INDUSTRY BRIEFS

PIPELINES

PEOPLES GAS SYSTEM INC. agreed to ship 42 MMcfd of gas beginning in 1995 on the proposed $600 million SunShine pipeline, with an option to add 25 MMcfd of shipments in 1997. SunShine is a venture of subsidiaries of Coastal Corp., Houston, and Florida Power Corp., a subsidiary of Florida Progress Corp., St. Petersburg. Florida Power earlier agreed to move 128 MMcfd on the 600 mile interstate pipeline, increasing shipments in 1999 to 210 MMcfd. SunShine's start-up capacity is pegged at 325 MMcfd, expanding to 800 MMcfd by 2000.

TENNESSEE GAS PIPELINE CO., a unit of Tenneco Gas, Houston, will lay a 15.6 mile, 117 MMcfd pipeline lateral from its interstate transmission system to a proposed meter station to supply gas to the 415,000 kw Conesville, Ohio, electrical power plant of Columbus Southern Power Co., a subsidiary of American Electric Power Co. Inc., both of Columbus. Conesville plant's boilers are to be converted to burn either gas or coal. The lateral, to be in service by Jan. 1 , 1995, is to tie into a local utility for redelivery to the Conesville plant.

EAST TEXAS GAS SYSTEMS started up a 30 MMcfd connection with Southern Natural Gas Co. in Panola County, Tex. The new hookup brings to 14 the total interconnects at a hub in the area, including six interstate and eight intrastate lines. The hub is near Union Pacific Resources Co.'s Carthage plant, one of the largest gas processing facilities in Texas. The hub, which began service late in 1991, moved 360 MMcfd during 1992. East Texas Gas Systems is majority owned and operated by UPRC subsidiary Union Pacific Fuels Inc.

GOVERNMENT

ONTARIO GOVERNMENT sold its remaining 14% interest in Suncor Inc., Toronto, for $190 million (Canadian) to brokers RBC Dominion Securities Inc. and ScotiaMcLeod. Suncor operates an oilsands plant in northern Alberta and retail gasoline stations. Suncor reported a 1992 loss of $228 million, mainly because of equipment and renovating costs at its Fort McMurray, Alta., plant. Ontario will use proceeds from the sale to help reduce an expected 1993-94 deficit.

DRILLING-PRODUCTION

MURPHY PETROLEUM LTD., a unit of Murphy Oil Corp., El Dorado, Ark., paid Lasmo North Sea plc $100 million for an 8.52% interest, effective since Jan. 1 , in T Block 16/17 in the U.K. North Sea, following approval of the deal by the U.K. Department of Trade. Proved reserves attributable to Murphy's new interest are 13.2 million bbl of oil and 11.2 bcf of gas. Production from the first of four T block wells is expected about midyear.

POCO PETROLEUMS LTD., Calgary, increased its 1993 exploration budget to $62 million (Canadian) from $42 million in 1992. Its drilling program will be expanded to 100 wells from 70, focusing on West Central Alberta. Poco said the increases are based on a successful gas exploration program and forecasts of higher wellhead prices.

ABRAXAS PRODUCTION CORP., a unit of Abraxas Petroleum Corp., San Antonio, closed its $41 million cash purchase of Mobil Producing Texas & New Mexico Inc.'s interests in Portilia and Stedman Island fields on the Central Texas Gulf Coast. Abraxas expects closing by May 3 on its purchase of Mobil's interest in East White Point field of South Texas. Purchases include 45 producing wells and two 40 MMcfd combined capacity natural gas processing plants, with Abraxas to become operator of 37 wells and both plants. Production attributable to its interest in the fields was about 700 b/d of oil and 3.4 MMcfd of gas during 1992.

TOTAL OIL MARINE PLC let a L15 million ($22.5 million) contract to McDermott/ETPM (U.K.) Ltd., London, to lay North Sea Dunbar field pipelines. Work includes a 15 mile, 16 in. insulated line from Dunbar in Block 3/14a to North Alwyn field in Block 3/9a and two 6 mile, 6 in. lines from Ellon field to Dunbar (OGJ, Mar. 1, p. 38). Pipelaying is scheduled for April and May 1994.

QUEST PETROLEUM EXPLORATION GESELLSCHAFT GMBH plans more oil shipments into western Europe from KomiQuest Ltd.'s workover joint venture in Vozey area oil fields of the Komi republic after a 37,500 bbl trial shipment into Germany cleared the Druzhba exit gate on Russia's Northern Pipeline. Early last month, KomiQuest produced about 2,000 b/d net to the joint venture from reworked wells in West Vozey and South Famen fields (OGJ, Mar. 8, p. 22). Quest Petroleum is KomiQuest operator with 50% interest.

