INTERNATIONAL BRIEFS

PETROCHEMICALS

A JAPANESE GROUP led by Mitsui & Go. filed claims with Japan's Ministry of International Trade and Industry to cover $675 million in losses incurred by the group's decision to disband Iran-Japan Petrochemical Co. and play no further part in rebuilding the complex, which was badly damaged in the Iran-Iraq war.

PIPELINES

WESTCOAST ENERGY INC., Vancouver, will spend $256 million (Canadian) to expand its natural gas pipeline operations, including a $100 million expansion of its McMahon gas processing plant.

EXPLORATION

AN INTERNATIONAL GROUP recovered 27.5 gravity oil on tests of a second wildcat on the 6.8 million acre Masila block in eastern Yemen, reported interest owner CanadianOxy Offshore International Ltd. The 1 Heijah, drilled to 6,079 ft, yielded undisclosed volumes of oil on drillstem test at 5,238-89 ft and cased hole test at 5,348-62 ft. The well is 24 km south of the group's 1 Sunah discovery on a separate structure. A wildcat soon will spud on a third structure between the two. Partners are Consolidated Contractors International Co. SAL and Pecten Yemen Co.

AUSTRALIA'S Ministry of Resources awarded three exploration permits off Northwest Australia to groups led by Kuwait Oil Co.'s Kufpec Australia, Lasmo Oil plc, and Phillips Petroleum Co.'s Phillips Australian Oil Co. Kufpec received a permit in the Carnarvon basin, Phillips and Lasmo each a permit in the Bonaparte basin-Timor Sea area. The three groups plan to carry out exploration work costing about a combined $155 million (Australian) during the 6 year permit terms.

TEXACO EXPLORATION AZERO INC. and Sun Oil Bolivia Ltd. signed a 30 year agreement with Bolivia's state owned Yacimientos Petroliferos Fiscales Bolivianos covering the 3,851 sq mile Azero block in the foothills of the Bolivian Andes.

INDIA'S Oil & Natural Gas Commission will spud a wildcat off Tuticorin in the Gulf of Mannar in the next 3 months. ONGC's Sagar Prabhat drillship, now working in the PY-4 area off Srikazhi-Mayavaram, will drill the well.

FINA EXPLORATION UGANDA, a unit of Petrofina SA, signed an exploration and production agreement covering 26,800 sq km of the Ugandan portion of Albert and Eduard lakes, including adjacent onshore areas. The 15 year contract calls for outlays of more than $60 million. Initially, Petrofina is committed to seismic in the lake areas, followed by onshore work.

JAPAN PETROLEUM EXPLORATION CORP. (Japex) discovered oil and gas in southern Hokkaido Island, Japan. It estimated the discovery well's productive potential at 900 b/d of oil and 6.3 MMcfd of gas. The well is 2 km east of Tomakomai, near a 1988 gas discovery that currently produces about 8.5 MMcfd. Japex plans a third wildcat in the area in June.

COMPANIES

TOTAL CIE. FRANCAISE DES PETROLES acquired a 25% interest in Cie. Europeene des Petroles, the exploration and production unit of Interagra, the French commercial group with close ties to the Soviet Union and other Communist countries. Total is involved with CEP in Cuba's first production sharing agreement. CEP also has exploration interests in Laos and Viet Nam.

ARCO BRITISH LTD. acquired Chevron U.K. Ltd.'s 50% interest in U.K. southern North Sea Blocks 50/26a and 49/14a and a 25% interest in Block 48/9a. Terms aren't disclosed. The blocks are part of a package of noncore U.K. assets Chevron put up for sale last fall. The deal is subject to partner preemption rights and Department of Energy approval.

PANCONTINENTAL OIL LTD. AND INVERNESS PETROLEUM LTD., both of Calgary, are discussing a merger agreement. Strathfield Oil & Gas Ltd., in which Pancontinental owns a majority interest, also is involved. Inverness and several partners recently bought a 44% fully diluted interest in Pancontinental.

ACQUISITIONS

RWE-DEA, Hamburg, extended to May 13 its $55/share cash tender offer to acquire all common stock of Vista Chemical Co. (OGJ, Mar. 18, p. 50)

SAFETY

BRITAIN'S Health and Safety Executive took over responsibility for offshore safety and will establish an inspection and audit branch in Aberdeen. HSE wants to have 400 persons employed in the offshore safety division by 1995. HSE outlays for are expected to rise to $61 million in 1991 from $22.75 million in 1990.

DRILLING-PRODUCTION

VENEZUELA'S Ministry of Energy & Mines and state oil company Petroleos de Venezuela SA set an Apr. 19 deadline for bids by oil companies participating with Pdvsa in restarting production in 46 marginal, shut in oil fields. Earlier, Pdvsa said it would seek joint ventures in 57 fields (OGJ, Mar. 18, Newsletter). The fields, in nine areas in Falcon, Guarico, and Monagas states and the Delta Amacuro federal territory, are to be reactivated under operating agreements.

INDIA'S Oil & Natural Gas Commission will shut in 90-100 of its 700 oil wells in the Bombay High offshore area for a major workover program. At least 35 wells were shut in at presstime. ONGC and the Institute of Reservoir Studies in Ahmedabad are conducting a study, related to the workover campaign, to identify wells with a high gas:oil ratio. As a result of the workover program, ONGC crude production is expected to fall in fiscal 1991-92 from 424,200 b/d in fiscal 1990-91 vs. a targeted 436,800 b/d for the latter period.

AUSTRALIA'S Ministry of Resources granted Woodside Petroleum Pty. Ltd. group a license to develop Cossack oil field, a 1989 discovery near Wanaea and Griffin fields, also candidates for possible development. Cossack reserves are estimated at 85 million bbl.

TOTAL CIE. FRANCAISE DES PETROLES acquired a 50% interest in El Huemul field in Central Patagonia, near Comodoro Rivadavia, Argentina, for $134 million in a tender called by state owned Yacimientos Petroliferos Fiscales. The field is producing about 18,000 b/d, and Total plans outlays to maintain this production level for more than 10 years. Total said the acquisition consolidates the company's position as the leading private oil producer in Argentina.

GAS PROCESSING

ABU DHABI GAS INDUSTRIES let contract to Stone & Webster Abu Dhabi (U.A.E.) Inc. for detailed engineering and associated services on a project to increase liquids yield from the second gas processing train in Bu Hasa oil and gas field in Abu Dhabi. The upgraded train is to start up in mid-1992.