A COMBINE made up of Royal Dutch/Shell Group, Mitsubishi Corp., C. Itoh & Co., and International Finance Corp. will form Petrochemical Industries of Indonesia to operate a proposed $1.95 billion petrochemical complex in Indonesia that is to produce 375,000 metric tons/year of ethylene and 220,000 tons/year of propylene, Tokyo's Nihon Keizai Shimbun newspaper reported. Construction is to begin later this year, and completion is scheduled for 1996.
SOUTHEAST CHINA'S largest urea plant, a 110,000 metric ton/year unit at Sanming Chemical Works in Fujian province, started trial production. The plant will help increase total urea output in the province to 260,000 tons/year, Beijing's China Daily reported. The province spends about $20 million/year on imports to meet demand of 300,000 tons/year.
SPILLS
BECHTEL CORP., acting on behalf of Kuwait Oil Co., let contract to TR Oil Services, Cheshire, England, to supply 8,000-10,000 drums of demulsifier valued at $2.5 million to treat lakes of crude spilled by Kuwaiti wells sabotaged by Iraqi forces last year (OGJ, Apr. 6, p. 32). Bechtel experienced problems treating the high salt content spilled oil, and TR's chemical has improved crude recovery processing. The demulsifier will be manufactured at TR's plant in Saudi Arabia.
EXPLORATION
AMOCO CORP. acquired a 30% interest in three exploration blocks in Yemen operated by a unit of British Petroleum Co. plc. Subject to oil ministry approval, Amoco will join BP 60% and Furnet Investment 10% in onshore Shabwa Blocks 7 and 8, and BP in offshore Block 23.
CHINA'S Ministry of Geology and Mineral Resources is stepping up exploration in Tibet with plans to spend about $36 million through 1995 in the northern part of the autonomous region. China Daily reported geologists will concentrate exploration on the Yangbajain basin and neighboring areas.
PHILLIPS PETROLEUM CO. BOLIVIA signed an operations contract with Bolivia's Yacimientos Petroliferos Fiscales Bolivianos covering the 3.5 million acre Curahuara de Carangas block in the northern Altiplano of western Bolivia. Phillips plans to acquire seismic data and conduct other geological and geophysical surveys during an initial 2 year period. Phillips will then have the option to begin a drilling program.
ASHLAND EXPLORATION INC. and Santa Fe Energy Resources, both of Houston, signed a reconnaissance contract with Morocco's state owned National Bureau of Petroleum Exploration and Exploitation (Onarep) for exclusive rights to conduct geological and geophysical operations on about 1.5 million acres off Agadir, Morocco. Seismic data acquisition is to begin later this year. Ashland will operate the 50-50 venture,
AMERADA HESS LTD.'S 205/26a-4 wildcat in the Atlantic Ocean, west of the Shetland Islands, flowed at a maximum rate of 8,436 b/d of 28 gravity oil with a GOR of 85:1. The well was tested with a submersible pump. Partners with Amerada 59.98% are ARCO British Ltd. 23.89% and Aran Energy Exploration Ltd. 16.13%. The group plans to move the High Seas Driller rig 2 km northeast to drill appraisal well 206/26a-5.
ARGENTINA'S Bridas Saipec was awarded exploration and development rights in Turkmenistan in the first competitive bidding round for the republic (OGJ, May 11, p. 37). It was incorrectly reported that there were no bidders for acreage in Amu-Daria basin and South Caspian basins in Turkmenistan's first bidding round (OGJ, June 1, p. 34).
SEAGULL ENERGY CORP., Houston, 1 OCS-G-8662 wildcat in 25 ft of water on Vermilion Block 68, about 60 miles south-southwest of Lafayette, La., flowed a combined 18.7 MMcfd of gas and 290 b/d of condensate through variable chokes with flowing tubing pressures of 2,978-3,667 psi from 70 net ft of sand in four zones at 8,698-10,443 ft. Operator Seagull Energy E&P Inc. owns a 50% interest in the well and Ashland Exploration Inc. and Samedan Oil Corp. 25% each.
COMPANIES
DELAWARE SUPREME COURT upheld a lower court decision awarding $120 million to about 1,000 former holders of about 1 million shares of Shell Oil Go. stock. The court affirmed a 1990 award of $71.20/share to stockholders, who had asked for an appraisal of the stock's value. As part of Shell's 1985 merger with Royal Dutch/Shell Group, shareholders could accept a $60/share offer or seek court appraisal. Plaintiffs' attorneys said the fair value was $89/share, while Shell quoted $55/share.
