INDUSTRY BRIEFS

PIPELINES

Repair work began

Jan. 25 on a 300 m section of a gas pipeline in the Marneuli region of Georgia that exploded Jan. 20, It is the only gas pipeline in the area, and Armenia's 176.5 MMcfd of gas supplies were cut off. Armenia accused Azerbaijan of blowing up the pipeline, [tar-Tass reported. Workers plan to divert flow to a temporary pipeline and have the main line restored by mid-February.

Conoco Inc.

received approval for a 24,000 b/d expansion of its Cut Bank-Billings, Mont., crude pipeline to supply its refinery and an Exxon Corp. refinery at Billings and the Farmers Union Central Exchange refinery at Laurel, Mont. The expansion will boost throughput to about 100,000 b/d, with most added capacity for heavy oil. Conoco processes about 47,000 b/d at its Billings plant. Nearly 70% of that volume is heavy crude.

Southern California Gas Co.

(Socalgas) let contract to Norton Chemical Process Products Corp., Akron, to provide four NOx emission removal systems for its $30 million Wheeler Ridge pipeline compressior station. Socalgas started construction on the station in mid-January, and it is to be fully on line by yearend. Norton said its system delivers 95% NOx removal in a one step process and is the first gas turbine selective catalyst reduction application to eliminate water injection in the gas turbine to control NOx emissions.

PETROCHEMICALS

Pequiven SA

and Agip Petroli unit Ecofuel plan a $360 million methanol/methyl tertiary butyl ether complex at Jose, eastern Venezuela. Snamprogetti and Tecnoconsult will be primary contractors for the Supermetanol project, which will start up in 1995 with a combined methanol/MTBE capacity of 670,000 metric tons/year. It will adjoin the 500,000 ton/ year Pequiven/Ecofuel MTBE plant at Jose, which will take 25% of Supermetanol production.

Saudi Methanol Co.

(Ar-Razi) produced 1.4 million metric tons/ year of methanol in the first year of expanded operation at its Al-Jubail complex. An expansion completed in April 1992 doubled nameplate capacity to 1.2 million tons/year. The increase in production from the Saudi Basic Industries Corp. (Sabic) unit is likely to boost Sabic's total methanol output to more than 2 million metric tons/year for 1992. Sabic unit National Methanol Co. in 1992 produced 1 million metric tons of methanol by Dec. 14 (OGJ, Jan. 18, p. 29).

EXPLORATION

An Occidental Petroleum Corp.

unit will conduct on site work in Namibia under an agreement with Brilund Ltd. unit Etosha Petroleum, then will have until May 1 to acquire an assignment to explore Etosha's 35 million acre concession. Oxy is to acquire 100% interest in the area for $286,000 and drill one wildcat by June 30. Etosha is to receive added payments of as much as $300,000 if Oxy continues after drilling the first well. Oxy will hold all rights to discoveries, with Etosha receiving a 4% overriding royalty interest and as much as $2 million.

Agip SpA's

1 Cerro Falcone wildcat flowed 600 b/d of 36 gravity oil in southern Italy's Potenza province. It's the latest in a string of strikes in the area, including discoveries by Agip affiliate Petrex at Monte Alpi and Costa Lucana. Interests are held by Agip 40%, Enterprise Oil Exploration Ltd. 55%, and Fiat Rimi 5%.

REFINING

Turkish Petroleum Refineries Corp.

(Tupras) let a turnkey contract valued at more than $300 million to Snamprogetti-Tekfen, a joint venture of Snamprogetti SpA and Turkey's Tekfen Construction & Installation Co., to construct a hydrocracking complex at Tupras' Izmit refinery. The project includes a 23,000 b/d unicracker as well as upstream and downstream process units. The complex is to start up by mid-1996.

Ultramar Inc.

will pay $48,000 and Mobil Corp. $29,411 in penalties to settle separate civil complaints alleging violations of the Clean Air Act at their refineries in southern California. Environmental Protection Agency also issued a complaint seeking penalties of $50,000 from Powerine Oil Co., Santa Fe Springs, Calif., for similar violations. The alleged violations relate to installation, operation, or reporting on continuous emissions monitoring systems.

