INDUSTRY BRIEFS
GOVERNMENT
JAPAN'S Ministry of International Trade & Industry presented a plan to the Vietnamese government for development of Cam Ranh Bay, south of Nha Trang on Viet Nam's east coast. Nikkei Weekly, Tokyo, said the harbor and airport facilities of the former U.S. naval base offered the most advanced infrastructure in the country. Refineries and petrochemical plants could be established by 2010.
EXPLORATION
HADSON ENERGY RESOURCES CORP. unit Hadson Pacific Pty. Ltd. reports the 1 Nebo wildcat off Western Australia flowed 1,840 b/d of 42 gravity oil through a 1/2 in. choke from a 12 ft zone of Jurassic sandstone pay at 8,742 ft. The discovery, 100 miles offshore on the Beagle subbasin's permit area WA-225-P, is the first well to test oil from the relatively unexplored northeast extension of the Carnarvon basin. Participants include operator Kufpec Australia Pty. Ltd. 33 1/3%, Mobil Exploration & Producing Pty. Ltd. 51 2/3%, and Hadson 15%.
NORSK HYDRO AS sponsored a nonexclusive 26,000 line km aeromagnetic survey of the Voring basin in the Norwegian Sea by Simon Petroleum Technology Ltd., Llandudno, U.K. Simon said hydrocarbon potential may be considerable, although no drilling has been carried out.
PRECISION SEISMIC INC., Houston, and Geoteam Exploration Ltd. AS, Oslo, released two multistreamer, multi-source, 3D seismic vessels to work in the North Sea. MV Ocean Explorer, a 269 by 59 ft craft with an 1 8 ft draft, can tow as many as nine airgun source arrays and deploy five digital streamers, each more than 4,000 m with sample rates of 1, 2, and 4 ms on 480 channels. MV Nordic Explorer, of similar size and shape, is equipped with data acquisition, source, and positioning features nearly identical to Ocean Explorer's.
MOBIL CORP. unit Mobil Producing Nigeria Unlimited signed a production sharing contract with Nigerian National Petroleum Corp. (NNPC) calling for Mobil to explore 565,000 acre Block OPL 221 off Nigeria. Fifty miles offshore and 10 miles southwest of current Mobil production, it lies in 600-3,000 ft of water. Geologic and geophysical work will start soon. Operator Mobil holds a 40% interest in the joint venture, NNPC 60%.
TOTAL CANADA OIL & GAS LTD., Calgary, reported a potential oil and gas discovery in the Moose Mountain region of Alberta, about 30 miles west of Calgary. The well is in the Kananaskis area, where environmental groups have opposed increased drilling. Total said the 9,900 ft well has a potential 231 ft pay zone on the basis of initial tests. Testing has been postponed due to seasonal restrictions. Total holds a 33% interest in the well, in which Husky Oil Ltd., Calgary, is operator.
LNG
A JOINT VENTURE in which Qatar General Petroleum Corp. holds a majority interest let a 160 billion yen ($1.4 billion) contract to Chiyoda Corp., Tokyo, to build a 4 million metric ton/year natural gas liquefication plant to tap reserves in giant North field off Qatar. The plant is scheduled for completion in 1977, producing LNG for sale to Chubu Electric Power Co. of Japan (OGJ, Feb. 8, p. 33).
DRILLING-PRODUCTION
SCEPTRE RESOURCES LTD., Calgary, agreed to buy Gulf Canada Resources Ltd.'s oil and gas leases in Southeast Saskatchewan. The $65 million (Canadian) trade includes 16 million bbl of proved reserves and 5,000 b/d of mainly light, sour crude. Closing is scheduled in July. The deal hinges on regulatory approvals, and certain acreage is subject to right, of first refusal by Gulf partners.
TENNECO GAS PRODUCTION CORP. unit Tenneco Ventures and Midcon Offshore Inc., both of Houston, and Taurus Exploration U.S.A. Inc., Birmingham, completed their purchase of Marathon Oil Co.'s working interests in five gas producing blocks off Texas and Louisiana in the Gulf of Mexico for an undisclosed price. They bought Marathon's holdings in Vermilion Block 329, High Island Block A-568, Mustang Island Block 754, East Cameron Block 316, and West Cameron Block 589.