LASMO PLC is selling 10.1 million shares, about half its interest, in Lasmo Canada Inc. owned by Lasmo International Ltd. and Lasmo Oil Development (Canada) Ltd. in a deal arranged by Gordon Capital Corp. for $83.2 million (Canadian). Proceeds from the sale will go to reduce debt.
RED EAGLE RESOURCES CORP., Oklahoma City, will lay off 275 Oklahoma employees representing a payroll of more than $7 million/year. Red Eagle's United Drilling Co. and Talon Trucking Co. units will be scaled back in size to meet only the needs of Red Eagle's exploration and production company, Cimmarron Operating Co. Eight of United's 11 drilling rigs and all surplus trucking equipment will be sold at an auction Sept. 16-17 in Oklahoma City.
COPLEX RESOURCES NL of Tasmania, bidding for Tuskar Resources plc, Dublin (OGJ, Apr. 20, p. 41), said it has ensured full operating control of Tuskar's Colombian venture following an agreement with Dyas BV, holder of a 10% stake in the Rubiales and Pirili licenses. Coplex holds 54% interest in the licenses through a 60% stake in Tuskar International Ltd. Under the new agreement, Dyas has the option to acquire a further 9% interest from Tuskar International for $11.25 million.
DRILLING-PRODUCTION
CHEVRON CORP. resumed production of 54,000 b/d in Malongo oil field in Angola's Cabinda enclave May 22 after a crude pipeline ruptured and caught fire, forcing Chevron to shut down operations (OGJ, June 1, p. 44). Full production of about 75,000 b/d is to be restored in about 4 weeks.
MOBIL NORTH SEA LTD.'S 48/17a-L1Z horizontal development well in the U.K. North Sea's Lancelot gas field flowed 47 MMcfd through a 1 in. choke. The well was drilled to total vertical depth of 8,400 ft, then horizontally more than 3,000 ft. It is the first of four development wells planned in the field, due to begin production from an unmanned platform in July 1993.
EAST CHINA'S Shengli oil field in Shangdong province is the site of the country's longest horizontal radial. Xinhua News Agency reported the well was drilled to 2,390 m, and a 901 m horizontal radial was kicked off at 1,955 m. The vertical part of the well was then deepened to 2,947 m. Test results were not reported.
IEOC CO. INC., an Agip SpA unit, started sale of production from El Qara gas field in Egypt's onshore northern Nile Delta region, about 100 miles north of Cairo, at a rate of about 112 MMcfd of gas and 3,200 b/d of liquids. Production, to increase to a contract volume of 150 MMcfd of gas and 4,000 b/d of liquids, is sold to Egyptian General Petroleum Co. under a sales contract for the life of the field. The field includes a gas processing plant and eight wells.
INTERNATIONAL COLIN ENERGY CORP Calgary, will pay Imperial Oil Ltd. about $16 million (Canadian) for interests of 65% in Deer Mountain unit, 46% in East Swan Hills unit, 32% in Inverness unit, and some smaller leases in northern Alberta. Colin also plans to buy Saskatchewan Oil & Gas Corp.'s average 31% stake in 40 producing oil wells in the Kidney area of northern Alberta for about $15.6 million. The deals will boost Colin's net oil production to 4,000 b/d from 2,300 b/d and its leasehold to 102,000 acres from 60,000 acres.
PLAINS PETROLEUM OPERATING CO., Lakewood, Colo., agreed to buy interests in 65 producing wells in 16 fields in the Powder River basin of Northeast Wyoming from an undisclosed seller for about $12 million. Plains expects the deal to increase its average oil production by about 940 b/d. Purchase is to close by Sept. 30.
CONVEST ENERGY CORP., Houston, made oil and gas price swap transactions locking in prices for about 50% of its oil and 50% of its spot market natural gas sales for the next 12 months. An agreement with Morgan Stanley Capital Group Inc. calls for Convest to settle on 22,000 bbl of oil each month based on the average daily closing price for the New York Mercantile Exchange crude futures contract that expires that month. Under an agreement with Banque Paribas, Convest will settle on 65,000 MMBTU each month based on the average closing price the final 3 trading days of Nymex's current month natural gas futures contract.
