INTERNATIONAL BRIEFS

GOVERNMENT

IRAN settled the last claims by U.S. members of Iranian Oil Participants for compensation resulting from seizure of assets in the 1979 revolution. The Hague Tribunal, set up to adjudicate claims and counterclaims as part of a 1981 agreement, awarded $9 million to ARCO. The European partners in IOP have settled their claims separately but there are still a number of outstanding claims by U.S. companies that operated outside the IOP onshore area of Iran.

REFINING

THAILAND approved the country's first base lube oil plant. The government endorsed state owned Thai Petrochemical Industry's $170 million plant to produce 265 million I./year of base lube oil and 1 .059 billion I./year of fuel oil. Thailand currently imports base oil from Australia, Japan, Singapore, and Taiwan for blending and bottling at 12 local plants.

LAGOVEN SA plans to spend $76 million to hike capacity of the catalytic cracker at its Amuay refinery in western Venezuela to 108,000 b/d from 85,000 b/d.

CURACAO'S Isla refinery's alkylation unit will be out of service for an undetermined period after being damaged by a Jan. 11 fire. The fire was brought under control quickly, and two workers were injured. The rest of the refinery's operations won't be affected. Venezuela's state owned Petroleos de Venezuela SA has leased the refinery since 1985.

PETROCHEMICALS

VENEZUELA'S state owned Pequiven estimates investment in the country's petrochemical industry will total $1.3 billion in 1991. Pequiven's share of outlays is expected to total $820 million, with private domestic and foreign joint venture participation targeted at $480 million. Pequiven, a unit of state owned Petroleos de Venezuela SA, plans a major expansion the next 5 years, aiming for exports of plastics, industrial chemicals, and fertilizers from three major complexes currently under construction (OGJ, Jan. 14, p. 35).

INDIAN PETROCHEMICAL CORP. LTD. is considering proposals from Chevron Corp., Ethyl Corp., and Shell International for an equity interest in a 100,000 metric ton/year alpha olefins plant proposed for its gas based Gandhar petrochemical complex. Final choice awaits government approval of IPC's selection of Lummus Crest or Stone & Webster gas cracker technology.

TECNOCONSULT SA assigned a contract to Raytheon Co., Lexington, Mass., unit United Engineers & Constructors to provide engineering for a $130 million replacement cogeneration power plant operated by Maraven SA at the Cardon, Venezuela, refinery. A UE&C unit will also provide engineering services for an upgraded centralized control system for the refinery. Tecnoconsult, Jantesa SA, and Asincro SA make up a group founded to provide new refining facilities in Venezuela.

EXPLORATION

HOCOL SA'S 1 Rio Saldana wildcat in the Tolima B contract area of the Upper Magdalena Valley, Colombia, flowed 280 b/d of oil from 233 ft of Cretaceous Monserrate sandstone and 11 ft of Tertiary Basal sandstone at 3,147-3,486 ft. Hocol holds 55% interest and Triton Colombia 45% in the well, 100 miles south of Bogota. Hocol said production from 1 Rio Saldana could be increased to 1 000 b/d with artificial lift. The partners plan to drill a delineation well early this year.

DRILLING-PRODUCTION

CORPOVEN SA, Caracas, named Cliffs Drilling Co., Houston, as the winning bidder for two 2 year contracts to supply land rigs for daywork operations in eastern Venezuela. Terms are being negotiated. The rigs are to arrive in Venezuela and begin operating in second quarter.

BP CANADA INC. signed a 15 year, $200 million (Canadian) contract to sell B.C. Gas Inc., Vancouver, B.C., 45 MMcfd of gas. Deliveries are to begin Nov. 1 from BP's West Sukunka field in Northeast British Columbia.

PHILLIPS PETROLEUM INTERNATIONAL CORP. EGYPT IG 14-4 (Sethos West) appraisal well on South Umbarka concession in Egypt's Western Desert flowed gas and condensate from two zones. The first zone tested at 26 MMcfd and 1,023 b/d through a 1 in. choke from pay at 12,322-366 ft, and the second zone flowed 24 MMcfd and 2,256 b/d through a 11/4 in. choke from 12,220-264 ft. Also, Phillips' IG 14-5A (Sethos North) appraisal on the same concession flowed 342 b/d of oil through a 1 in. choke from pay at 7,156-96 ft.

KAISER-FRANCIS OIL CO. OF CANADA, Tulsa, acquired leases and interests in gathering and compression facilities in Therien area, Northeast Alberta, from Sceptre Resources Ltd. for an undisclosed price. Included are interests in 23 wells, 15 of them on production, along with proved reserves of 1.4 bcf of gas and 28,800 undeveloped acres.

INDONESIA plans to increase its gas production in 1992 by about 7.1% to 4.85 bcfd from 4.53 bcfd this year, the Jakarta Post reported. The country plans to boost production by another 388 MMcfd in 1993. The director of exploration and production for state owned Pertamina said the increase will allow the company to hike gas sales to the state power company, fertilizer producers, and a gas liquefaction company.

PIPELINES

AN INVESTIGATION of the Soviet Union's June 1989 Nizhnevartovsk-UFA NGL pipeline explosion found that violations of building norms and rules during the line's construction caused the accident that killed 575 persons, Tass reports. The investigation showed that an excavator damaged a pipe during construction, which failed to resist the load and broke, and a spark later ignited the escaping gas liquids. Tass said nine officials have been charged and several others have been accused of negligence (OGJ, June 19, 1989, p. 27).

TRANSCANADA PIPELINES LTD. asked Canada's National Energy Board to approve a 19.6% increase in pipeline tolls retroactive to Jan. 1 to cover expansion costs in 1990 and higher operating costs. The company also is seeking a 30.9% revenue increase to $1.2 billion and a return on equity increase to 14.5% from 13.25%. An interim toll increase of 12.1%, which was effective Jan. 1, has been approved by NEB.

COMPANIES

BOW VALLEY INDUSTRIES LTD., Calgary, approved a $241 million capital spending program for 1991, a 17% increase from the $206 million program of 1990. Bow Valley will hike worldwide exploration drilling outlays by 10% in 1991 to $50 million. Its plans include the first deep test on farmout acreage in the St. Lawrence Lowlands, Quebec, four test wells in the North Sea, and 11 wildcats in Indonesia.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.