INTERNATIONAL BRIEFS

ENVIRONMENT

TUNTEX PETROCHEMICALS INC. will start up a $1.7 million catalytic oxidation system designed for halogenated hydrocarbons at a 285,000 metric ton/year purified terephthalic acid plant being built in Taiwan. The system, designed and fabricated by CSM Environmental Systems Inc., Brooklyn, N.Y., uses Allied-Signal Inc.'s halohydrocarbon destruction catalyst to eliminate volatile organic compounds and carbon monoxide in the presence of halogens.

PROCESSING

VEBA OEL AG estimates a $2 billion price tag for a proposed 100,000 b/d plant to upgrade extra heavy crudes from Venezuela's Orinoco belt into lighter crudes. The plant, under consideration by Veba and state owned Petroleos de Venezuela SA, would include a Veba Combi Cracking unit that alone would cost about $500 million.

CHINA'S petrochemical production value increased almost 7% to $9.7 billion the first 9 months of 1991 despite money shortages and problems caused by floods in East China. Ethylene production increased 9.3% in the period to 1.12 million metric tons. China Petrochemical Corp. processed 1.8 million b/d of crude during the 9 months, including some imports, a 2.1% boost from the year ago period.

CHINA'S Tianjin United Chemical Corp. licensed Union Carbide Corp.'s Unipol PE process for its 60,000 metric ton/year polyethylene plant at Tianjin (OGJ, July 8, p. 24). To be complete by mid-1994, it is the fourth such plant in China and will boost Unipol PE operating capacity in the country to 320,000 tons/year.

NINGBO BESTON PETROCHEMICAL CO. LTD., a venture of Beston Petrochemical Co. Ltd., Hong Kong, and Chia Tai Co. Ltd., Thailand, received approval from China's Ministry of Foreign Economic Relations and Trade to build a 120,000 metric ton/year polyvinyl chloride plant in Ningbo, Zhejiang province. The company is capitalized at $11.25 million, making it the largest foreign funded enterprise in the province. The project's cost is expected to exceed $93.73 million.

SPAIN'S Repsol Petroleo SA started up a 50,000 metric ton/year pyrolysis furnace supplied by Linde AG to boost capacity at its 390,000 ton/year ethylene plant in Tarragona, Spain.

ABU DHABI NATIONAL CO. let a $2.8 million contract to National Petroleum Construction Co., Abu Dhabi, to supply, erect, and modify three storage tanks at the Umm Al Nar refinery. The project includes engineering, design, testing, and calibration of the three tanks, as well as modifying 11 tanks. Target completion date is August 1 992.

EXPLORATION

MOBIL OIL DOMINICA INC. started seismic surveys in the Azua and San Pedro de Macoris basins off the southern coast of the Dominican Republic.

MOBIL EXPLORATION & PRODUCING PERU Oct. 23 spudded 1 Ponacillo, its first wildcat in Peru's Huallaga basin. Mobil expects to reach 5,000 m total depth by mid-February. Mobil chose the site near Tarapoto in the northern jungle after Halliburton Geophysical Services Inc. completed 578 line km of seismic survey last December prior to a guerrilla attack that damaged Halliburton equipment. Halliburton and drilling contractor Parker Drilling Co. resumed work in April, protected by army patrols.

CONOCO (U.K.) LTD.'S 29/2a-6 wildcat, 150 miles east of Aberdeen on North Sea Block 29/2a, flowed at a combined stabilized rate of 9,000 b/d of 39' gravity oil and 5.9 MMcfd of gas through a 40/64 in. choke from three intervals. Total depth is 5,760 ft. On variable chokes Conoco gauged a combined maximum flow rate of 14,455 b/d of oil and 7.4 MMcfd of gas for short periods. An appraisal well will be drilled immediately.

AB SVENSKA SHELL, Statoil AB, and Sweden's Oljeprospektering AB (OPAB) relinquished a 10,000 sq km area in the Baltic Sea south of Oland Island and extending to the boundary of Polish waters. The group spent $4.67 million for seismic surveys and other studies that did not show oil and gas structures in the area.

GARNET RESOURCES CORP., Houston, and Niugini Energy Pty. Ltd., Denver, received assignments on Chevron Niugini Pty. Ltd.'s 25% interest in Petroleum Prospecting License 77 in Papua New Guinea (OGJ, June 19, 1989, p. 31), bringing Garnet's stake to 40% and Niugini's to 60%. Chevron defined a large seismic structure, half of which underlies the license, but declined its option to drill. A commitment wildcat is to be drilled in 1992.