PENNZOIL EXPLORATION & PRODUCTION CO., Houston, will auction 400 oil and gas leases in Texas, Oklahoma, New Mexico, Louisiana, Kansas, Alabama, Arkansas, and Mississippi. The sale is scheduled June 22 in Houston at the Doubletree Hotel on Post Oak.
BERKLEY PETROLEUM CORP., Calgary, acquired 13 producing and 24 nonproducing leases in Alberta from Texaco Canada Petroleum Inc. for $10.66 million (Canadian). The package consists of about 29 bcf of proved and probable gas reserves, 650,000 bbl of proved gas liquids, and 200,000 bbl of proved oil reserves. Berkley plans development on selected leases and an exploration program during 1993-94.
ARCO BRITISH LTD. took delivery of a 3.45 km control umbilical from Multiflex U.K. Ltd., Edinburgh. The umbilical will be used for what ARCO says will set a North Sea mark for longest subsea tieback, when 250 bcf Orwell gas field in Block 50/26a is linked to Thames field platform in Block 49/28.
CHEVRON U.K. LTD. let a 1.5 million ($2.3 million) contract to FES International Ltd., Biggin Hill, U.K., for a refrigeration package to be used on the Central Ninian platform in the North Sea. The package will separate LPG from gas produced from Strathspey satellite field, due on stream in the fourth quarter (OGJ, Apr. 12, p. 32).
CHEVRON U.K. took delivery of pump sets worth 700,000 ($1.05 million) on the Central Ninian platform. Two 120 cu m/hr capacity pumps will move LPG from the platform to Sullom Voe terminal, Shetland Islands.
PIPELINES
SUNSHINE INTERSTATE TRANSMISSION CO. (Sitco) filed for a permit from the Federal Energy Regulatory Commission to lay a 170 mile gas pipeline to serve Mississippi's southern coast, Alabama, and Florida. The project will start at a link with Chandeleur Pipeline Co. near Pascagoula, Miss., and move gas to delivery points in Escambia and Okaloosa counties, Fla. There Sitco will hook into SunShine Pipeline Co., a proposed 515 mile pipeline to be built in Florida.
COLUMBIA GAS SYSTEM INC. effective July 1 will combine its nonregulated gas marketing operations into Columbia Energy Services Corp. (CESC), Pittsburgh, formerly Inland Gas Co. CESC will tailor gas supply packages, arrange deliveries, and expand other short term and long term supply and fuel management services for affiliated and nonaffiliated distribution companies, independent power producers, and large industrial and commercial gas end users on and off Columbia's system.
U.S. ARMY CORPS OF ENGINEERS BUFFALO DISTRICT issued a permit to the proposed Empire State Pipeline project, clearing the way for the start of construction and a Nov. 1 start up. Empire is a 156 mile gas pipeline to Syracuse from Grand Island, N.Y. Capacity at start up is pegged at 200 MMcfd, increasing to 460 MMcfd by January 1995. It will move gas to utilities in western and Central Upstate New York. Project sponsors are units of Coastal Corp., Westcoast Energy Inc., and Rochester Gas & Electric Corp.
COGENERATION
ENERGY NATIONAL INC., a unit of Pacific Generation Co., Portland, Ore., chose Bechtel Power Corp. to negotiate an engineering, procurement, and construction contract for a $250 million cogeneration plant in the San Francisco Bay area's Contra Costa County. The 50 MMcfd capacity gas fueled plant was approved unanimously Apr. 26 by the California Energy Commission. When it starts up in late 1995, the Crockett Cogeneration Plant will produce steam for C&H Sugar Co.'s Crockett, Calif., processing operation as well as 240 million kw of electricity for sale to Pacific Gas & Electric Co.
GAS STORAGE
STEUBEN GAS STORAGE CO. is holding an open season through June 18 for storage services at its proposed Thomas Corners complex in Steuben County, N.Y. When the nearly depleted Thomas Corners gas field is converted to a storage operation, it will have a 5 bcf capacity and 50 MMcfd peak withdrawal rate. Steuben expects to start injecting gas at Thomas Corners in spring 1995 in preparation for withdrawals during winter 1995-96. Receipt and delivery of storage volumes will be made at Steuben's link with CNG Transmission Co. near Woodhull, N.Y.
PETROCHEMICALS
MOBIL CHEMICAL CO. started up a $12 million specialty chemicals reactor in Edison, N.J., to help meet demand for lube additives and synthetic fluids. The 190 bbl reactor has a production capacity of 48,000 bbl/year. The new unit is the second reactor system built at Mobil Chemical's Edison plant since 1989.
