U.S. BRIEFS

GAS PROCESSING

GULF COAST FRACTIONATORS (GCF) and Conoco Inc. agreed to develop a 40,000 b/d expansion at GCF's 80,000 b/d Mont Belvieu, Tex., gas processing plant. GCF is a 50-50 general partnership between Oxy USA Inc.'s NGL Fractionators Inc. and Mitchell Energy & Development Corp.'s Liquid Energy Corp. Oxy's 50% share of production will go to Trident NGL Inc. when Trident buys Oxy's natural gas liquids business late this summer. Conoco holds an option for ownership in the existing fractionator.

SPILLS

A SHIP RAMMED an ARCO Alaska Inc. drilling rig Aug. 13, 30 miles southwest of Anchorage, Alas., spilling 4,000 gal of diesel fuel into Cook Inlet. The fuel tank on the Atlantic Seahorse, working for ARCO, ruptured upon impact, causing an oil sheen measuring 2 miles by 250 yd. Booms and absorbent pads were dispatched for cleanup.

A BARGE owned by Crowley Maritime subsidiary Pacific Alaska Fuel spilled about 13,000 gal of diesel fuel into the Bering Sea off Kotzebue in Northwest Alaska. The barge was en route to Eskimo villages on the Bering Sea coast carrying 86,000 gal of heating oil.

EXPLORATION

PLAINS RESOURCES INC., Houston, stopped at 16,500 ft on 1 Miami Fee wildcat in Sabine Wildlife Refuge, Cameron Parish, La., after cutting thick gas/condensate pays in Oligocene sands. Plains was to drill deeper to a postulated Eocene structure underlying a 20,000 acre lease block surrounding the discovery. After payout, Plains will own a 42.5% interest, Texaco Exploration & Production Inc. 33.3%, Lasmo Energy Corp. 20%, and Cliffs Oil & Gas Co. 4.2%.

DRILLING-PRODUCTION

MERIDIAN OIL INC. agreed to pay $260 million for Union Texas Petroleum Holdings Inc.'s onshore Lower 48 oil and gas assets. Leases in the Gulf Coast, West Texas, Northwest New Mexico, and the Rocky Mountains at yearend 1990 held proved reserves of 20 million bbl of oil and 129 bcf of gas. Union Texas last April completed the sale of its U.S. offshore oil and gas assets for about $475 million.

TRANSCO EXPLORATION PARTNERS LTD. 1 TXP in Chalkley field, Cameron Parish, La., flowed 14.5 MMcfd of gas and 659 b/d of condensate through al 17/64 in. choke with 8,325 psi flowing tubing pressure from perforations at 15,288-452 ft in new Miogypsinoides pay sands below producing Miogyp reservoir B sands. Transco, which drilled the well on 1,440 acres under a farmout agreement with Exxon Corp., holds a 100% interest in production below Miogyp reservoir B.

GOODYNE RESOURCES INC., Tulsa, in conjunction with Stratford American Oil & Gas Corp., Phoenix, agreed to buy interests in about 937 wells in West Texas, Southeast New Mexico, and Oklahoma from National Cooperative Refinery Association, McPherson, Kan., for about $30 million. Acquired properties produce about 7 MMcfd of gas and 1,100 b/d of oil.

DEKALB ENERGY CO., Denver, sold interests in wells in 18 Texas oil and gas fields to three undisclosed buyers. Net reserves amount to 1.8 million bbl of oil and 4 bcf of gas, or about 8% of Dekalb's U.S. reserves. It expects to gross about $15.9 million, less adjustments for production since Jan. 1 , 1991, reducing production for second half 1991 by about 150,000 bbl of oil equivalent (BOE). Dekalb's total 1991 production is expected to be about 10% more than 1990 production of 7.3 million BOE.

LATIMER COUNTY in Oklahoma's Arkoma basin produced 25 bcf of gas last May, state production figures show. This is 20.8% of the state's gas production for the month and two to three times the county's production before completion of Natural Gas Pipeline Co. of America's AG line and Arkla Energy Resources' AC pipeline. Proposed expansion of the two pipelines could allow greater gas production from the area.

BRADMAR PETROLEUM CORP., Oklahoma City, acquired interests in 65 wells in Central Oklahoma, adding $845,000 to its future net revenues. Bradmar and affiliated limited partnerships also agreed in principle to sell interests in 76 oil and gas wells in Calumet field, Canadian County, Okla., for $2.7 million to undisclosed buyers. A definitive agreement is expected early in September. The interests represent about 5% of Bradmar's future net revenues.

PIPELINES

VALERO NATURAL GAS PARTNERS LP, San Antonio, asked the Federal Energy Regulatory Commission for a permit to lay a $3 million, 400 MMcfd, 3 1/2 mile, 24 in. gas pipeline from its existing line near Penitas, Tex., to Petroleos Mexicanos' 42 in. line outside Reynosa, Tamaulipas, Mexico. Valero also asked the Department of Energy to approve gas sales through the line as a new export point into Mexico. Pemex supports the project as an open access line.

ANR PIPELINE CO. filed with FERC to build a 47 mile pipeline in Louisiana connecting its system to the Tennessee Gas Pipeline Co. (TGP) line. ANR said the line could be owned by either or both companies. The proposal is an alternative to TGP's proposed 233 mile spur (OGJ, Apr. 29. p. 46) but would allow TGP to flow its requested 535 MMcfd. Interconnections would be in Caldwell and St. Mary parishes, La.

REFINING

HUNT REFINING CO. is progressing with a $4 million expansion of the No. 2 catalytic reformer at its 36,000 b/d refinery in Tuscaloosa, Ala., boosting reformer capacity to 6,000 b/sd from its current design capacity of 4,000 b/d. The project is to be complete this fall.

EL PASO REFINING INC. completed expansion of its refinery 6 months ahead of schedule (OGJ, Mar. 5, 1990, p. 23), increasing crude processing capacity to 55,000 b/d from 26,000 b/d. It began processing at about 40,000 b/d early this month and is currently capable of processing at capacity.

COMPANIES

MURPHY OIL CORP. hired Smith Barney, Harris Upham & Co. to evaluate options for the contract drilling business of Ocean Drilling & Exploration Co. (Odeco), which merged with Murphy as of July 3 (OGJ, July 22, p. 34). Oil and gas operations and corporate staff of the companies are reorganizing. Odeco's name will change to Murphy Exploration & Production Co. The contract drilling division continues as Odeco.

PETROCHEMICALS

MARKWEST HYDROCARBON PARTNERS LTD. received the basic engineering package for an isobutane dehydrogenation unit from John Brown Engineers & Constructors. MarkWest licensed Phillips Petroleum Co.'s STAR process for converting isobutane to isobutylene for its South Shore Ky., 1,700 b/d methyl tertiary butyl, ether plant. Production is expected to begin by third quarter 1992.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.