PETROLEOS MEXICANOS ordered a second portable telemetry crew from Comesa, Seismograph Service (England) Ltd.'s joint venture partner in Mexico. The helicopter assisted operation will acquire 1,700 line km of seismic data in 18 months beginning in January 1992, joining a crew operating in Mexico since last January.

SUMMIT RESOURCES LTD., Calgary, agreed to form a joint venture with Lakewood IX Partnership & Co. Ltd., Montreal, for an exploration program on Summit leases in southern Alberta. Lakewood will contribute as much as $3 million (Canadian) for the program. First phase, to be complete by yearend, includes Lakewood purchasing 35% interest in 94,000 acres, drilling six wells, and a seismic acquisition program.

TRANSPORTATION

A GROUP led by BC Gas Inc., Vancouver, entered the bidding for Alberta & Southern Gas Ltd., Calgary, a Canadian unit of Pacific Gas & Electric Co., San Francisco. A&S buys about 27.5% of Canadian gas exports for California. Pan-Alberta Gas Ltd., Calgary, also is bidding for A&S. TransCanada PipeLines Ltd. is a potential buyer and agreed to buy an Alberta-California pipeline operated by PG&E unit Pacific Gas Transmission Co.

TRANSCANADA PIPELINES shipped 354.3 bcf of gas on its Canadian main line in the third quarter, up 4.6% from the same period last year. Exports to the U.S. increased 44.2% to 137.7 bcf, and domestic shipments fell 10.9% to 216.6 bcf.

SAUDI ARAMCO OIL CO. expanded facilities at the Yanbu, Saudi Arabia, offshore crude terminal, adding two structures to one berth to allow loading of tankers as large as 500,000 dwt. Expansions are also planned at Ras Tanura and Juaymah in the eastern province. During 1990, a total of 2,350 tankers loaded at the three terminals, 216 more than in 1989.

THE SOVIET Stanislav Yudin derrick barge will operate in the North Sea under a joint venture agreement between owner PO Kaliningradmorneftergaz (KMNG) and Norway's Stolt-Nielsen Seaway AS. A Norwegian court approved the deal, ruling there is no evidence of a previous agreement between the Stena Group and KMNG for use of the barge. Preparations are under way for its first North Sea job, the midline tie-in on the Zeepipe gas pipeline for Den norske stats oljeselskap AS.

CANADA'S National Energy Board will begin hearings in Calgary Dec. 2 on an application by Interprovincial Pipe Line Inc., Edmonton, for a 10% toll increase. Interprovincial operates the main crude oil pipeline system from Alberta to markets in Central Canada and the U.S. After initial hearings in Calgary, the venue will shift to Toronto Jan. 14, then return to Calgary Feb. 10 for final arguments.

NOVA CORP. shipped 2.19 tcf of natural gas through its Alberta pipeline system in the first 9 months of 1991, up 5% from last year. Average receipts for the period were 8 bcfd, compared with 7.7 bcfd in 1990. Total shipments out of Alberta during the period were up 6% at 1.76 tcf. Total deliveries at the Alberta-British Columbia border were down 4% at 374 bcf and up 8% at 1.08 tcf at the Alberta-Saskatchewan border.

DRILLING-PRODUCTION

SANTA FE ENERGY RESOURCES INC. increased its holdings in Argentina's El Tordillo oil field to 18% with a $15.8 million payment to Yacimentos Petroliferos Fiscales SA. YPF made an additional 40% interest in the field available in August. Santa Fe had acquired 10% interest in the field through its Petrolera Santa Fe SA unit in July (OGJ, July 15, p. 48) when YPF made an initial 50% interest available. Partners are Tecpetrol 42.75%, Inter-Rio Inversiones SA 18%, Energy Development Corp. (Argentina) Inc. 11.25%, and YPF 10%.

NEW ZEALAND'S Petrocorp and Canada's Petro-Canada agreed to buy Gulf Canada Resources Ltd.'s interest in oil and gas rights and its 36% interest in the related gas processing plant in the Hanlan-Robb area of western Alberta. The deal includes interests in undeveloped leases. Production from the acquired leases was about 41 MMcfd of gas, 178 tons/day of sulfur, and 27 b/d of pentanes plus last year.

