INDUSTRY BRIEFS

OILSANDS

CANADA'S government will double funding for an oilsands and heavy oil research center at Devon, Alta., to $15 million. The Western Research Center there will be renamed the National Center for Upgrading Technology. Fifty-four oilsands researchers will move from Ottawa to Devon, increasing research staff there to 90. A major objective of the center is research to find ways to reduce the cost of upgrading bitumen.

REFINING

SINGAPORE REFINING CO. PTE. LTD., a joint venture of British Petroleum plc, Singapore Petroleum Co., and Caltex (Asia) Ltd., will upgrade its 220,000 b/d refinery on Pulau Marlimau Island southwest of Singapore. The $840 million project will enable the plant to produce more transportation fuel and less fuel oil by 1995. Work will be carried out by Japanese Gasoline Corp., Tokyo.

U.S. DEPARTMENT OF ENERGY let contract to M.W. Kellogg Co., Houston, to study a process for gasifying heavy slurry oil and petroleum coke to produce commercially useful products. As part of DOE's $1.4 million, 3 year project, Kellogg will test a process that converts the bottom of the barrel to hydrogen and carbon monoxide, or syngas. The new process will adapt the pressurized ash agglomeration gasification system, originally developed for gasifying coal.

GULF OIL REFINING LTD. let contract to Stone & Webster Engineering Ltd., Milton Keynes, U.K., to evaluate distillate hydrotreaters at its 110,000 b/d Milford Haven, South Wales, refinery and identify revamp options. Designs will be produced for upgrading middle distillate fuel production in line with low sulfur and diesel fuel requirements.

GOVERNMENT

THE LOUISIANA SENATE rejected 15-23 a proposed constitutional amendment seeking to levy a broadly defined processing tax on oil, gas, and refined products (OGJ, Mar. 22, p. 40). Senate Bill 3 aimed to generate an estimated $850 million/year in tax revenue and cost Louisiana consumers another $300 million/year in higher energy and transportation costs. Critics argued the processing fee would discourage upstream and downstream oil and gas activities, while proponents said it would be levied mostly against hydrocarbons imported into or passing through the state.

EUROPEAN COMMUNITY environment and energy ministers will meet Apr. 23 to try to resurrect the EC carbon tax. Finance ministers said they were encouraged by U.S. fuel tax proposals. EC decided last year its trade partners, including Japan, must enforce energy taxes before the carbon tax will be introduced.

LPG

MOBIL CORP. AFFILIATES sold interests in liquefied petroleum gas operations in Turkey and New Guinea for a combined $26.8 million. Mobil Oil Turk AS received $25 million from LPG marketer Aygaz of Turkey and Koc Holding, an Aygaz shareholder, for a 56% interest in two LPG marketing companies. Boral Gas Ltd. of Australia paid $1.8 million for the LPG business of Mobil Oil New Guinea Ltd.

EXPLORATION

JOINT VENTURE PARTNERS Maersk Olie OG Gas AS, Copenhagen, Pogo Producing Co., Houston, Rutherford-Moran Oil Corp., and Thai company Sophonpanich Go. Ltd. moved the Sedco 601 semisubmersible rig to the untested Yungthong structure in the Gulf of Thailand to drill a third wildcat on their 2.6 million acre License B8-32. Site is 22 miles southwest of the 1 Tantawan discovery, the first wildcat drilled by the partners last year on the license. Drilling ended last month on their second wildcat, 1 Cattleya, 9 miles north of 1 Tantawan, and plans are to plug it.

MONGOLIA'S state company Mongol Petroleum Co. let a 5 year production sharing contract to SOCO Mongolia Inc. for the 11,400 sq km Buir Contract Area XXII in the Tamtaag basin of Northeast Mongolia. SOCO, a unit of Snyder Oil Corp., Fort Worth, said the concession, which offsets China's Hailar basin, is the first production sharing contract awarded in Mongolia, It's subject to government approval.

RESEARCH

AEA TECHNOLOGY, Winfrith, U.K., seeks sponsors to extend a 2 year drilling mud research program for 12 months. More work is needed to examine polymer performance in complex mixtures and polymer adsorption mechanisms, it said.

