INDUSTRY BRIEFS

Exploration

Arakis Energy Corp., Vancouver, B.C., and joint venture partner State Petroleum Corp. signed a 25 year production sharing agreement covering a 12.2 million acre oil block with an option for another 30 million acres in Central Sudan. A $1 million signing bonus will be paid by the end of September to the government of Sudan. Phase 1 development calls for oil production of 25,000 b/d from Heglig field by December 1995 to supply a refinery at Muglad.

Marathon Oil U.K. Ltd.
suspended its 16/8c-13 wildcat in the U.K. North Sea. The well cut more than 150 ft of condensate pay in upper Jurassic sandstone but was not drillstem tested. Evaluation of the discovery will continue. The Sedco 712 semisubmersible rig drilled the 17,000 ft well in 350 ft of water 155 miles northeast of Aberdeen, Scotland, and 5 miles south of Marathon's East Brae platform.

Petroleos de Venezuela SA
unit Maraven completed a 13 month, $21 million, 3D seismic survey of a 2,700 sq km block in Lake Maracaibo. The survey identified new prospects in the 30 year old Ceuta and Lama areas. Maraven has been processing 3D data from the lake since 1985.

Drilling-production

Saudi Aramco extended for 2 years a contract with Pool Arabia Ltd., a unit of Pool Energy Services Co., Houston, under which Pool Arabia's Rig 145 has been drilling and reworking wells off Saudi Arabia in the Persian Gulf. Aramco also let a 2 year contract calling for Pool Arabia's Rig 193 to conduct onshore well workovers in the kingdom.

Cambodia Petroleum Exploration Co.
will spud the first of two wells off Southwest Cambodia in December, according to Nikkei Weekly, Tokyo. The company is 100% owner of a 3,670 sq km concession 75-200 km offshore.

Norske Conoco AS
let a 500 million kroner ($68.5 million) contract to Kvaerner AS, Oslo, for hookup and completion of the Heidrun tension leg platform on Norwegian Sea Block 6507/7. Connection of six modules to the concrete hull will begin in October 1994 at Gands Fjord, Stavanger. Offshore hookup will begin in June 1995 with start of oil flow planned later that year.

Amoco Eurasia Petroleum Co.,
chosen through competitive bidding, and Russian joint stock companies Yuganskneftegaz and Yugraneft will develop Priobskoye field in the Khanty-Mansiysk autonomous okrug of western Siberia. Amoco estimates the field, about 65 miles west of Nefteyugansk, holds as much as 5 billion bbl of recoverable oil.

Amoco Argentina Oil Co.
reached an 11 year high in oil production in August with an average 47,000 b/d. Its production comes from a contract area west of Comodoro Rivadavia. Amoco said the increase stemmed from start-up of seven waterflood projects during October 1990-February 1992, drilling of extension wells, and use of seismic evaluations and fracture treatments.

Pool Energy
agreed to pay $7 million cash to Atlantic Pacific Marine Corp. for the Ranger IV, V, and VI jack up rigs. The units, designed by Bethlehem, are suited for workover and shallow drilling in 12-90 ft of water. The rigs will be added to Pool's Gulf of Mexico fleet of three jack ups and 13 platform rigs.

Oryx Ecuador Energy Co.,
a unit of Oryx Energy Co., Dallas, let contract to a strategic service alliance led by Baker Hughes Inc. for drilling, equipment, and related services in a 15 well development drilling program during the next 11/2 years in Coca-Payamino field on Block 7 in Ecuador. The alliance, which includes BJ Services Co., Schlumberger, and Pool Energy, plans to use two rigs operated by Intairdril Ltd. for the program.

Hunt Oil Co.,
Dallas, agreed to sell 365 leases in 11 states to Germany Oil Co., also of Dallas, for an undisclosed price. Leases are in Mississippi, Alabama, Texas, Louisiana, Oklahoma, Arkansas, New Mexico, Colorado, Wyoming, Montana, and North Dakota. The sale is scheduled for completion in mid-November.

Plains Petroleum Co.,
Lakewood, Colo., agreed with its main gas buyer for higher prices on deliveries during Oct. 1, 1993-Dec. 31, 1994. Prices for its Southwest Kansas Hugoton field gas during fourth quarter will increase to $1.90/ MMBTU from $1.80/MMBTU. In 1994, Hugoton prices will be $2/MMBTU during the winter and $1.80/MMBTU the rest of the year. Its Northeast Colorado Niobrara gas will be sold during the same periods at the same price schedule, except that volumes sold in April-October 1994 will be $1.751 MMBTU.

