INDUSTRY BRIEFS

LNG

QATAR GENERAL PETROLEUM CORP.

(QGPC) and Mobil Corp. agreed to form a joint venture to develop as much as 10 million metric tons/year of liquefied natural gas from giant North field off Qatar. The joint venture will market LNG from the project, operated by Ras Laffan Liquefied Natural Gas Go. Ltd. and owned 70% by QGPC and 30% by Mobil. Mobil and QGPC also are teamed in the Qatargas LNG project to supply LNG to Japan's Chubu Electric starting in January 1997 (OGJ, Dec. 14, 1992, p. 30).

REFINING

CONOCO INC.

temporarily halted construction of a hydrotreater at its 48,000 b/d Commerce City, Colo., refinery because the company terminated the contract of construction company Brown & Root Braun for economic reasons. Construction is about 75% complete on the unit, and Conoco plans to award through bidding a new contract for completing the job.

IMPERIAL OIL LTD.,

Toronto, is assessing damage after a Dec. 21 fire shut down its Norman Wells refinery in Canada's Northwest Territories. The refinery processes about 3,300 b/d of crude, which supplies arctic communities. An Imperial field in the area that produces about 34,000 b/d was not affected by the fire. The company said it was not known how long the refinery will be down, but most northern communities have fuel stockpiles to draw on.

NIPPON PETROLEUM REFINING CO.

started up a 30,000 b/d gas oil and residual catalytic cracker at its Negishi refinery at Yokohama City, Japan. The Stone & Webster Engineering Ltd. two stage resid unit was installed because of the increasing variety of imported crudes and reduced supplies of light, low sulfur crude.

DRILLING-PRODUCTION

EUROPEAN BANK

FOR RECONSTRUCTION AND DEVELOPMENT

approved project financing for the Vasyugan Services joint venture, which includes Fracmaster Group, Tomskneft Production Association, and the Vasyugan oil and gas production division. The joint venture plans to increase oil production in Vasyugan field in the Tomsk area of western Siberia by more than 20,000 b/d through well stimulation (OGJ, Aug. 12, 1991, p. 31). The first fracture treatment is scheduled in first quarter 1993. Fracmaster holds a 50% interest in the venture and the Russian partners the remainder.

ELF ENTERPRISE CALEDONIA LTD.

let contract to Genesis Engineering Consultants, London, to study development options for its Elgin and Franklin prospects in the Central North Sea. Both are high temperature, high pressure gas/condensate reservoirs, so platform developments are most likely. Elgin has estimated recoverable reserves of 125 million bbl of oil and 750 bcf of gas, while Franklin has 75 million bbl of oil and 750 bcf of gas.

AGIP SPA

let contract to Reading & Bates Corp., Houston, to supply its fourth generation Friede & Goldman Trendsetter Jack Bates semisubmersible drilling rig for a multiwell contract in the Adriatic Sea in water depths to 3,000 ft. The rig, outfitted for harsh environments, can operate in as much as 4,000 ft of water while moored. The unit, hired to drill two wells plus option wells, started its tow to the Adriatic Dec. 18. It will be under contract for at least 160 days.

KERR-MCGEE OIL (U.K.) PLC

won U.K. Department of Trade & Industry approval to develop Gryphon oil field on North Sea Block 9/18b where reserves are estimated at 96 million bbl of oil. Kerr-McGee bought the Tentech 850 production ship to develop the field and let contract to McNulty Offshore Services, South Shields, U.K., to install process facilities. Production is to start in October 1993, with peak flow of 50,000 b/d expected in 1994 (OGJ, Dec. 14, 1992, p. 26).

ACANTHUS RESOURCES LTD.,

Calgary, and Maxwell Energy Inc., Vancouver, B.C., formed a $20 million (Canadian) natural gas joint venture in Alberta. The new firm, Maxwell Resources Inc., bought natural gas leases at Crossfield, north of Calgary, from Shell Canada Ltd. Acanthus said the venture plans acquisitions worth $150 million or more in 1993.

AMOCO (U.K.) EXPLORATION CO.

installed topsides for its Lomond gas field production platform on North Sea Block 21/21. This completes the major infrastructure for the 1.2 billion ($1.8 billion) Everest/Lomond complex, which will start to deliver 300 MMcfd of gas into the Central Area Transmission System (CATS) pipeline in April (OGJ, Dec. 14, 1992, p. 30).