PIPELINES

TRANSCANADA PIPELINES LTD., Calgary, submitted a revised 1994-95 application to Canada's National Energy Board for permission to build pipeline loops and compression worth $637.3 million (Canadian). The revised application includes 290 km of loops and 192 million kw of compression. If approved, facilities will be built during 1994-95 and be in service by November 1995.

ALGONQUIN GAS TRANSMISSION CO., Boston, asked the U.S. Federal Energy Regulatory Commission for a permit to lay 3.8 miles of 16 in. gas pipeline in Brockton, Mass.; 3.2 miles of 36 in. replacement pipeline in Oakland and Mahwah, N.J.; and 4.9 miles of 36 in. replacement pipeline in Southeast New York. The $35 million project, scheduled for construction in 1994, will allow Algonquin to move 15 MMcfd for Bay State Gas Co. to help meet growing gas demand in the Brockton market. New England Power Co. will receive 25 MMcfd for electrical power generation.

FERC is seeking comment on a proposal, required by the 1992 Energy Policy Act, that would simplify ratemaking for U.S. oil pipelines. Under the plan, FERC would adopt an indexing method for setting oil pipeline rates, setting a maximum ceiling level. It also would limit challenges to oil pipeline tariffs.

A COLONIAL PIPELINE CO. products line ruptured Mar. 28, spilling about 2,300 bbl of diesel fuel into the Potomac River from Sugarland Run Creek in Fairfax County, Va., south of Washington, D.C. Authorities shut down a drinking water treatment plant on the Potomac, switched to supplies from Occoquan, Va., and asked residents to conserve water until the plant reopens.

TRANSPORTATION

SUBIC BAY METROPOLITAN AUTHORITY leased to Coastal Corp. subsidiary Coastal Petroleum NV the POL Depot petroleum storage facilities at the former U.S. naval base at Subic Bay, Philippines. The long term agreement includes 68 sites on 304 acres of land with 2.4 million bbl of mainly underground storage capacity and 40 miles of pipelines connecting the terminal with other facilities within Subic Bay Free Port. An 844 ft pier can serve two 60,000-80,000 dwt vessels at the same time.

U.S. ENVIRONMENTAL PROTECTION AGENCY and 14 gas transmission and distribution companies launched a program to prevent release of methane emissions into the atmosphere. Under the "Natural Gas Star" program, the pipelines will increase inspection and maintenance to reduce leakage and replace gas venting equipment. EPA said the actions could reduce emissions 30% and save 25 bcf/year.

GAS PROCESSING

SAUDI ARABIAN OIL CO., Dhahran, let a $5 million (U.S.) contract to a unit of SNC-Lavalin Inc., Montreal, for work on control systems at an undisclosed Saudi gas processing plant. The work will be conducted by SNC-Lavalin's chemicals and petroleum division, Calgary.

COMPANIES

MOBIL CORP. subsidiary Mobil Petroleum Inc. will sell its 25% interest in New Zealand Synthetic Fuels Corp. Ltd. (Synfuel), a New Plymouth, N.Z., natural gas to gasoline plant, to partner Fletcher Challenge Ltd., Auckland, for $73 million in cash plus royalty payments for continuing to provide technology support. The deal is tied to a plan to merge global methanol interests of Fletcher and Canadian Methanex Corp. Mobil marketing/ refining affiliate Mobil Oil New Zealand Ltd., Wellington, N.Z., will retain access to more than 40% of Synfuel's gasoline production.

PATRICK PETROLEUM CO., Jackson, Mich., signed an agreement with American National Petroleum Co., Houston, calling for the merger of ANPC with a Patrick subsidiary. Patrick will be the surviving corporation in the $35 million deal. Subject to shareholder approval from both companies, closing is expected by the end of June.

DRILLING-PRODUCTION

MURPHY ATLANTIC OFFSHORE OIL CO. LTD., a unit of Murphy Oil Corp., El Dorado, Ark., completed the acquisition of a 6.5% interest in the Hibernia oil field development project off Newfoundland. Remaining development costs attributable to Murphy's interest are estimated at $275 million (Canadian). The deal includes a package of government guaranteed loans and grants. Hibernia production is expected to start in mid-1997 and peak in 1999 at 125,000 b/d. Other project partners are Mobil Oil Canada Ltd. 33.1%, Chevron Canada Resources Ltd. 26.9%, Petro-Canada 25%, and the Canadian government 8.5%.

