PETROCHEMICALS
PETROQUISA, petrochemical subsidiary of Brazil's Petroleos Brasileiro SA, sold other minority shareholders its 30.98% interest in the -220,000 ton/year Polisul high density polyethylene plant at Triunfo, Rio Grande do Sul, Brazil. With the $55.4 million sale, the fourth petrochemical complex sale under Brazil's privatization program, Brazilian petrochemical group lpiranga Quimica SA owns a 60% interest in Polisul and Germany's Hoechst 40%.
MTBE MALAYSIA SDN. BHD., a unit of Malaysia's Petronas, expects to start up in October its $510.8 million methyl tertiary butyl ether plant at Gobeng, Malaysia. The plant has been commissioned and received its first shipment of methanol feedstock, 5,000 metric tons 'from Petronas' Labuan methanol plant. Butane and propylene feedstock for the MTBE plant will come by road from Petronas' Kertih refinery. MTBE Malaysia expects to produce 180,000 metric tons of MTBE this year and is targeting 300,000 tons/year.
REFINING
ARCO passed the 4 year mark in continuous run time at a fluid catalytic cracking unit at its Los Angeles refinery, a company record. The unit last went down for repairs in May 1988 and is now in its 51st month of continuously making product with no downtime. The unit previously had required maintenance turnarounds about every 3 years. Its next turnaround is scheduled next month.
EXPLORATION
OCCIDENTAL ANGOLA INC. and partners signed a production sharing contract with Angola's Sonangol covering the 600,000 acre onshore
Cabinda North block in the West African Salt basin (see map, Feb. 10, p. 36). The group agreed to a 3 year minimum work plan that includes 1,200 line km of seismic surveys, five wildcats, and three appraisal wells. Exploration is to begin in 1993. Oxy holds a 35% interest in the block. Partners are Teikoku 25%, Neste Oy 20%, and Sonangol 20%.
HARKEN ENERGY CORP., Dallas, received an association contract (covering about 350,000 acres in the Alcaravan area of Colombia's Llanos basin from slate owned Empresa Colombiana de Petroleos. The area is about 35 miles southeast of Cusiana field (see map, Feb. 10, p. 40). The contract calls for Harken to conduct seismic surveys and exploratory drilling the next 6 years, but Harken has the option to withdraw at the end of each year.
INTERNATIONAL PETROLEUM CORP. (IPC), Dubai, began seismic surveys on three onshore tracts in Libya's Sirte basin. A 190 line km survey will cover Blocks NC155 and NC156, to the east and south, respectively, of the Intisar area fields. Lasmo Grand Maghreb Ltd. 40% and Hardy Oil & Gas (U.K.) Ltd. 15% hold remaining interests. Another 320 line km is planned on IPC's 100% owned Block NC176 to delineate reef prospects for drilling in 1 993.
BRITISH PETROLEUM CO. PLC will begin exploration this month off Indonesia's Lombok Island in about 482 m of water under contract with state owned Pertamina, OPEC News Agency reported. BP plans to drill two wells this year and three wells in 1993 at an estimated cost of $12 million.
COMPANIES
CHIEFTAIN INTERNATIONAL FUNDING CORP., a unit of Chieftain International Inc., hopes to raise about $60 million (Canadian) via an offering of 2.76 million convertible preferred shares in the parent. Chieftain plans to use the funds to acquire producing leases in the U.S.
BP CANADA INC. paid back a $100 million loan (Canadian) from parent BP after securing a $100 million credit from the Royal Bank of Canada. BP Canada is completing another $100 million credit deal with banks. The loan payback is one of the final moves to independence for the Canadian unit. BP Canada plans to change its name, submitting a new one for shareholder approval by next year.
INDIAN OIL & NATURAL COMMISSION established the Institute of Petroleum Safety and Environment Management at Betul in Goa. It will promote setting safety, health, and environmental standards in petroleum operations.
DRILLING-PRODUCTION
SEVERE STORMS interrupted production from about 2,000 wells in northern China, causing a 182,500 bbl drop in production from Shengli complex Sept. 1-5. Nearly all the wells resumed production by Sept. 13. Shengli, China's second biggest producing complex after Daqing, produced about 670,000 b/d in first half this year.