HADSON ENERGY RESOURCES CORP., Oklahoma City, 1 Tanami wildcat off Northwest Australia (OGJ, July 29, p. 35), 5 miles southwest of Harriet field, began production from lower Cretaceous Flag sand at a stabilized rate of 1,770 b/d of oil through a 1/2 in. choke on initial test. It is being produced into Harriet terminal facilities on Varanus Island at a rate of 375 b/d through a 1/4 in. choke. Hadson and partners plugged 2 Tanami on a separate structure.

UNOCAL THAILAND LTD. began development of Jakrawan gas field in the Gulf of Thailand. Unocal tested significant amounts of gas in five of six appraisal wells drilled this year. The first wellhead platform will be installed by mid-1992. A 12 well drilling program is planned to develop about 70 bcf of reserves. Production is scheduled to start in second quarter 1993 and initially will be processed through Funan field's central processing platform.

A GROUP led by Alcorn International, Houston, plans a $48 million first phase development of West Linapacan field off the west coast of Palawan, Philippines, Philippine energy officials said (OGJ, Dec. 12, 1990, Newsletter). First phase production is expected to reach about 20,000 b/d in first half 1992, equal to 10% of the country's imports. Ultimately, the field is expected to produce 40,000-50,000 b/d from reserves estimated at 109 million bbl.

ORYX ENERGY CO. received approval from U.K. Department of Energy to develop Strathspey field on Block 3/4a in the northern North Sea. Estimated reserves are 90 million bbl of oil and 334 bcf of gas. Production is to begin late in 1993. Peak gross liquids production of 43,000 b/d is expected in 1994, with gas production peaking at 120 MMcfd by the late 1990s. Production will move through a subsea system tied back to Ninian central platform.

WOODSIDE PETROLEUM PTY LTD. let contract to Single Buoy Moorings Inc. to design and build a disconnectable riser turret mooring for Cossack oil field off Australia. The system will moor a 152,000 dwt tanker based floating production storage and offloading unit to be used in field development. Installation is scheduled for second quarter 1993.

AFRICA'S largest oil production platform, installed by a joint venture of Nigerian National Petroleum Corp. and Mobil Corp. as part of first phase development of Edop oil field off Nigeria, will go on stream this month. An associated pipeline network is almost complete. Edop field was discovered in 1981, and production capacity is expected to be about 165,000 b/d.

LASMO PLC and Nova Scotia reached a royalty agreement for Cohasset-Panuke oil field development, 155 miles off Halifax, N.S. The province will receive 2% of profits initially and 30% after recovery of start-up and development costs, estimated at $565 million. Production is to begin in 1992 from reserves estimated at 2530 million. Nova Scotia Resources (Ventures) Ltd. is Lasmo's equal partner in the project.

GHANA NATIONAL PETROLEUM CORP. received wellhead adapters, tubing hangers, and associated 16 in. pressure installation riser system and tools from ABB Vetco Gray Inc., Houston, completing the second phase of equipment delivery for the South Tano field subsea development project off Ghana (OGJ, June 17, p. 28). The equipment will be used to convert mudline suspension Wells to subsea producers. The first two subsea tree assemblies to complete the wells will be delivered by ABB Vetco before yearend.

JAPAN'S Export-Import Bank will provide a maximum $40 million in untied loans-those not requiring Japanese business participation-to Trinidad and Tobago for that country's secondary oil recovery and refinery modernization projects (OGJ, July 8, p. 24). The projects are expected to hike the country's foreign exchange earnings capacity by $200 million/year by boosting crude and products production.

OCELOT ENERGY INC., Calgary, signed a joint venture agreement with NCE Resources Group for a gas development drilling program in Southwest Saskatchewan. NCE will provide $3.2 million for an 81 well drilling program in the Freefight area.

COMPANIES

GREAT LAKES CHEMICAL CORP., West Lafayette, Ind., agreed in principle to buy Shell U.K. Ltd.'s 36.7% interest in Octel Associates and Associated Octel Co. Ltd. for about $138 million. Octel Associates produces motor fuel antiknock compounds for more than 70% of the markets outside North America. The acquisition will bring Great Lakes' interest in Octel to about 87.8%.

PANCANADIAN PETROLEUM LTD., Calgary, received an average price of $16.86/bbl for conventional crude during the first 9 months of 1991, excluding the hedging program, compared with $19.37/bbl in 1990. Hedging boosted the average price during the period to $21.08/bbl. During the third quarter, PanCanadian received $17.48/bbl without the hedging program and $19.72/bbl with it.