Tesoro Alaska Petroleum Co.,

Anchorage, settled its dispute with Alaska that arose out of provisions in contracts with the state that required Tesoro to pay Alaska added retroactive amounts if the state prevailed in its royalty suit against North Slope producers. Tesoro agreed to pay the state $10 million and make variable monthly payments for 9 years based on the volume of feedstock processed at its 72,000 b/d Kenai refinery. The state claimed royalty oil it sold Tesoro and others was undervalued.

Phillips Petroleum Co.

agreed to license Chevron Chemical Co.'s Aromax catalytic reforming technology for use by Phillips Puerto Rico Core Inc. in a plant at Guayama, P.R. The Aromax technology is designed to improve feedstock economics and product yields over conventional reforming. Chevron is building a $250 million benzene plant at its Paseagoula, Miss., refinery using Aromax technology (OGJ, Feb, 24, 1992, p. 32).

United Refining Co.,

Warren, Pa., let contract to TPA Inc. to provide engineering, procurement, and fabrication services for sulfur processing units to be installed at its 64,600 b/d Warren refinery. New units include a 60 long ton/day Resulf-10 unit with emissions of less than 10 ppm H2S for tail gas treating. The units are designed for modular construction.

DRILLING-PRODUCTION

Norway's

Den norske stats oijeselskap AS claimed a world record 23,917 ft for extended reach drilling with its 33/9-C2 water injection well in Statfjord oil field in the Norwegian North Sea. It was drilled to 28,743 ft measured depth from Statfjord Platform C at a cost of 140 million kroner ($20.9 million), said by Statoil to be about one fifth the cost of drilling the hole with a mobile rig at the bottomhole location.

Statoil

awarded Kvaerner AS, Oslo, a 300 million kroner ($45 million) contract for postmating hookup of the Sleipner A platform topsides and gravity base structure (GBS). The contract also covers completion of the platform in the field in June. The GBS is a replacement for the original structure, which sank during a submersion test (OGJ, Sept. 2, 1991, p. 30).

ARCO

and Phillips Petroleum Co., 60-40 partners, plan to develop their Sunfish oil and gas discovery in Alaska's Cook Inlet (OGJ, Nov. 4, 1991, p. 39). The decision follows drilling of their 1 North Foreland confirmation well, which flowed a combined 3,610 b/d of oil and 3 MMcfd of gas through chokes ranging from 24/64 to 36/64 in. from three zones, three of them new pays. Site is 1 1/2 miles south of the 1 Sunfish discovery. Two or three more delineation wells will be required.

Ste. Nationale Elf Aquitaine

acquired the 20% interest previously held by Chevron Corp. in a group that owns hydrocarbon license H in southern Chad. Other group members are operator Exxon Corp. and Royal Dutch/Shell Group. The group has worked out broad lines of an oil field development program and is discussing with Cameroon a project to lay a crude pipeline across the country to an export terminal.

Southern Ute

Indian tribe, through its Red Willow Production Co., Ignacio, Colo., purchased Conoco Inc.'s interest in 51 producing gas wells in La Plata and Archuleta counties, Colo., mainly in Ignacio Blanco Mesaverde field, in a deal thought to be the first in which a tribe will serve as well operator. The tribe acquired a majority interest and will operate 21 of the wells. The purchase, covering net reserves estimated at 5.3 bcf of gas, will mark the start of field operations by the tribe. It is the first in a series of such transactions planned to build Red Willow into an active operator,

A Noble Drilling Corp.

unit agreed to supply an offshore jack up drilling rig to Cia. Perforadora Mexico SA for a four well program. The Red McCarty departed Jan. 22 from the Gulf of Mexico for Campeche Bay and is to start drilling this week. Noble expects the first contract to last through first quarter 1994.

Venezuela's

Energy and Mining Minister Alirio Parra said 274 Venezuelan and foreign companies have expressed interest in taking part in the second round of the auction of marginal oil field operations (OGJ, Dec. 7, 1992, p. 34). China's Xinhua News Agency reported 74 fields are being offered in 13 production units in the eastern and western part of the country, with total proved reserves pegged at 1.2 billion bbl.

Ruhrgas U.K.