AN EXPLOSION at Maraven SA's Lama gas compression plant on Venezuela's Lake Maracaibo Mar. 25 killed 10 persons and injured many others. After the blast, Maraven shut down 120,000 b/d of crude production but at presstime was restoring or rerouting some production. Cause of the accident was unknown at presstime.

ELF AQUITAINE NORGE AS let a 135 million kroner ($19.5 million) contract to Wilrig AS for predrilling of four Froy field development wells in Norwegian North Sea Block 25/5. The Treasure Saga semisubmersible rig will start work late next month or early in June to complete drilling in April 1994. Production start-up is expected in January 1995.

BDM-OKLAHOMA INC., McLean, Va., submitted the apparent winning proposal to operate the Department of Energy's Bartlesville, Okla., production research center. Upon DOE approval of a final contract, BDM will assume management of the complex Aug. 1 under a 5 year, $211 million contract. BDM will use the University of Tulsa as its main subcontractor for technology transfer to the petroleum industry.

SEAGULL ENERGY CORP., Houston, expects to begin production this fall from a gas well in the Seagull trend off Texas via a company operated facility being built to serve Galveston Block 273 and adjoining Block 283. Its 5 OCS-G-9035 discovery in Block 273 about 23 miles east of Freeport, Tex., in 69 ft of water cut 60 ft of net pay in four zones. One of two tested zones flowed 8.8 MMcfd through a 20/64 in. choke at 2,657 psi flowing tubing pressure, and the other flowed 2.4 MMcfd through an 11/64 in. choke at 2,482 psi flowing tubing pressure.

ANADARKO PETROLEUM CORP., Houston, and partners plan to install a larger platform on High Island East Addition South Extension Block A-376 about 115 miles off Texas. The decision to enlarge follows drilling of the 6 High Island A-376 delineation well that cut 162 ft of net pay, confirming discovery of 178 ft of net pay below 10,761 ft last November on the same tract by the 5 High Island A-376 wildcat (OGJ, Nov. 16, 1992, p. 39). Operator Anadarko owns 33.8% interest in Block A376, Diamond Shamrock Offshore Partners Ltd. Partnership 29.92%, Elf Exploration Inc. 15%, Samedan Oil Corp. and New England Energy Inc. 7.5% each, and Columbia Gas Development Corp. 6.25%.

ATLANTIS RESOURCES LTD., Calgary, bought a 5,760 acre oil and gas lease in Southeast Saskatchewan from Pan-Canadian Petroleum Ltd. for an undisclosed price. The lease produces about 400 b/d of oil. Atlantis plans to drill two horizontal wells and double production in the next few months.

GARNET RESOURCES CORP., Houston, expects by yearend to boost production to more than 8,000 b/d from 3,000 b/d at Toroyaco and Linda fields on its Santana block in southern Colombia. An eight well development drilling program under way in the block is to be complete by mid-1994.

MOBIL NORTH SEA LTD. platform topsides tow-out got under way last week from AMEC plc's yard at Wallsend, U.K., to two North Sea gas fields. AMEC will hook up and commission the two unmanned platforms in Lancelot field in Block 48/17a and Guinevere field in Block 48/17b to be ready for production start-up in July.

PETROCHEMICALS

THAI PETROCHEMICAL INDUSTRY CO. LTD., Bangkok, let contract to Uhde GmbH, Dortmund, Germany, to design and build a low density polyethylene plant based on the tubular reactor process from Hoechst AG/Werk Ruhrchemie, Oberhausen, Germany. The 75,000 metric ton/year plant will be built at Rayong 200 km south of Bangkok. It's scheduled to go on stream in 1995.

MALAYSIA'S state company Petronas, Idemitsu Petrochemical Co., and BP Chemicals Ltd. agreed to a joint petrochemical project in Malaysia. Plans call for construction of 320,000 metric ton/year ethylene and 200,000 ton/year polyethylene plants in Kerteh, Trengganu state. Polyethylene production is to begin in third quarter 1995, and ethylene output is to start in first quarter 1996.

EXPORTS-IMPORTS

TOSCO CORP., Stamford, Conn., agreed to buy 60,000 b/d of crude oil from Norway's Den norske stats oljeselskap AS. The volume is about 25% of crude supply needed for Tosco's Bayway refinery at Linden, N.J.