley Preston Cornelius, Bambridge, Wash., is negotiating a joint venture agreement with a group including Uzbekneft, Uzbekgeologia, and Uzbekgeophisica to develop the Mingbulak oil discovery in Uzbekistan, but the agreement has not been signed by Uzbekneft, as incorrectly reported (OGJ, Aug. 3, p. 21). The Cornelius group has a concession agreement covering the area granting it the right to develop hydrocarbons.

TURKMENISTAN'S government said a model contract for a bidding round in western Turkmenistan (OGJ, June 8, p. 34) is ready for release and available from Wavetech Geophysical Inc., Denver. Companies may bid to jointly develop five producing and two nonproducing fields. Deadline for bid submission is Dec. 20.

RUSSIAN State Committee of Geology and Use of Natural Resources and Tomsk oblast administration said a model contract for a competitive bidding round in Tomsk oblast of western Siberia basin (OGJ, July 13, p. 24) is available through Wavetech. Deadline for submission of bids is Feb. 8, 1993.

ALTERNATE FUELS

DI INTERNATIONAL INC., Houston, and Mexico's Perfensa intend to form a joint venture to conduct geothermal drilling in Mexico and Central America. Perfensa has operations in Guatemala that would become part of the venture, DI/Perfensa Inc.

OESI POWER CORP., Portland, said the KS-8 geothermal well drilled by Puna Geothermal Venture at Puna, Hawaii, flowed about 300,000 lb/hr of geothermal fluid at a 90% steam cut and temperature of 585 F. OESI said the geothermal fluids contain about 0.1% H2S and 0.1% noncondensable gases, mainly CO2. The well is shut in to allow for hookup to a steam gathering system. OESI plans to deliver as much as 15,000 kw equivalent of steam to Hawaii Electric Light Co. when an operating permit is received.

TRANSPORTATION

PANARCTIC OILS LTD., Calgary, plans two crude oil shipments this season from its Bent Horn field on Cameron Island in the Arctic Islands. The first 153,490 bbl shipment left Cameron Island Aug. 20 aboard the MV Arctic tanker bound for a Petro-Canada refinery at Montreal. The tanker is to return for a second shipment Sept. 9. Panarctic planned two shipments in 1991 but was restricted to one because of heavy pack ice. Bent Horn shipments began in 1985 and will total about 1.9 million bbl after this year's operation.

CZECHOSLOVAKIA'S gas transportation company Transgas let a contract valued at more than $25 million to Dresser-Rand to supply four gas pipeline turbocompressor trains powered by 18,750 hp gas turbines. Two of the trains will be used in Kourim and two in Kralice.

SHARJAH CRESCENT PETROLEUM CO. agreed to supply 100 MMcfd of gas to Dubai Gas Co. (Dugas) via a $30 million, 90 km subsea pipeline under construction. It is to be complete by yearend. Gas will be processed at the Dugas plant in the Jebel Ali free zone, then supplied to Dubai Aluminum Co. and Dubai's electricity and water authority.

CANADA'S National Energy Board granted Westcoast Energy Inc., Vancouver, B.C., an average toll increase for 1992 of about 2.5%, substantially lower than Westcoast sought. NEB said Westcoast must pay refunds to customers who have paid higher tolls to date. NEB granted Westcoast an interim toll increase of 5% effective last Jan. 1. The company had asked for an increase of 6%. A 2.5% hike will give Westcoast toll revenues of about $354 million, $12 million less than it sought.

EMPIRE STATE PIPELINE, a planned 155 mile, 24 in. gas line from a point near Buffalo to Syracuse, N.Y. (OGJ, Aug. 10, p. 16), let a $500,000 contract to Mustang Engineering Inc., Houston, for right-of-way acquisition and permitting services near Buffalo. Construction is to be complete next spring. Empire State will transport as much as 270 MMcfd of Canadian gas.

PETROCHEMICALS

ARCO CHEMICAL CO. agreed in principle with Coastal Refining & Marketing Inc. to produce ethyl tertiary butyl ether at Coastal's 12,000 b/d Corpus Christi methyl tertiary butyl ether plant, under long term lease to ARCO. The agreement will allow flexibility to produce either MTBE or ETBE. A demonstration run of ETBE is planned by yearend. ARCO is studying development of ETBE flexibility at all its MTBE plants.

FINA OIL & CHEMICAL CO. closed the acquisition of the high density polyethylene business and related assets in Bayport, Tex., of Hoechst Celanese, a subsidiary of Hoechst AG (OGJ, July 13, p. 31 ). In another transaction, Hoechst Celanese purchased Fina's 26% interest in Cape Industries, Wilmington, N.C., bringing its ownership to 100%.

TEN WORKERS DIED Aug. 26 when ammonia gas leaked from a pipeline and exploded in the state owned National Fertilizer Ltd. complex in Panipat, India, 100 km from the northern state capital of Chandigarh. About 450 workers were in the complex at the time of the explosion. Agence France Presse reported the leak has been plugged, and repairs are in progress.

CHINA PETROCHEMICAL CORP. plans to build several large fertilizer and fiber production complexes in China's Xinjiang Uygur Autonomous Region during 1991-95. Plans include two complexes with capacity of 300,000 metric tons/year of synthetic ammonia, 520,000 tons/year of urea, and 60,000 metric tons/year of polyester. The program calls for establishing 19 large scale petrochemical complexes nationwide during the next few years intended to hike ethylene production to more than 3 million tons/year from 1.65 million tons/year.

RESEARCH

INDIA'S OIL INDIA LTD. and HRI Inc., Princeton, N.J., agreed to set up a pilot plant in India to conduct research on production of liquid fuels from coal, shale oil, and resid. The plant will use HRI's coal liquefaction and coal/oil processing technologies. U.S. Agency for International Development will provide $1.5 million in funds for the project.

COMMODITIES

SINGLE DAY TRADING of natural gas futures on the New York Mercantile Exchange exceeded 20,000 contracts for the first time Aug. 24, surpassing the previous record of 18,636 set last July 24. Nymex said the volume has climbed steadily since the contract was launched last Apr. 3, and the average trading volume for 1992 through Aug. 21 was 5,069 contracts/day. Nymex will launch a natural gas options contract Oct. 2 based on the futures contract.