WALTER INTERNATIONAL EQUATORIAL GUINEA INC.'S econd well in Alba field off Equatorial Guinea flowed 39.9 MMcfd of gas and 3,140 b/d of condensate through a 58/64 in. choke with 3,051 psi flowing tubing pressure from about 160 ft of pay. Total depth is 11, 487 ft. Alba began production late last year (OGJ, Jan. 6, p. 29). It is to deliver about 55 MMcfd of gas and 4,500 b/d of condensate to onshore facilities.
LASMO PIC'S 2 Purificacion appraisal well on the Espinol block in Colombia's Upper Magdalena Valley flowed at rates as much as 6,700 b/d of 32 gravity oil through a 1 in. choke. Lasmo will seek commercially for Purificacion field, discovered late last year (OGJ, Dec. 2, 1991, p. 32), with an eye to start-up in first quarter 1993. Sun Colombia Oil Co. holds a 33.3% interest in the block, and Ecopetrol can back in for 50%.
LASMO will begin producing about 20 MMcfd of gas from its 1 Guepaje wildcat on the Magangue license in Colombia's Lower Magdalena Valley by early 1993. The well flowed gas from three zones in a 270 ft interval. Ecopetrol began laying a pipeline to link the well with four gas turbine generators at Chinu, 50 km southwest of the field. Lasmo plans two appraisal wells in the next 6 months, one on the Magangue block, the other on the San Pedro block. Lasmo holds a 100% interest in both blocks.
PARKER & PARSLEY PETROLEUM CO., Midland, Tex., completed its 1992 Midkiff Unit development drilling program in Spraberry Trend Area of West Texas, increasing production to 4,000 b/d from the 1,900 b/d second quarter 1992 average. The company drilled 66 wells and plans another 66 wells in first quarter 1993 in the final phase of the program. Parker & Parsley holds a 65% working interest in the unit.
TEXAS RAILROAD COMMISSION issued a final order amending field rules for Keystone Ellenburger field in Winkler County, Tex., establishing a bonus gas allowable of 0.5 Mcf/bbl of produced water from Ordovician Ellenburger. TRC found merit in modeling results of Bass Enterprises Production Co., Fort Worth, and Chevron U.S.A. Inc. that showed production of large volumes of formation water would allow additional recovery of 450-480 bcf of gas and an added 6-42 million bbl of oil.
AMERICAN INTERNATIONAL PETROLEUM CORP., New York, said an independent petroleum consulting firm confirmed its Puli anticline prospect in Colombia's Middle Magdalena basin has total potential reserves of as much as 159 million bbl of oil on the 2,775 acre structure. The prospect is in the company's 46,000 acre Puli association contract area.
U.S. DEPARTMENT OF ENERGY is cosponsoring an offshore energy conference Nov. 9-11 in Bangkok to showcase U.S. firms' equipment, services, and practices. Attending will be representatives of Brunei, Myanmar, Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Philippines, Singapore, South Korea, Taiwan, and Thailand.
CODY RESOURCES INC., Denver, acquired Ultramar Oil & Gas Ltd., Houston, from Lasmo plc for $85 million, with closing due in mid-November. Ultramar has U.S. Gulf Coast production of 3,500 b/d of oil and 45 MMcfd of gas. Lasmo also plans to sell its 90% share of the Bright Star gas gathering system in East Texas for $15 million to an undisclosed buyer. Other U.S. developed and undeveloped leases are expected to raise $4 million.
MOBIL NORTH SEA LTD. received U.K. Department of Energy approval for its plan to develop Excalibur gas field in the North Sea, 60 km north of the Bacton, U.K., terminal. An unmanned platform in 22 m of water will be used, with production going 7.4 km to Lancelot field and on to Bacton. Production will start in October 1994. About 253 bcf of gas will be recovered during the field's expected 22 year life.
SCANA PETROLEUM RESOURCES INC., Houston, agreed to buy interests of Nerco Oil & Gas Inc., Vancouver, Wash., in Trimble field in the Salt basin area of Mississippi for about $32 million. The sale, to be completed next month, covers 19 producing wells, undeveloped acreage, and other facilities. Nerco holds a 95% working interest in the field, which has average gross production of 25 MMcfd of gas and 60 b/d of condensate.
LASMO NEDERLAND BV installed the topsides deck on its Markham gas field platform in Block J6 of the Dutch North Sea. The 3,500 ton deck includes processing, production, utilities, and accommodation units. Production, to begin in October, will be exported to Netherlands for sale there and in Germany (OGJ, Sept. 14, p. 30).