Signature Energy Corp.,
Calgary, agreed to buy producing oil and gas leases in the Haynes area of Alberta from Flotan Corp. for $600,000 (Canadian). Assets include a 10% working interest in a recent 1,200 b/d discovery, a farmout on two offset locations scheduled for drilling in October, and another farmout where a 3D seismic program is to begin in October on five sections of land in the Alderson/Enchant area of southern Alberta.

British Gas plc
unit British Gas Trinidad Ltd. and Texaco Inc. unit Texaco Trinidad Inc. will develop Dolphin gas field off Trinidad's east coast following an agreement with National Gas Go. of Trinidad and Tobago. The field, 55 miles offshore, holds proved and probable reserves of 2 tcf. Operator British Gas and Texaco this month signed a 20 year deal to supply gas from Dolphin to National Gas to meet growing domestic use. Start of production is scheduled for 1996.

Santos Group,
Adelaide, bought interests from Ampolex Ltd. in petroleum assets in Jackson-Moonie Pipeline, Western Australia, and the Queensland section of Cooper/Eromanga basin, which are expected to increase Santos' oil production by 600,000 bbl of oil equivalent (BOE)/year. Proved and probable reserves included in the deal are estimated at 6.3 million BOE. The purchase, subject to due diligence review and granting of consents and approvals, was effective Sept. 1.

Mitchell Energy & Development Corp.,
The Woodlands, Tex., increased its exploration and production capital budget by $15 million to $235.4 million because of higher gas prices, good results from drilling, and a large inventory of prospects. Mitchell plans to use more than $10 million of the increase to drill wells, mostly in Texas and New Mexico, with the balance earmarked for things such as purchase of leases and seismic data.

Beard Oil Co.,
Oklahoma City, is courting partners for as much as 75% of its combined working interest in three waterflood projects within 75 miles of Abilene, Tex. Recoverable secondary reserves in the package are estimated at 2.25 million bbl of oil. Reservoir depths are 2,200-6,300 ft.

Acquisitions

Cabot Oil & Gas Corp., Houston, signed a letter of intent to buy gas producing leases and gathering systems in Boone, Kanawha, and Raleigh counties, W.Va., from CNG Transmission Corp,, Clarksburg, W.Va. The Seth-Whitesville area leases produce a combined 3 MMcfd from 42 wells. Cabot also agreed to buy CNG's interest in 25 Pineton field wells in western Pennsylvania's Indiana County. The wells produce a total of 1 MMcfd.

Companies

Transco Energy Co., Houston, received $150 million upon the Sept. 13 closing of its sale of Transco Energy Ventures Co. to the National Power America Inc. unit of National Power plc. It will record a third quarter pretax gain of $50 million from the sale, or $31 million after taxes. Transco Energy Ventures will operate as American National Power.

Phillips Petroleum Co.'s
direct and indirect subsidiaries accepted an offer to sell their stock in Phillips Australian Oil Co. and Phillips Petroleum International Australia Pty. Ltd. to Ampolex Ltd., Sydney. The subsidiaries hold a combined net equity of 25% in Harriet oil and gas field in the Carnarvon basin off Western Australia, as well as associated exploration acreage.

Nova Corp.,
Calgary, plans to sell production unit Novalta Resources Inc. Nova, whose main business is pipelines and petrochemicals, offered Novalta for sale in 1990 and 1991 as part of a restructuring plan but pulled it off the market. Novalta, with production of 70 MMcfd, has reserves of 364 bcf and 4.6 million bbl of oil and natural gas liquids.

Conoco (U.K.) Ltd.
and BP Exploration Operating Co. Ltd. agreed to exchange North Sea acreage. Conoco will take BP's 20% interest in Block 9/12b, 25% in Block 16/61a South, and 50% in Block 48/20b, all operated by Conoco. In return BP will acquire Conoco's 28% stake in Block 21/15a and 30.1% in Block 21/15a, both operated by BP.