CONOCO (U.K.) LTD.IS 49/22-12 appraisal well in Ganymede field on North Sea Block 49/22 flowed 60.4 MMcfd of gas and 74 b/d of condensate through a 72/64 in. choke. It was drilled to 10,000 ft by the Arch Rowan jack up to Rotliegendes Leman sandstone.

ELF EXPLORATION U.K. PLC'S 22/30c-10 appraisal well in North Sea Elgin field flowed 10 MMcfd of gas and 1,970 b/d of condensate through an 11/64 in. choke. Elf said the well confirms Elgin as a significant gas/condensate field. A feasibility study is under way for development of Elgin and Franklin fields, 4 miles southwest in Block 29/5b.

LASMO PLC let contract to Trafalgar House Engineering Contractors, London, for engineering, procurement, construction, and installation of a not normally manned satellite platform for North Sea Markham field. The platform will be installed in U.K. Block 49/5a in 100 ft of water. The jacket will weigh 820 metric tons, the topsides 1,200 metric tons fully loaded. Completion is scheduled for August 1994.

LNG

BECHTEL INTERNATIONAL INC., London, awarded Foxboro Co., division of Siebe plc, Windsor, U.K., an $8 million contract to upgrade Foxboro pneumatic controls at Sonatrach's LNG plant at Arzew, Algeria. The Foxboro I/A Series system upgrade, which consists of seven interoperating control nodes, will manage all six LNG trains and utilities at the plant. Foxboro will perform control application engineering, cathode ray tube graphics building, and system data base configuration to Bechtel's design, plus provide installation supervision.

PETROCHEMICALS

POLAND'S Mazovian Refinery & Petrochemical Works let contract to KTI Group By, Zoetermeer, Netherlands, for a study and engineering of MZRiP's Ethylene Plant 11 debottlenecking and modernization program at Plock, Poland. KTI will assess performance of the plant and recommend changes needed to increase capacity to 360,000 metric tons/year from 300,000 tons/year.

RUSSIA'S Gorknefteorgsintez, Kstovo, Nishninovgorod, let contract to KTI Group to supply ethylene cracking furnaces designed to process heavy feedstocks at its 300,000 metric ton/year ethylene plant at Kstovo. KTI will replace present cracking equipment with modern cracking furnaces that feature bottom firing.

UHDE GMBH, Dortmund, Germany, turned over to Sasol Ltd., Johannesburg, South Africa, a 240,000 ton/year ammonia plant at Sasolburg, about 80 miles south of Johannesburg. Tail gas from existing coal liquefaction units feeds the turnkey ammonia unit, which incorporates into the main process route a pressure swing adsorption unit to produce synthesis gas for Johannesburg and neighboring districts. Uhde subsidiary Uhde (Pty.) Ltd., Johannesburg, handled detailed engineering, equipment procurement, civil works, and erection on the project.

SPILLS

A BARGE owned by Ingram Barge Co., Nashville, struck a bridge at Donaldsonville, La., about 50 miles west of New Orleans, and spilled as much as 7,000 bbl of fuel oil Apr. 9 into the Mississippi River. The vessel was moving 22,000 bbl of product from a nearby refinery to Mobile, Ala. No contamination at municipal or commercial water systems was reported. More than 25 water utilities in St. Charles, St. James, and St. John the Baptist parishes closed intake systems as a precaution. Ingram deployed more than 15,000 ft of containment boom, six skimmers, and six vacuum trucks.

EXPLORATION

FREEPORT MCMORAN INC., New Orleans, 5 OCS-G 9478 wildcat flowed a combined 5,000 b/d of oil and condensate and 25 MMcfd of gas from three intervals. It was directionally drilled to 12,515 ft on East Cameron Block 332 in 250 ft of water, 200 miles southwest of New Orleans. The well out 112 ft of net oil pay and 93 ft of net gas pay. Deepest pay at 12,320-372 ft flowed 2,316 b/d of oil and 3 MMcfd, the middle zone at 12,105-164 ft 1,800 b/d of condensate and 20.8 MMcfd, and the shallowest interval at 11,986-12,014 ft 864 b/d of oil and 1.3 MMcfd. Ownership is Freeport-McMoRan 70.4%, Cairn Energy USA Inc., Dallas, 20%, and 9.6% undisclosed interests.

