INTERNATIONAL BRIEFS

REFINING

SAUDI ARABIAN OIL CO. let contract to Brown & Root Braun to expand and upgrade its 530,000 b/d Ras Tanura refinery (OGJ, Aug. 19, p. 32). Brown & Root's portion of the multibillion dollar project includes planning, conceptual design, detailed design, procurement, contract management, and construction management. The initial contract is to begin immediately and last 6 years with two 3 year options to extend.

ELF FRANCE chose Institut Francais du Petrole's octanizing process for a 750,000 metric ton/year catalytic reformer being built at its Donges, France, refinery. IFP says the process operates at very low pressure with continuous catalyst regeneration and minimizes hydrogen use.

PETROLEOS DEL ECUADOR signed a contract with Ultramar Inc. to process 12,000 b/d of Oriente crude at Ultramar's 100,000 b/d Long Beach, Calif., refinery with products to be sold in the U.S. Petroecuador also is negotiating a 12,000 b/d contract with Petroleos del Peru to sell Oriente crude, taking advantage of a recently approved financial facility by the Andean Development Corp. designed to foster oil trade among Andean nations.

COMPANIES

LASMO PLC, London, plans to sell its U.S. exploration and production subsidiary Lasmo Energy Corp., Tulsa, citing increased U.S. exploration and production costs. The parent company plans to increase U.K. and international drilling to replace reserves. There are 53 Lasmo Energy employees and three with subsidiary Brightstar Gathering Inc. Lasmo Energy's assets are mainly in Texas and Louisiana, with some Oklahoma leases.

ESSO CARIBBEAN & CENTRAL AMERICA agreed to purchase Cia. General de Lubricantes, Mexico City, a privately owned distributor of Exxon Corp. lubricants products. Assets include a 300,000 bbl/year lubricants blending plant, laboratory, and a marketing organization. Plant products include Esso brand passenger car motor oils, heavy diesel oils, and marine, industrial, and metalworking lubricants.

CONSORCIO INTERNACIONAL DE PROYECTOS INTEGRATES SA DE CV (CIPI), a joint stock company, was formed in Mexico City by American Bechtel Inc., Institute Mexicano del Petroleo, and Construcciones Protexa SA de CV. CIPI will provide engineering, procurement, and construction services to Mexico's oil and gas, petrochemical, refining, chemical, and other industries.

ATTOCK OIL CO. and affiliate Pakistan Oilfields Ltd. plan to spend $50 million in Pakistan the next 2 years to expand Attock refinery throughput capacity to 48,000 b/d from 30,000 b/d and for exploration in new Pakistani concession areas.

COGENERATION

DU PONT CANADA INC. is starting work on a $37 million, gas fired, cogeneration plant near Brockville, Ont. The plant will produce electricity and process steam for Du Pont's chemical plant at Maitland, Ont. About 18,000 kw of surplus power will be sold to Ontario Hydro.

EXPLORATION

ELF AQUITAINE NORGE AS tested 16.3 MMcfd of gas and 4,327 b/d of oil through a 52/64 in. choke from Middle Jurassic sandstone at a wildcat on Norwegian North Sea Block 25/4, between Frigg and Heimdal fields. Total depth is 13,609 ft. Operator Elf Norge owns a 33.702% interest in the license, Marathon Petroleum Norge AS 46.904%, Saga Petroleum AS 6.933%, Norsk Hydro Produksjon AS 6.92%, and Total Norge AS 5.541 %.

DRILLING-PRODUCTION

GAS LEAKING into seawater used in the toilet facilities on Shell Expro's Fulmar platform in the U.K. North Sea was responsible for three explosions in the living quarters that injured three persons (OGJ, Aug. 12, Newsletter). A Shell investigation showed seawater for the accommodation unit also was tied into the system used for gas cooling.

U.K. SHARE of Statfjord oil field, straddling the U.K.-Norway median line, fell to 14.46% from 15.91% effective Sept. 1 after redetermination of reserves by DeGolyer & MacNaughton. BP Exploration Co. Ltd., Conoco (U.K.) Ltd., and Chevron U.K. Ltd. will pay back 25 million bbl of oil to Norwegian interest owners led by Den norske stats oijeselskap AS during 2 years. U.K. partners' offtake will be reduced to 91,000 b/d from about 125,000 b/d.