Western Gas Marketing,
Calgary, converted 80% of a 205 MMcfd gas sales contract with ANR Pipeline Co., Detroit, into individual 10 year sales agreements worth about $1.5 billion with five Wisconsin utilities. WGM beginning Nov. 1 will sell a combined 159 MMcfd of Alberta gas to Wisconsin Gas Co., Milwaukee; Wisconsin Public Service Corp., Green Bay; Wisconsin Power & Light Co., Madison; Wisconsin Natural Gas Co., Racine; and Wisconsin Fuel & Light Co., Manitowoc. WGM is negotiating proposals with other ANR customers to resell the remaining 46 MMcfd still covered by the ANR contract, which has a remaining term of less than 2 years.

An executive team
will plan and execute the merger of petrochemical and polyolefins operations of Finland's Neste Corp. and Norway's Den norse stats oljeselskap AS (Statoil). Start-up of the new company is scheduled for Jan. 1, 1994.

Pipelines
Tejas Gas Corp., Houston, completed its $380 million purchase of most of Exxon Co. U.S.A.'s Texas and Louisiana intrastate natural gas pipeline systems. Closing was Sept. 15. Tejas acquired all outstanding stock of Exxon Gas Systems Inc., Monterey Pipeline Co., Humble Gas Transmission Go., and Humble Gas Systems Inc. The sale included Exxon's West Clear Lake gas storage field near Houston.

Canada's
National Energy Board will conduct a hearing starting Nov. 22 in Calgary on a proposal by Interprovincial Pipe Line Inc. to build $252.2 million (Canadian) worth of pipeline expansion facilities during 1994. The proposal calls for 437 miles of 16 in. pipeline construction, reactivation of idle lines, switching to products from crude in one line, and adding or modifying pumping units. The company also wants to add a 150,000 bbl storage tank at Edmonton and another tank of the same size at Regina, Sask.

Norway's
Statoil said demand for Norwegian gas could justify laying a fourth trunk line to Central Europe as early as 1998. Alternatively, Europipe or Zeepipe capacity could be expanded. Statoil expects to export more than 2 tcf/year of gas in 2000. Troll gas deliveries are expected to total 1.6 tcf/year by that time.

SunShine Interstate Pipeline
partners bought Five Flags Pipe Line Co. from Midcoast Holdings No. One Inc., a unit of Midcoast Energy Resources Inc., Houston, including 42 miles of 10 in. and 15 miles of 8 in. gas pipeline in Escambia and Santa Rosa counties, Fla. The Five Flags line crosses SunShine's proposed route and can transport as much as 80 MMcfd to industrial customers in Pensacola and the surrounding area. SunShine pipeline is to include a 170 mile interstate line from Pascagoula, Miss., to Okaloosa County, Fla., followed by a 502 mile intrastate line to Polk County, Fla.

Refining

Giant Industries Inc., Scottsdale, Ariz., started a 3,000 b/cd diesel hydrotreater and sulfur recovery unit at its 20,800 b/cd Ciniza refinery near Gallup, N.M., reducing to 0.05% the sulfur content of diesel fuel refined at the plant as required Oct. 1 by the Clean Air Act amendments of 1990. The new unit also helps Giant qualify to receive sulfur dioxide emission allowances through 1999 by reducing sulfur in the plant's air emissions.

Statoil
shut down the cracker at its Mongstad, Norway, refinery for routine maintenance. The 40 day program is expected to cost 40 million kroner ($5.5 million). It said the first turnaround of the unit 2 years ago revealed exceptionally heavy wear.

Marathon Oil Co.
commissioned a 60,000 b/d distillate hydrotreating unit at its 168,000 b/cd Robinson, Ill., refinery, completing a 4 year, $250 million distillate desulfurization project undertaken to meet federal environmental requirements. The hydrotreater provides enough capacity for Marathon to process blending streams from other refineries in its system, as well as from the Robinson plant.

ICF Kaiser Engineers Inc.,
Oakland, will conduct a 4 month, $350,000 feasibility study to upgrade Russia's Orsk refinery. The study, to be managed from ICF's Pittsburgh office, will focus on construction of a continuous catalytic reformer,

Tankers

South Korea's Daewoo Shipbuilding & Heavy Machinery Co. will build five double hull, 280,000 dwt very large crude carrier tankers for Shell International Marine Corp. Each vessel will cost $100 million. Delivery is scheduled during 1995.

Exports-imports

The bottom heading in an Aug. 30 table on the value of U.S. oil and gas exports and imports should read, "Percent of world imports," not exports (OGJ, Aug. 30, p. 42).