INTERNATIONAL BRIEFS

LNG

KOREA GAS CORP. signed a letter of intent to buy 1 million metric tons/year of LNG from Malaysia starting in 1995. Korea Gas also is seeking 700,000 tons of LNG from Malaysia for delivery in 1992-94.

TAIWAN may seek LNG from Malaysia to supplement its current supplies from Indonesia. Chinese Petroleum Corp. Pres. Kuan Yungshih said Taiwan probably would need to import 4.5 million tons/year of LNG by 2000. Indonesia is Taiwan's sole supplier, delivering 1.5 million tons/year under a 20 year contract.

REFINING

PETRO-CANADA will close a refinery at Taylor, B.C., and sell some assets to Westcoast Energy Inc., Vancouver. The 33 year old plant will close in July as part of a Petro-Canada streamlining and because of costs required to upgrade it to new environmental standards.

EXPLORATION

UNOCAL THAILAND and partners plan to drill four more wildcats this year on Block 12/27 in the Gulf of Thailand following two discoveries on separate trends there. Unocal 2 Pailin, drilled to 11,572 ft, flowed 14.8 MMcfd of gas and 189 b/d of condensate through a 1/2 in. choke. Unocal 1 Moragot, drilled to 11,120 ft, flowed gas with no details disclosed. Unocal is conducting 2D and 3D seismic surveys covering 9,000 line km on the block.

BP EXPLORATION signed a production sharing contract with Pertamina covering a 9,825 sq km tract off Indonesia's Lombok island. BP plans to spend as much as $101.5 million during 10 years.

CONOCO INDONESIA INC. 1A Kerisi flowed 4,900 b/d of oil from Oligocene Belut and 14.1 MMcfd of gas from Oligocene Gabus on its B Block production sharing contract area in the South Natuna Sea, 600 miles north of Jakarta. The discovery is 12 miles north of Udang oil field and 50 miles east of Belida oil field. Interests are operator Conoco 40%, Texaco Block B South Natuna Sea 25%, Chevron International Ltd. 17.5%, and Inpex Natuna Ltd. 17.5%.

MOBIL CORP. signed an exploration contract covering more than 5 million acres off Guyana. The agreement between Mobil Exploration Guyana Inc. and Guyana provides for an initial 3 1/2 year program in two phases. Mobil will review existing data, reprocess seismic data, conduct field geological and aerial reconnaissance surveys, collect and analyze seep oils, and acquire, process, and interpret new seismic data. Drilling may follow, depending on results of the initial program.

PETROCHEMICALS

OCELOT INDUSTRIES LID. and Alberta Environfuels Inc. plan to build a $15 million (Canadian) petrochemicals terminal at Kitimat, B.C. Alberta Envirofuels, a joint venture of Petro-Canada and Finland's Neste Oy, is building a $350 million petrochemical plant at Edmonton to produce methyl tertiary butyl ether. The Edmonton plant will ship about 12,500 b/d of product to Kitimat for export to California and other markets. The partners had considered building the terminal at Vancouver but ran into environmental opposition.

COMPANIES

SAMEDAN OF TUNISIA INC. acquired Royal Dutch/Shell Group's interests in Tunisia for an undisclosed sum. Samedan will become operator of the Tazerka, Birsa, Oudna, and Isis concessions and Metlaoui production sharing contract.

DRILLING-PRODUCTION

AS NORSKE SHELL let a $10.8 million contract to Aker Engineering, Oslo, for topsides engineering and procurement services for Troll gas platform in the Norwegian North Sea. The 25,000 metric ton topsides will be set on a concrete substructure in 1,016 ft of water. First gas is scheduled for fall 1995.

TOTAL INDONESIA and Inpex of Japan extended by 20 years to 2017 the life of Mahakam production sharing contract in eastern Kalimantan, Indonesia. Last year the Total operated permit produced 84,600 b/d of oil and 493 MMcfd of gas. By 1995-97 gas production should increase to 967 MMcfd, sustaining steady supply to Indonesia's Bontang LNG plant.

ESSAR ENERGY, a division of Essar Gujarat Ltd., Bombay, let contract to Diamond M Offshore Inc., Houston, to manage Essar's drilling fleet, consisting of the Essar Discoverer drillship, Essar Explorer jack up, and nine land rigs.

WILRIG AS of Norway exercised an option to buy the Penrod 70, 74, and 75 semisubmersibles from Penrod Drilling Corp., Dallas, for $12 million. The deal is subject to a detailed purchase agreement and approval by the U.S. Maritime Administration. Last October Wilrig bought the Penrod 76 and 77, now renamed Treasure Prospect and Treasure Legend, and acquired a 20% interest in the Treasure Staworker and Treasure Stawinner, formerly Penrod 73 and 78.

SANTOS LTD.'S 42 Gidgealpa appraisal flowed 1,200 b/d of oil through a 1/2 in. choke from Jurassic Hutton at 6,004-28 ft and 114 b/d through a 1/2 in. choke from Cretaceous Middle Namur at 5,200-13 ft on Moomba block PEL 6 in South Australia. Interests are Santos 60%, Delhi 30%, and Sagasco 10%.

CO-ENERCO CORP., Calgary, will pay $21 million (Canadian) in a purchase of a package of oil and gas assets in northern Alberta from Amoco Canada Ltd., Encor Inc., and Maligne Resources Ltd. Properties in the Zama and Shekilie areas have reserves of 3.3 million bbl of crude, 16.3 bcf of gas, a gas processing plant, and 89,000 acres of exploratory acreage. The sale, to close Mar.1, will increase Co-enerco production to more than 7,000 b/d of liquids and 38 MMcfd of gas.

ACQUISITIONS

RWE-DEA, Hamburg, extended its offer to acquire Vista Chemical Co. to 5 p.m. EST Feb. 25 in order to provide additional information requested by the U.S. Federal Trade Commission under U.S. antitrust law (OGJ, Dec. 24, 1990, p. 26).

NORTH CANADIAN OILS LTD. acquired all shares and debt of Coseka Resources Ltd., Calgary, for $125 million (Canadian). The acquisition increased North Canadian production to 260 MMcfd of gas and 7,700 b/d of liquids. Coseka has proved reserves of 6.9 million bbl of liquids, 179 bcf of gas, and 667,000 metric tons of sulfur.

GAS PROCESSING

MOBIL OIL CANADA cut sulfur emissions 30-45% with installation of North America's first Superclaus-99 sulfur recovery unit at its 30 MMcfd Lone Pine Creek field gas processing plant near Carstairs, Alta. Adding the unit for a $1.5 million (Canadian) test also enabled Mobil to drill four more wells in the field.