INDUSTRY BRIEFS

REFINING

ESSO SINGAPORE PTE. LTD. let a $236 million contract to Foster Wheeler Eastern Pte. Ltd., Singapore, a unit of Foster Wheeler Italiana SpA, Milan, for a 15,000 b/d hydroprocessing unit at its 220,000 b/cd Pulau Ayer Chawan refinery in Singapore. The unit will upgrade high sulfur vacuum gas oil into low sulfur diesel fuel, naphtha, and vacuum gas oil. Work is to start early in 1994 with completion scheduled for late 1995.

EASTERN REFINERY LTD., Dhaka, Bangladesh, expects to start up a visbreaker at its 30,000 b/d Chittagong refinery by the end of this month. The unit will process 12,000 b/d of Chittagong resid feedstock to produce 280 b/d of diesel fuel and 30 b/d each of naphtha and LPG. Bangladesh consumes 20,000 b/d of diesel fuel, of which the Chittagong refinery currently supplies 5,500 b/d.

CONFERENCES U.S.-RUSSIA BUSINESS COUNCIL received a $250,000 grant from the U.S. Trade & Development Agency to sponsor an oil and gas exhibit and financing conference in Moscow in November. Goal of the conference is to allow small to medium size U.S. equipment and services companies to display their products in Moscow and show how firms can access U.S. Export-Import Bank programs.

SAFELY

TEESSIDE DEVELOPMENT CORP. and the Norwegian Underwater Technical Centre AS, Bergen, Norway, plan to open a 2.8 million ($4.2 million) offshore safety training center at the former Haverton Hill shipyard, Middlesbrough, U.K. The center, scheduled to begin operations early in 1994, will have facilities for platform escape simulation.

COMPANIES

DRESSER INDUSTRIES INC., Dallas, and Baroid Corp., Houston, agreed to merge in a stock trade that will exchange 0.4 share of Dresser common for each share of Baroid common. The $900 million deal is scheduled for completion by mid-January 1994. Directors of the service/supply companies approved the merger.

GERMAN group Veba AG, Dusseldorf, will eliminate 10,000 jobs by yearend 1994 because of weak demand for oil and petrochemical products. It will cut 8,000 jobs at Huels AG, 1,500 at Schenker Eurokargo, and 500 at Veba Oel AG.

SOUTHERN UNION CO., Austin, agreed to buy Rio Grande Valley Gas Co. from Valero Energy Corp. for $30 million. The deal, expected to be complete by Oct. 1, includes 1,552 miles of gas distribution lines in South Texas. Southern Union, which bought Eagle Pass Natural Gas Co. in August and Berry Gas Co. in May, plans to buy the Missouri operations of Western Resources Inc. The purchases add nearly 80,000 customers to Southern Union's gas distribution network.

OXFORD CONSOLIDATED INC., Denver, completed its sale of unit Premier Resources Ltd. to Northern Reef Exploration Ltd., Calgary, for $3.5 million (U.S.) and a 1 year warrant to buy 50,000 shares of Northern Reef common stock at $7.50 (Canadian)/share. Premier operates leases in Southeast Alberta.

BEAU CANADA EXPLORATION LTD. and Belmoral Mines Ltd., Toronto, agreed to merge if Belmoral raises $55 million (Canadian) as part of the price to buy Langevin Resources Ltd. from parent PanCanadian Petroleum Ltd., Calgary. Total sale price for Langevin is not disclosed. Belmoral is making a transition from gold mining to the oil industry. Beau Canada said if the merger is completed its oil production will increase to 3,100 b/d from 1,400 b/d and gas production to 47 MMcfd from 10 MMcfd.

PAKISTAN'S STATE ENGINEERING CORP. (SEC) will undertake turnkey engineering jobs in cooperation with foreign companies on the basis of technology transfer with emphasis on domestic content of oil and gas processing equipment. SEC unit Heavy Mechanical Complex (HMC) has orders to supply a sulfur recovery unit for Meyal oil field, equipment for a 50 MMcfd gas dehydration plant for Pirkoh Gas Co., and facilities for state owned Oil & Gas Development Corp.'s Dakhni oil and gas fields. In addition, the government ordered 20% of the work related to the hydrocracker project at Pakistan Refining Ltd.'s Karachi refinery to be done by HMC's Enar Petrotech division.