APACHE CORP. unit Apache Oil Australia Pty. Ltd. reported the 1 East Spar discovery in the 330,000 acre WA-214-P block off Western Australia flowed 33.8 MMcfd of gas and 1,714 b/d of 58, gravity condensate through a 11/4 in. choke at 1,157 psi flowing tubing pressure. The well is 65 miles offshore in 323 ft of water, about 45 miles northwest of Airlie Island. Interest holders are Ampolex (A.O.E.) Ltd. 35%, Western Mining Corp. Ltd. 30%, Apache 20%, and Bridge Oil Ltd. 15%.

RISJAD SALIM RESOURCES INTERNATIONAL, Jakarta, last month was to begin a seismic survey over the northern portion of its production sharing contract (PSC) in the Bontang area of East Kalimantan, Indonesia. Plans call for spending $36 million during 1 0 years under the PSC Risjad Salim signed with state petroleum company Pertamina last year. Risjad Salim is only the third Indonesian company to be involved in the country's oil and gas exploration and production sector.

BP EXPLORATION OPERATING CO. LTD. abandoned its 1 Lan Tag wildcat on Block 06 in Viet Nam's South Con Son basin after a blowout. BP brought the well under control and plans to drill again on the structure. The well is the first of three BP plans with Den norske stats oijeselskap AS on a farmout with partner Oil & Natural Gas Commission of India.

COMPANIES

SAUDI BASIC INDUSTRIES CORP. opened an affiliate company in Essen, Germany, Apr. 1. Sabic Marketing Deutschland GmbH aims to strengthen the company's presence in what it sees as a long term growth market for petrochemicals, despite Germany's current recession.

CHEVRON U.K. LTD. and Conoco (U.K.) Ltd. agreed to share air transportation for northern North Sea installations through yearend 1995. Chevron said it will save L4 million ($6 million) during the period, while Conoco pegged savings at 93 million ($4.5 million). Chevron's Ninian field aircraft serves Conoco's Hutton and Murchison fields and supports development drilling via the Neddrill 6 semisubmersible rig on Conoco's Lyell field.

NORCEN ENERGY RESOURCES LTD., Calgary, completed its takeover of North Canadian Oils Ltd., Calgary, after North

Canadian directors rejected a merger plan. Norcen proposed the merger last December, but a share trade proposal was rejected by a committee of North Canadian's directors. The two companies will continue to operate separately and will have combined production of 62,500 b/d of oil and gas liquids and 528 MMcfd of natural gas.

REFINING

TOSCO CORP. unit Bayway Refining Co. completed its $175 million purchase of Exxon Co. U.S.A.'s Bayway refinery in Linden, N.J. Plant output is expected to yield 240,000 b/d of products.

SUN CO. INC. let a $45 million contract to Brown & Root Braun, a unit of Brown & Root Inc., Houston, to design and install waste water stream modifications to reduce benzene emissions at Sun Refining & Marketing Co.'s 175,000 b/cd, 130,000 b/cd, and 125,000 b/cd refineries at Marcus Hook, Pa., Philadelphia, and Toledo, respectively. Brown & Root Environmental is to provide conceptual environmental engineering services. Construction is to start in the third quarter with completion expected in first quarter 1994.

A WASHINGTON, D.C., federal appeals court remanded to the Environmental Protection Agency for reconsideration within 180 days EPA's denial of Ethyl Corp.'s fuel additive waiver application for the HiTEC 3000 performance additive. Ethyl said the court's decision is a positive development in the company's effort to win approval for use of its manganese based additive in unleaded gasoline in the U.S.

GULF-PETRO TRADING CO. INC., Dallas, and subsidiary Petrec International signed joint venture agreements with Nigerian National Petroleum Corp., Lagos. One calls for Gulf-Petro Refining Ltd. to build a 10,000 b/d portable refinery at Bonny, Nigeria, with work to start in late June or early July. The other agreement is for cleaning all crude tanks and waste water facilities at NNPC refineries at Warri, Port Harcourt, and Kaduna, Nigeria, with work to start in June.

KOCH REFINING CO., Wichita, let a contract to Pritchard Corp., Overland Park, Kan., for engineering and procurement of a methyl tertiary butyl ether unit at its Rosemount, Minn., refinery. The project, based on the UOP/Huls/Koch Ethermax process, is:to start up late this year.

Copyright 1993 Oil & Gas Journal. All Rights Reserved.