PHILLIPS PETROLEUM CO. NORWAY let a 70 million kroner ($12.7 million) design contract to Kvaerner AS, Oslo, to aid its plan to jack up two platforms in Ekofisk field in the Norwegian North Sea. Phillips conducted a similar project to counteract subsidence under six Ekofisk platforms in 1987. An 80 man design team will be based in Stavanger until 1994, when the jacking will take place.
PLAINS PETROLEUM OPERATING CO., Lakewood, Colo., agreed with KN Energy Inc., also of Lakewood, on gas prices for 1993 under a long term contract whereby KN will pay Plains $1.80/MMBTU at the wellhead for the first 6 months, and second half prices will be subject to redetermination in first quarter 1993. Both companies agreed the wellhead price will be no less than $1.80/MMBTU. For 1992 Plains receives $1.65/MMBTU during April-October and $1.95/MMBTU the rest of the year.
HALL HOUSTON OIL CO. hired OPI International Inc. to remove a damaged four pile jacket and the deck of an unmanned platform in 128 ft of water on Mustang Island Block 781 in the Gulf of Mexico. In an accident unrelated to Hurricane Andrew, a passing merchant vessel struck the platform. The DB Ocean Builder derrick barge removed the 700-800 ton jacket and deck, and divers have plugged the two pipeline risers connected to the platform. A new four pile jacket and deck are to be installed later this year.
ENERGY INFORMATION ADMINISTRATION estimated proved U.S. dry gas reserves dropped 2.284 tcf in 1991, not 2.284 bcf as incorrectly reported (OGJ, Sept. 14, p. 47). Dry gas discoveries, not reserves, totaled 7.542 tcf, and revisions were 6.827 tcf, not 6.827 bcf.
LNG
FEDERAL ENERGY REGULATORY COMMISSION approved settlements filed by Panhandle Eastern Corp. units Panhandle Eastern Pipe Line Co. and Trunkline LNG Co. resolving all long standing customer issues about the corporation's liquefied natural gas project, Trunkline's 1987 rate case, and Panhandle Pipe Line's natural gas supply arrangements with Trunkline (OGJ, July 27, p. 52). If there are no requests for rehearing the FERC order will become final Sept. 2.
TRANSPORTATION
THAI PETROLEUM PIPELINE CO. LTD. let a contract valued at about $50 million to Saipem SpA to lay part of a refined products pipeline from Sriracha to Saraburi, Thailand (OGJ, Jan. 6, p. 29). The project includes laying two of three sections of the system, which will be on line by July 1993. The line will be part of the Bongkot-Erawan-Khanom offshore gas system.
CASTLE ENERGY CORP., Blue Bell, Pa., agreed with ARCO and two of the latter's units to buy a 77 mile intrastate pipeline, several gas contracts, and interests in about 100 producing oil and gas wells for about $128 million. The pipeline and wells are in Rusk County, Tex., and proved producing reserves associated with the interests are estimated at more than 19 bcf of gas and 100,000 bbl of condensate. The deal is to close by mid December.
PETROLEOS DE TELA SA, Honduras, secured a $6.5 million loan from Commonwealth Development Corp., London, to help finance a $10 million storage terminal near San Lorenzo on the Honduras Pacific coast. Ten tanks for gasoline, kerosine, diesel fuel, aviation fuel, and fuel oil will have a combined capacity of 392,000 bbl. Start-up is planned for January 1993.
BHARAT PETROLEUM CORP. LTD. commissioned a 13.9 million bbl products storage terminal at Cochin, India, and received government approval to lay a 230 km products pipeline from Bombay to Manmad.
NOVA CORP., Calgary, restored full service on its Alberta gas pipeline system after completing repairs to a damaged turbine at its Schrader Creek, Alta., compressor station (OGJ, Sept. 14, p. 36).
COGENERATION
TRANSCO POWER CO., Houston, agreed to acquire a 50% interest in Oyster Creek Ltd., an affiliate of Destec Energy Inc., Houston, that is building a $419 million, 424,000 kw cogeneration plant near Freeport, Tex. Subject to regulatory approval, affiliates of Destec will acquire 50% interest in Transco Power affiliate Hartwell Energy LP, which is developing a $156 million, 300,000 kw, gas fired power plant in Hart County, Ga. The Hartwell project is to start up in first quarter 1994, the Oyster Creek project in third quarter 1994.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