POCO PETROLEUMS LTD., Calgary, offered to buy all petroleum assets of Voyager Joint Ventures and Limited Partnerships, also of Calgary. Poco owns interests in and operates the Voyager leases. Production is 9 MMcfd of gas and 1,400 b/d of oil and gas-liquids. The offer of cash for Poco stock is open until Sept. 28.

THE ALBERTA OPERATION of the international Safety Boss organization has been sold to create a new company, Safety Boss Canada (1993) Ltd. Safety Boss owner Mike Miller sold the Alberta operation to buyers that include several senior employees. The new Canadian unit will retain corporate ties with Safety Boss International and Safety Boss Ltd.

RESEARCH

EUROPEAN PETROLEUM INDUSTRY ASSOCIATION and the European Automobile Manufacturers Association, both of Brussels, agreed to launch a 2 year research program to investigate the effects of fuel specifications and engine technologies on vehicle exhaust emissions.

DRILLING-PRODUCTION

APACHE CORP. closed its $96.8 million cash acquisition of leases in the Gulf of Mexico from Hall-Houston Oil Co. The deal by the Houston companies is subject to adjustments, including a $13 million reduction in the purchase price to take into account production through July 31. The leases produce 50 MMcfd of gas and 1,800 b/d of condensate net to Apache interests.

FM PROPERTIES INC., New Orleans, will sell almost all of its oil and gas leases for $305 million in cash to Noble Affiliates Inc. unit Samedan Oil Corp., Ardmore, Okla. FM will use the money to reduce long term debt. Closing is expected in October. Reserves on the leases include 23 million bbl of crude and condensate and 265 bcf of gas.

MOBIL NORTH SEA LTD. holds a 10% interest in Scott field, which went on stream Sept. 2. Mobil calls it the largest field to begin production in the U.K. North Sea in the 1990s. Scott, 130 miles northeast of Aberdeen, Scotland, is expected to reach a production plateau of 1 80,000 b/d of oil this month. Gas flow is to start during fourth quarter. Field reserves are pegged at 450 million bbl of oil and 287 bcf of gas. All gas from the field has been sold to Mobil Gas Marketing Ltd.

ALBERTA ENERGY LTD., Calgary, plans to spend as much as $50 million (Canadian) in 1993-94 to develop and process natural gas reserves in West Central Alberta. The company recently acquired from Gulf Canada Resources Ltd. one well with production of 8 MMcfd, 21 sections of land, and a 10 mile sour gas pipeline to the Bigstone gas plant operated by Amoco Canada Ltd. AEC plans.to drill eight wells in the area 47 miles northwest of Edson in addition to its current interests in nine wells. The company also plans to build a 50 MMcfd sweet gas processing plant.

PHILLIPS PETROLEUM CO. U.K. LTD. let a 5.5 million ($8.25 million) contract to Lewis Offshore Ltd., Stornoway, Scotland, for piling on its Judy platform in the North Sea. The work will involve fabrication and load out of 14 piles, each 115 m long and weighing a combined 8,000 metric tons. Work is to be complete by yearend 1994.

ARCO BRITISH LTD. drilled the 44/18-2Z appraisal well on its U.K. Southern North Sea Tyne structure to 12,600 ft, using the Neddrill III jack-up rig in 70 ft of water. The well, which flowed 27.5 MMcfd of gas through a 1 in. choke, cut Carboniferous sands previously untested on the structure. Another appraisal is planned. Meantime, development options are being considered.

BHP PETROLEUM PTY. LTD. let contract to Petroline Wireline Service Ltd., Aberdeen, for wellhead profiles for use in Dai Hung field development off Viet Nam. Petroline said it is to provide profiles for six wells planned in the field.

BP EXPLORATION OPERATING CO. LTD. let a 75 million kroner ($10 million) contract to Norwegian Contractors AS, Stavanger, Norway, for tow-out and installation of the gravity base structure for its Forth field. Marine operations are scheduled for summer 1995.

OIL & GAS CANADA LTD., Calgary, bought leases valued at $6.5 million (Canadian) from Suncor Resources Inc., also of Calgary. Assets include ownership of Neutral Hills oil field and a 50% interest in Goose Berry Lake oil field, which have combined production of 400 b/d net. A seven well infill drilling program will begin in Neutral Hills in October.