CHINA NATIONAL OIL & GAS CORP. will spend about $450 million to develop a gas field near Golmud in Northwest China's Qaidam basin. Tainan field covers 23.4 sq km and is expected to produce about 96 MMcfd from Quaternary Terrene. Reserves are estimated at 700 bcf. The outlays also cover a proposed 500,000 metric ton/year methanol plant at Golmud, which would be China's largest.

GROUPS led by Conoco (U.K.) and Total Oil Marine agreed to codevelop Caister and Murdoch gas fields in the southern U.K. North Sea. The deal includes a jointly owned pipeline to Theddlethorpe, England. The agreement ends a dispute that led Conoco to decline to sell its share of Caister gas flow and eventually agreeing to sell its 11% working interest. Total, Canadian Occidental Petroleum Ltd. and Ultramar Ltd. agreed to sell Caister gas to National Power to fuel a 600,000 kw power plant being built at Killingholme.

AMOCO NETHERLANDS PETROLEUM CO. plans to put on stream its P/15-14 Dutch North Sea wildcat, which found gas in Triassic Middle Bunter sandstone. Amoco expects flow rates similar to others in the area (OGJ, July 8, p. 25). Ten consecutive successful Middle Bunter wells have been drilled on Block P/15 and adjacent Block P/18. Last month Amoco set up a $220 million loan facility to aid in its share of development (OGJ, Aug. 26, p. 40).

PACIFIC ENTERPRISES OIL CO. plans to sell its 21% interest in oil and gas reserves on the 104,000 acre Block P/15 off Netherlands in the Dutch North Sea to reduce debt. Pacific Enterprises Oil Co. (Netherlands) holds the interests through a joint venture with Amoco Netherlands and others and has participated in a number of discoveries on the block the past several years.

ITALY'S Saipem Engineering Co. and ENI Group subsidiary Techni Petrol, under a contract from National Iranian Oil Co., started a three well program off Iran in the Persian Gulf. First phase of the project is to cost about $37 million and take 18 months to complete. Second phase, including a production platform and liquefied natural gas plant, is expected to cost about $1 billion. Gas production is expected to be 1.2 bcfd.

NIGERIAN PETROLEUM DEVELOPMENT CO. (NPDC) let a $60 million contract to Elf U.K. plc to develop Oredo oil field in Nigeria's Bendel state to boost NPDC production to 10,000 b/d from 3,000 b/d. The move is part of a plan by NPDC parent Nigerian National Petroleum Corp. to hike Nigerian oil reserves by 4 billion bbl to 20 billion bbl. NNPC also plans to invest $250 million during 5 years to develop two blocks in the Niger Delta basin under a joint venture with British Petroleum Co. plc and Statoil.

VIKELT, an 80-20 joint venture of Kelt Energie France and Victoria Mine Co., signed an exploration and production concession with the Polish Ministry of Natural Resources covering 920 sq km in Lower Silesia. The 3 year agreement calls for two commitment wells. The main target is coalbed methane in the Lower Silesian coal basin.

BRITISH GAS EXPLORATION & PRODUCTION LTD. let contract to the Earl & Wright division of H&G Offshore Engineering Ltd. for detailed design, procurement, and follow-up engineering services for the integrated topsides of a drilling-production platform to be installed in North Morecambe gas field in the Irish Sea off the U.K. The platform will weigh about 2,500 tons and substructure about 2,000 tons. Start-up is expected in October 1994.

PAKISTAN'S Oil & Gas Development Corp. 1991-92 development program was approved by Pakistan's cabinet energy committee. The $141 million program includes 12 wildcats and 23 development wells and seismic surveys. Asian Development Bank approved a $50 million loan for field development in lower Sindh province. Additional funding will come from OGDC resources and foreign exchange borrowing from the World Bank.

BRITISH PETROLEUM let contract to the Soviet Union's Ministry of Oil & Gas Industry to deliver metal components for use in construction of deepwater platforms in the North Sea. The components, valued at about $7 million, will be fabricated at Baku, Azerbaijan.