ALTERNATE FUELS
INDIANA'S Utility Regulatory Commission approved an application by PSI Energy Inc., Plainfield, Ind., to repower an existing unit and build a coal gasification plant at PSI's Wabash River power station in West Terre Haute, Ind. Destec Energy Inc., Houston, will build, own, and operate the nominal 270 million kw coal gasification/combined cycle plant, which will be fueled with high sulfur Indiana coal. An agreement among Destec, PSI, and U.S. Department of Energy allows for DOE funding of the project of as much as $198 million.
COMPANIES
SHEFFIELD GAS PROCESSORS INC., a unit of Sheffield Exploration Co., Denver, closed its purchase of gas gathering systems in Kansas and Oklahoma from two units of Sunrise Energy Services Inc., Dallas. The trade covers 11 gathering systems in South Central Kansas and southern Oklahoma, a partially completed Kansas gas storage field, and a 4.5 MMcfd gas processing plant in Oklahoma. The systems contain 390 miles of gathering lines with combined throughput of 13 MMcfd from 330 wells.
PARKER & PARSLEY PETROLEUM CO., Midland, Tex., reached an agreement with Union Pacific Resources Co., Fort Worth, that's expected to settle all outstanding legal action between them. Under the terms, Parker & Parsley will sell its interest in a gas processing plant in Carthage. Tex., and in certain related gas distribution and pipeline facilities to Union Pacific for $15 million cash and a $28 million unsecured note amortizing over 7 years. Closing is expected June 30.
PANCANADIAN PETROLEUM LTD., Calgary, plans to sell wholly owned subsidiary Langevin Resources Ltd. Langevin holds leases in Alberta, with minor holdings in Manitoba, Saskatchewan, and British Columbia with combined reserves of 4.2 million bbl of crude oil and gas liquids and 220 bcf of gas. Langevin produced 2,000 b/d of oil and gas liquids and 28 MMcfd of gas during 1992. PanCanadian is seeking nonbinding offers for Langevin by June 30.
INTENSITY RESOURCES LTD., Calgary, will spend more than $20 million (Canadian) on capital projects in 1993 and participate in 115 wells with an average net interest of 86%. The company said its exploration and development program has been successful, and activity has been increased from an initial estimate of 60 wells for 1993.
SHELL U.K. EXPLORATION & PRODUCTION will not be prosecuted following an inquiry into a helicopter crash on Cormorant Alpha platform in the North Sea last year in which 11 men died. The pilot was blamed for the crash, although Shell Expro was found to have broken its operational rules for standby vessel placement during takeoff. U.K.'s Crown Office said prosecution would not be in the public interest.
INTERNATIONAL COLIN ENERGY CORP., Calgary, agreed to buy all issued shares of privately owned Olympia Energy Ventures Ltd. for $44.5 million (Canadian). Olympia's assets, mostly in Northwest Alberta, include four operated gas processing plants, production of 415 b/d of oil and gas liquids and 14 MMcfd of gas, and 36,000 net acres of land.
MERRILL LYNCH last month forecast Natural Gas Clearinghouse (NGC) survey average prices of $2.05/Mcf in 1993 and $2.15/Mcf in 1994. That was not an NGC forecast, as incorrectly reported (OGJ, May 24, Newsletter). NGC does not predict natural gas prices.
REFINING
PHIBRO ENERGY U.S.A. INC. restarted the 25,200 b/cd fluid catalytic cracker at its 56,700 b/cd Krotz Springs, La., refinery after refitting the unit with a feed injection system developed by Mobil Oil Corp. and M.W. Kellogg Co. The injection system's relatively low oil feed pressure requirement allowed installation in a shorter time and at less cost than would have been possible with a more extensive modification and is expected to reduce unit operating costs.
CHEVRON U.S.A. INC. shut down its 65,000 b/cd El Paso refinery after a series of explosions June 2 caused a three alarm fire. At presstime, what sparked the fire was unknown, but the accident reportedly occurred when an employee tried to stop a gasoline leak from a ruptured pipe linking a 20,000 b/cd crude distillation unit to a 23,000 b/cd catalytic reformer. Most of the refinery, including a 45,000 b/cd crude unit, appeared undamaged and operable.
Copyright 1993 Oil & Gas Journal. All Rights Reserved.