PHILLIPS PETROLEUM CO. U.K. LTD. let a 22 million ($33 million) contract to Trafalgar House Offshore Holdings Ltd., London, for fabrication of a gas treatment module for the Judy/Joanne field development program in U.K. North Sea Block 30/7a. The 3,600 metric ton module is scheduled for completion in May 1995, after which it will be incorporated into the Judy platform, due on stream in April 1996.

PIPELINES

INDIA'S GOVERNMENT let contract to Czech Republic group Skoda-Strojoexport to lay a 1,300 km products pipeline from Kandla on the Gulf of Kutch in Gujarat on India's west coast to Bhatinda in Punjab in northern India. Bids on the project were opened in October 1992, and the project originally was scheduled to be complete by May 1993. Civil unrest in Punjab state and concerns over boosting India's investment in the project to keep the foreign exchange component within World Bank credit limits helped cause the delay.

MIDWESTERN GAS TRANSMISSION CO. (MGT), a unit of Tenneco Gas, Houston, will lay a 352 mile gas pipeline system in the U.S. Upper Midwest to connect major interstate gas pipelines that cross MGT's system. The line is to run from an MGT link with Tennessee Gas Pipeline near Portland, Tenn., and cross interstate lines of Texas Gas Transmission Co., Texas Eastern Transmission Corp., Trunkline Gas Co., Natural Gas Pipeline Co. of America, ANR Pipeline Co., and Panhandle Eastern Pipe Line Co. before ending near Chicago.

INDONESIA plans to lay a 350 km, $420 million gas pipeline network in Riau province. State gas company Perum Gas Negara expects work to start at yearend 1994. Asian Development Bank will provide $300 million toward funding while other international financing organizations will contribute the rest.

ENVIRONMENT

GAS RESEARCH INSTITUTE let a $1.2 million contract to ENSR Consulting & Engineering for the first phase of a 3 year, $2-2.5 million project to develop new handling technology and processes for brine produced by gas wells. ENSR is to manage subcontractors, help direct project activities, report progress of the study, and help transfer resulting advances to the gas industry through an independent forum sponsored by the Groundwater Protection Council. In addition, a technical advisory panel is to oversee the work.

PETROCHEMICALS

AL-JUBAIL FERTILIZER CO., a 50-50 venture of Saudi Basic Industries Corp. and Taiwan Fertilizer Co., signed a letter of intent with John Brown Engineers & Constructors Ltd., London, to build a 2-ethyl hexanol plant at an undisclosed site. The 150,000 metric ton/year plant, to be complete late in 1995, will use propylene and natural gas as feedstock.

UNION CARBIDE CHEMICALS & PLASTICS CO. INC. let contract to Fluor Daniel for construction services in an expansion of its Star polyethylene plant at Taft, La., by 650 million lb/year to 1.7 billion lb/year of low and high density polyethylene. Engineering is under way with project completion scheduled for March 1995.

GOVERNMENT

U.S. MINERALS MANAGEMENT SERVICE (MMS) issued a rule requiring a $200-500 million surety bond to ensure removal of offshore platforms when production is depleted. Although the rule requires higher bonds, it retains the current bond coverage for active leases until there is a change in the lease status or ownership.

MMS plans to propose a rule raising operators' financial responsibility for offshore oil spills to $150 million from $35 million. The increase is required by the 1990 Oil Pollution Act, MMS asked for industry comments on the rulemaking.

EXPLORATION

MOBIL NORTH SEA LTD. found gas/condensate in the U.K. North Sea with its 29/2c-8 well. Drilled by the Sedco 706 rig, the well flowed 25 MMcfd of gas and 1 620 b/d of condensate through a 12/64 in. choke. It is being sidetracked as the first stage of an appraisal program.

EXPORTS-IMPORTS

CANADA'S National Energy Board issued licenses to CanWest Gas Supply Inc. and ProGas Ltd. to export gas to the U.S. West and North. A 20 year license allows CanWest to export as much as 10.6 MMcfd at Huntingdon, B.C., for sale to Klickitat Energy Co. to fuel a 49,500 kw natural gas and wood waste fired combined cycle cogeneration plant at Bingen, Wash. A 10 year license lets ProGas export as much as 75 MMcfd for sale to Consumers Power Co., a local distribution company, to serve its franchise area in Michigan's lower peninsula.