ESSO EXPLORATION & PRODUCTION U.K. LTD. will field test its diverless cluster subsea production system in a lake near Ft. William, Scotland. In the fourth phase of development, contractors Fuel Subsea Engineering Ltd., Woking, England, and Rockwater Ltd., Aberdeen, will test use of remotely operated vehicles to control flexible flowlines and umbilical jumpers in 100 ft and 500 ft of water. The system is designed for marginal fields in water 300-3,000 ft deep.

SOVEREIGN OIL & GAS PLC completed the purchase of a 5% interest in Victor gas field in the U.K. North Sea from Superior Oil (U.K.) Ltd. for $30 million (OGJ, May 13, p. 41). The agreement is effective from Jan. 1, 1991 .

CNG

MALAYSIA'S Petroliam Nasional Bhd. (Petronas) let contracts worth about $6 million to UMW Corp., Tractors Malaysia, and the Scandinavian Truck & Bus Group for construction of seven compressed natural gas (CNG) auto refueling stations and two prime movers and related equipment. The program is part of an effort to convert 10% of all Malaysian vehicles to CNG by 2000. Petronas plans to convert 1,100 vehicles to CNG by August 1992.

GAZ DE FRANCE, in association with French automakers Renault and Peugeot, will develop a prototype automobile designed to operate on natural gas. The study and development work will be based on a Citroen BX GTI fitted with a catalytic converter. The French government, which will provide half of the $810,000 cost of the project, said the Communique auto will be the first commercial car in the world specifically designed for optimum use of natural gas.

PETROCHEMICALS

FERTILIZERS OF TRINIDAD AND TOBAGO LTD. let contract to M.W. Kellogg Co., Houston, for engineering, procurement, and construction advisory services for the first phase of an upgrade at its Point Lisas ammonia plant that will increase capacity to 1,500 metric tons/day from 1,320 tons/day. First phase engineering procurement is under way, construction is to begin in mid-1992, and all phases are to be complete in mid-1993.

SHELL CHEMICAL CO. nd Shell Canada Chemical Co. agreed to a joint resale program to market their polypropylene product lines throughout North America, making the combine the fourth largest producer on the continent. Shell expects an expanded product line, lower distribution costs, and faster product delivery.

ABU QIR FERTILIZER & Chemical Industries Co. inaugurated a $240 million ammonia plant at its chemical complex in Egypt. The new plant has capacities of 1 000 tons/day of ammonia, 1,800 tons/day of nitric acid, and 2,300 tons/day of ammonium nitrate.

MARKETING

TOTAL acquired Exxon Corp.'s downstream assets in Ivory Coast and Senegal. Exxon, operating under its Esso brand, had 60 service stations in the two countries. They will be added to the 130 already operated by Total. The deal increases Total's sales to 122.6 million gal/year from 82.8 million gal/year, making it the market leader in Senegal. It is already the leading distributor in Ivory Coast.

TOTAL will become the operator for a small gasoline retail sales network in Czechoslovakia under an agreement with the Czech company Benzina, Total will take over 75 stations with about 1 0% of the market in Bohemia-Moravia and lease the stations with an option to buy. The move kicks off Total's plans to start a distribution network in the region through purchase or construction of outlets.

TRANSPORTATION

LLOYD'S REGISTER OF SHIPPING said tanker orders accounted for 52.3% of the worldwide shipbuilding order book in second quarter 1991. Tankers under construction totaled 11.4 million dwt, and orders not commenced 24.5 million dwt. The gas carrier order book reached 2.9 million gross tons, its highest level since 1978. Tanker broker John 1. Jacobs, London, said the world tanker fleet grew by 1.8% to 253 million dwt in first half 1991 .

AMOCO EXPLORATION CO. will supply as much as 20 MMcfd of gas to United Gas Co. Ltd., the U.K. subsidiary of UtiliCorp United, Kansas City, Mo. The gas will move through pipelines owned by British Gas under a long term contract and will come from Amoco fields in the North Sea.

UNION GAS LTD., Chatham, Ont., agreed to acquire firm natural gas transportation service for 20 MMcfd on Panhandle Eastern Pipe Line Co.'s system beginning this fall. Panhandle and Union have pipeline connections at Windsor/Detroit with capacity of 150 MMcfd. The agreement gives Union access to U.S. gas supplies for eastern Canada customers, a move Union said complements its present and future major gas sources in western Canada.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.