AMERADA HESS LTD.'S

211/23b-11 pool wildcat in the U.K. North Sea flowed at a rate of 10,100 b/d of 30 gravity oil through a 46/64 in. choke. The well is on acreage adjoining Osprey and Dunlin fields, which currently produce a total of about 55,000 b/d of oil for operator Shell U.K. Exploration & Production.

BRITISH GAS PLC

let a conceptual engineering and design contract for Armada complex development to Brown & Root Vickers Ltd., London. Armada fields are in 300 ft of water in North Sea Blocks 16/29a, 16/29c, 22/4a, 22/5a and 22/5b (OGJ, Aug. 17, 1992, p. 49). First gas is targeted for 1996 from reserves estimated at 1.2 tcf of gas and 80 million bbl of condensate. BG chose a single production, quarters, and wellhead platform development for Armada. As much as 375 MMcfd of gas will be shipped via CATS.

FLOYD OIL CO.,

Houston, acquired five leases from Oryx Energy Co., Dallas, for $24.1 million. The deal includes a 38% interest in the Canada Ojitos Unit in West Puerto Chiquito field in the San Juan basin, an average 95% working interest in 14 wells in Basin Dakota field in the San Juan basin, 15-33% interests in three waterflood units in Slaughter, Levelland, and Ownby fields in West Texas, about 100% working interest in 22 Devonian and Permian San Andres wells in West Texas, and various interests in 70 wells in Lea County, N.M.

LASMO PLC'S

16/12a-18z sidetrack appraisal well on the South Birch prospect in the U.K. North Sea flowed at a rate of 6,500 b/d of 35 gravity oil and 5.1 MMcfd of gas through a 44/64 in. choke with 1,850 psi wellhead pressure from an undisclosed zone above upper Jurassic Brae. The well also drilled 800 ft of oil bearing sands in the Brae, but the interval was not tested.

NAL RESOURCES LTD.

and Elan Energy Inc., both of Calgary, completed a $61 million (Canadian) purchase of oil and gas assets from Chevron Canada Resources Ltd. NAL paid $40.8 million of the purchase price and Elan paid the rest. The western Canada leases produce 3,800 b/d of oil and have reserves of 13.8 million bbl of oil and 4.4 bcf of natural gas.

SUNCOR INC.,

Toronto, acquired from an undisclosed seller reserves of about 2.4 million bbl of crude and liquids and 151 bcf of gas in Central Alberta for $13.3 million (Canadian), increasing its production by 5% and its reserves base 11%. The deal involved purchasing six leases and exchanging two others.

SOUTHWEST ROYALTIES INC.,

Midland, Tex., acquired Midland Southwest Corp. and the related assets of M.A. Hanna Co., Cleveland, including a gas gathering system in Reagan, Schleicher, Tom Green, Irion, and Sterling counties, Tex., and various oil and gas partnership interests. The deal covers 220 oil and gas leases, 70 of which are operated, and reserves of about 472,000 bbl of oil equivalent.

DANSK UNDERGRUNDS CONSORTIUM

(DUC) 5604/22-3 well on the Lulita prospect in the Danish North Sea encountered "reasonable amounts" of oil, but the operator declined to disclose flow rates. The deviated well was drilled to 12,300 ft by the Maersk Giant jack up in 210 ft of water. The joint venture well was suspended as a possible producer pending study by DUC and Den norske stats oljeselskap AS, operators of the licenses holding the structure.

TRANSPORTATION

RUSSIA'S OIL AND GAS MINISTRY

authorized Asea Brown Boveri, Ladenburg, Germany, to hire Scientific Software-Intercomp Inc., Houston, to provide advanced leak detection and monitoring software and services for a 12-20 in. products pipeline from Gubkinsk to Ysnybalik in Northeast Siberia. The control room will include SSI's real time model and its system for advanced leak detection and location. The project is in response to a catastrophic 1989 natural gas liquids pipeline leak and explosion (OGJ, June 12, 1989, p. 25).

MEXICO'S

attorney general's office reported the Apr. 22 explosion in Guadalajara (OGJ, Dec. 7, 1992, Newsletter) was caused by several factors. The report said the main causes were the presence of gasoline in the sewer system, inadequate response by city officials, and placement of a water pipeline over a gasoline pipeline. Nine government officials, including four Petroleos Mexicanos officials, charged in connection with the explosion have been released on bail pending further investigation.

THAI PETROLEUM PIPELINE CO.

is to receive three Sulzer (U.K.) Ltd. pump-sets for the Lumlukka pump station on its 200 km refined products pipeline, which will run from the Sriracha refinery to the Saraburi distribution depot. John Brown Ltd. ordered the pumps in a 21 million ($1.6 million) contract.