Exploration & Production Ltd.

bought a 10% interest in North Sea Block 29/5b from Fina Petroleum Development Ltd. The block contains Franklin field and part of Elgin field. Operator Elf U.K. plc plans joint gas/condensate production starting in 1998. Partners with Elf 48.75% are British Gas plc 23.75%, Ranger Oil (U.K.) Ltd. 10%, and Union Jack Oil plc 7.5%.

Kelly Oil Carp.,

Houston, plans further development of its Ouiski Bayou field, Terrebonne Parish, La., confirmed with the 1 Casente, which flowed at a combined rate of 21 MMcfd of gas and 1,260 b/d of condensate from Miocene Hollywood KK and LL sands. The 1 Goldsby discovery well has averaged 15 MMcfd of gas and 450 b/d of condensate since it was placed on stream in October 1992. The confirmation well establishes new field pay in the LL sand.

Eastern American Energy Corp.,

Charleston, W.Va., bought the Appalachian region assets of Santa Fe Energy Resources, Houston, for about $7.4 million. The deal includes a 50% interest in a 400 mile gathering and distribution pipeline system and various interests in gas leases. The 10 MMcfd capacity pipeline is connected to about 375 producing wells. The leases include 250 wells in three states with total production of about 3 MMcfd.

BP Exploration Operating Co. Ltd.

let a L20 million ($32 million) contract to Lasalle Engineering Ltd., Inverurie, Scotland, for supply and operation of downhole pumps. The performance related contract runs for 5 years, during which time the pumps will be used on Forties Echo platform in the North Sea.

01 Industries Inc.,

Houston, acquired two drilling rigs from Argentina's state owned Yacimientos Petroliferos Fiscales at YPF's Jan. 25 auction (OGJ, Nov. 16, 1992, p. 32). The purchase doubles 01's Argentine fleet.

Unocal Corp.

plans to spend $119 million to develop more reserves in Cook Inlet, Alaska, from four platforms it acquired in 1990. Unocal holds a 100% interest in the so-called Chakachatna properties, for which it plans an initial development of 20 wells to boost production to about 11,000 b/d from 4,000 b/d, with results to determine further development. The project will involve geophysical concepts and extended reach drilling Unocal used last year at its Granite Point field platform, also in Cook Inlet (OGJ, Dec. 28, 1992, p. 28).

COMPANIES

British Gas plc

will restructure its London headquarters operations, making the corporate center responsible for direction of the company with overall financial control. Other activities carried out by the center will be transferred or eliminated. Cost of the restructuring will be about 270 million. About 3,700 persons are employed at headquarters, and about 2,000 will be moved to other business units in the group. The new corporate center will employ about 460 persons.

American National Petroleum Co.,

Houston, and Patrick Petroleum Co., Jackson, Mich., plan to merge, with Patrick the surviving company. Consideration for the merger, expected to close by the end of June, is $36.2 million.

Petrolite Corp.,

St. Louis, agreed to acquire Amoco Chemical Co.'s Welchem Inc. oil field production and process chemicals business. Welchem produces and markets production treating, stimulation, and drilling chemicals, and refinery and petrochemical processing chemicals. The acquisition is to be complete by the end of first quarter.

Brown & Root Ltd.,

London, agreed to form a joint venture with Skoda Concern AS, Plzen, Czech Republic. The joint company will target engineering projects in central and eastern Europe and the C.I.S.

COGENERATION

ARCO Gas

agreed to supply as much as 30.7 MMcfd of gas on a firm basis for 15 years to North Canadian Marketing Corp.'s Pasco and Lake cogeneration plants under construction in Central Florida. Total capacity of the plants is 212,000 kw. Delivery of 15.4 MMcfd via the Florida Gas Transmission system will begin in mid-1993, when the plants are to be complete.

OILSANDS

Suncor Inc.

restored production Jan. 6 at its oilsands plant in.northern Alberta to its previous average volume of 60,000 b/d after an electrical power failure shut down bitumen processing last Dec. 26 (OGJ, Jan. 11, p. 24). Extreme cold weather in the Fort McMurray region hampered repair efforts. Suncor estimated repair costs to date at $8 million.