CHEVRON U.K. LTD. let contract to Amec Offshore Development Ltd. for hookup and commissioning of the North Alba platform in the U.K. North Sea. The contract includes connecting and bringing into operation topsides modules after installation in early summer 1993. Production from the North Alba platform is to start in January 1994 and peak at 60,000-70,000 b/d.
VINTAGE PETROLEUM INC., Tulsa, plans to buy certain oil and gas reserves mainly in Louisiana, Mississippi, and Texas from Texas Crude Exploration Inc., Houston, for $11.3 million. Net production from the leases averages about 160 b/d of oil and 6.3 MMcfd of gas. Vintage was scheduled to assume operations June 1.
EXPORTS-IMPORTS
LASMO NEDERLAND BV will be the first exporter of gas from the U.K., following signing of a treaty by British and Dutch governments allowing development of Markham field in the North Sea. It is the first development covering reserves that cross the U.K.-Netherlands line. For development to proceed, both governments had to agree on the field development plan, allocation of reserves, and other issues, Gas will be sold to Gasunie in Netherlands and Wintershall AG for use in Germany.
PIPELINES
IRAQ repaired its key north-south pipeline, damaged during the Persian Gulf war, enabling it to transport crude from its northern Kirkuk fields to the southern oil port terminal at Basra. From there it can be exported once the United Nations trade embargo on Iraq is lifted.
ATTCO PIPELINE CO., a unit of Associated Natural Gas Corp., Denver, agreed to buy Mobil Pipe Line Co.'s southern Oklahoma and North Texas crude oil systems, including about 590 miles of crude gathering line and 610,000 bbl of crude storage currently handling 14,800 b/d. After closing, Attco's and Associated's system will total more than 900 miles of crude pipeline and 800,000 bbl of storage handling more than 35,000 b/d.
WESTCOAST ENERGY INC., Vancouver, B.C., received approval from Canada's National Energy Board to lay 39.2 miles of 10 in. gas pipeline on the Fort St. John gathering system in Northeast British Columbia (OGJ, Mar. 9, p. 42). The Tommy Lakes line will move raw gas to Westcoast's Jedney pipeline for delivery to the company's McMahon gas processing plant at Taylor, B.C. It will extend north from the Bubbles compressor station on the Fort St. John system to a tie-in in the eastern segment of Tommy Lakes field. Project cost is about $15.8 million (Canadian).
TANKERS
ISHIKAWAJIMA-HARIMA
HEAVY INDUSTRIES CO. let contract to Sumitomo Heavy Industries Ltd. to provide shipbuilding technology for liquefied natural gas carriers. The two will cooperate in getting orders, forming the third group of Japanese LNG tanker builders. Mitsubishi Heavy Industries Ltd., Kawasaki Heavy Industries Ltd., and Mitsui Engineering & Shipbuilding Co. are one group, and NKK Corp. and Hitachi Zosen Corp. are the other combine. Kyodo News Service reported the three groups will compete for LNG tanker orders valued at more than 300 billion yen ($2.35 billion U.S.) from Qatar and United Arab Emirates this year.
SAUDI ARABIAN MARKETING & REFINING CO. (Samarec) put into service the $73 million Berge Clipper liquefied petroleum gas tanker, launched from the NKK shipyard at Tsu, Japan. The third LPG tanker chartered by Samarec from Bergesen AS, Oslo, it has a 78,000 cu m capacity. It carried a shipment of LPG from Ras Tanura, Saudi Arabia, to Europe on its maiden voyage, delivering half its cargo at the French port of Lavera and the other half at a Texaco Inc. LPG terminal in Pemrock, England.
REFINING
KOCH REFINING CO., Wichita, let contract to Foster Wheeler U.S.A. Corp. to engineer, procure, and provide construction assistance for a 35,000 b/d delayed coker at its 125,000 b/cd Corpus Christi refinery. The project is to be complete in late 1994.
GULF OIL GB selected UOP's Penex and Molex processes for octane upgrading of light naphtha at its Milford Haven, Wales, refinery. The product will be used as a blending agent in Gulf's gasoline pool. The units are to be on stream in late 1993. The Penex and Molex units are designed to process 12,500 b/d and will increase the research octane number of light naphtha by about 17.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