COASTAL PETROLEUM NV

began bunkering operations for clients using the Strait of Magellan off southern Chile by offering 245,000 bbl of storage capacity for marine gas oil at Punta Arenas and Puerto Gregorio. Deliveries are available by truck, pipeline, or vessel. Intermediate and bunker C fuel oil are to be available soon. Counting the new sites in Chile, Coastal offers bunkering services at 25 ports throughout the Americas.

EXPLORATION

OCCIDENTAL PETROLEUM CORP.

acquired a 70% interest in the 213,600 acre Alva block off Palawan Island, Philippines, bringing its holdings to 1.3 million contiguous acres off the island. The block is adjacent to the 405,500 acre West Culion block acquired by an Oxy group in October and is near Block SC-38 where Oxy and Royal Dutch/Shell made the Malampaya discovery in May (OGJ, Nov. 2, 1992, p. 40). Oxy's exploration program includes a seismic acquisition program and the option to drill two wildcats.

NATIONAL PETROLEUM CORP. OF NAMIBIA

(Namcor) let an exclusive contract to Nopec AS, Naersnes, Norway, to conduct a multi-client 2-D seismic survey off Namibia and market and license the data. The survey will cover 10,000 line km of regional seismic from the Angola border to 22 30 in the south. Acquisition is to start this month and be complete in 5 months. Full data are to be available by yearend. The agreement includes marketing and licensing 1,160 line km of 2-D seismic data acquired by Namcor in 1992, which is being processed and will be available early this year.

SAGA PETROLEUM AS'S

34/7-21 new pool wildcat off Norway flowed at a rate of 5,600 b/d of oil through a 12.7 mm choke. Total depth is 9,800 ft below seabed. Saga started well 34/7-21A, which will be sidetracked 5,900 ft below the seabed to appraise the reservoir.

COHO RESOURCES LTD.,

Calgary, received an oil exploration permit in the Gulf of Gabes on the southeast coast of Tunisia. ETAP, the Tunisian state oil company, said the Alyane permit covers 290 sq miles.

COMPANIES

AMERADA HESS LTD.

agreed to take over 80% of the exploration license interests off the U.K. held by Unocal U.K. Ltd. by acquiring all the stock of Unocal U.K. Unocal will retain 20% of the interests through subsidiaries. Prior to the sale Unocal will transfer its remaining U.K. assets, including Heather field, to an indirect Unocal subsidiary. The sale includes 21 exploration blocks totaling about 200,000 net acres. Unocal's interests in the blocks average 39%. The deal is to be complete by Mar. 31.

AMERICAN ARBITRATION ASSOCIATION

awarded more than $150 million of compensatory damages to Energy Buyers Service Corp., Houston, in an arbitration case against USX Corp. Energy Buyers, a natural gas marketing firm, charged USX breached an Oct. 15, 1982, contract, and the arbitrator found the contract valid and binding. The arbitrator also found USX failed to perform its obligation to buy at least 7 MMcfd of gas for 10 years and USX violated its duty of good faith and fair dealing under the agreement.

BANISTER INC.,

Toronto, made a $56.5 million offer to buy Majestic Construction, Edmonton. Majestic and Banister's pipeline division have been long time pipeline construction rivals. Banister said it has a conditional acceptance for the offer from Perini Corp., which has a 74% interest in Majestic, Banister's offer is contingent on obtaining 90% of Majestic shares.

NORANDA INC.,

Toronto, is merging Norcen Energy Resources Ltd. and North Canadian Oils Ltd., both of Calgary. Noranda will exchange its 50.5% controlling interest in North Canadian for Norcen shares. The merger, to close by March or April, would make Norcen the eighth largest oil and gas producer in Canada with assets of about $3.75 billion (Canadian). Noranda also has interests in Canadian Hunter Exploration Ltd., also of Calgary, but has no plans to include it in the merger.

LOUISIANA LAND & EXPLORATION CO.,

New Orleans, agreed with Phillips Petroleum International Investment Co. to buy all outstanding stock of Phillips Petroleum Production Indonesia Inc., including an undivided 15% interest in the production sharing contract covering 2,005 sq km Kakap offshore acreage in West Natuna basin about 483 km south of Singapore. The Kakap block includes two producing oil fields, two oil fields for which development plans have been submitted recently, and several exploration prospects.