U.S. BRIEFS

COMPANIES

USX CORP.'S board approved a plan to pursue disposition of its Apollo Gas Co., Carnegie Natural Gas Co., and FWA Drilling Co. Inc. units as part of a restructuring program. Apollo and Carnegie are part of USX's gas gathering operations that had a throughput of 1.108 tcf last year. FWA drilled 2.8 million ft of hole last year, up 13% from 1989.

DRILLING-PRODUCTION

FLOYD OIL CO., Houston, paid $12.1 million to two undisclosed sellers for an average 31% working interest in 58 wells and an average 1% royalty interest in four wells in Rosewood and Oak Hill fields of Upshur and Rusk counties, Tex., and an average 67% working interest in 17 gas wells and small overriding royalty interests in Texas Hugoton field, Hansford County, Tex.

A GROUP led by Marathon Oil Co. is fabricating a 20 slot platform for installation on South Pass Block 86 in the Gulf of Mexico. Initial capacity will be 100 MMcfd of gas and peak production more than 20,000 b/d of liquids from reserves pegged at as much as 70 million bbl of oil equivalent. The structure is to be installed early next year over an existing template in 388 ft of water. Marathon, Louisiana Land & Exploration Co., Amerada Hess Corp., and OKC Limited Partnership are equal partners in the block.

NEW ENGLAND ENERGY INC., Westborough, Mass., shed essentially all its non-rate regulated oil and gas assets in sales to Kerr-McGee Corp. in the Gulf of Mexico and to Noble Affiliates Inc. in Texas, Oklahoma, and the gulf. Proceeds were about $23 million, yielding an after tax gain of $4 million for the first quarter.

READING & BATES CORP., Houston, implemented a recapitalization plan that eliminated about $289 million in senior debt and lease obligations and canceled a contingent debt of $50 million. In exchange, it issued about 198 million shares of common stock to its senior debt creditor group. It also obtained a new $112 million credit facility to, among other things, repay debts of $31 million.

BELDEN & BLAKE ENERGY CO., North Canton, Ohio, agreed to pay Pennohio Inc. and Texiana Gas LP 7, 8, and 9 $2.3 million and 900,000 Belden & Blake limited partnership units for interests in 144 oil and gas wells in Northeast Ohio and Northwest Pennsylvania. Belden & Blake Corp. operates the wells.

REFINING

CHEVRON U.S.A. let a $40 million contract to Fluor Daniel for a low sulfur diesel fuel project at its 46,000 b/d Salt Lake City refinery. Phase 1 covers preliminary engineering, construction planning, and cost estimating for a desulfurization unit and offsite facilities. Phase 2 calls for detailed engineering, procurement, and construction, along with dismantling, refurbishing, and moving in equipment from Chevron's shutdown Cincinnati refinery.

CHEVRON will dismantle its 22,500 b/d Kenai refinery at Nikiski, Alas., on Cook Inlet in June after it produces asphalt for the summer. The company blamed marginal profits and a need to spend about $1.4 million/year as its share of a Cook Inlet spill response preparedness program to comply with a new state law.

CLARK OIL & REFINING CORP. let contract to M.W. Kellogg Co. to engineer, procure, and manage construction of a 24,000 b/d hydrotreater, a hydrogen plant, and offsite facilities at its 160,000 b/d Hartford, Ill., refinery. Cost of the project, to be complete by mid-1993, is about $60 million.

SUN REFINING & MARKETING CO. let contract to Jacobs Engineering Group Inc., Pasadena, Calif., to study pollution prevention at its refineries in Marcus Hook, Pa., Toledo, Tulsa, Philadelphia, and Yabucoa, P.R. The study will include ways to reduce hazardous waste generation, disposal cost, and liability.

PETROCHEMICALS

UNION CARBIDE CORP. expects earnings reductions of $18 million in first quarter 1991 and $50-75 million for the full year. The declines will stem from interrupted production at its Seadrift petrochemical plant near Port Lavaca, Tex., in the wake of a Mar. 12 explosion and fire (OGJ, Mar. 18, p. 53). Carbide plans to have Seadrift's 880 million lb/year ethylene and 2 billion lb/year polyethylene units substantially back on stream by the end of this month. The 850 million lb/year ethylene oxide unit is to restart in the third quarter.

PIPELINES

TRANSCOLORADO GAS TRANSMISSION CO., Denver, will conduct an Apr. 25-May 24 open season to allocate firm and interruptible capacity on its 310 mile, 300 MMcfd pipeline proposed to skirt the western slope of the Rocky Mountains from northern Colorado to New Mexico. It will provide a link with the El Paso and Transwestern gas pipeline systems.

ANR PIPELINE CO. began gas sales through its Springboro interconnection to Cincinnati Gas & Electric Co. in Warren County, Ohio. ANR will be able to deliver as much as 100 MMcfd to the Cincinnati utility, which serves 400,000 customers in Southwest Ohio, northern Kentucky, and Southeast Indiana.

ENDEVCO INC., Dallas, and members of the Bass family, Fort Worth, called off talks regarding a joint venture to lay the proposed Cornerstone pipeline. Negotiators could not agree on terms of the venture. Endevco will continue to pursue the project, which calls for 44 miles of 36 in. gas transmission line from Delhi, La., to Vicksburg, Miss. The company reports "significant" interest expressed by prospective third party shippers.

ASSOCIATED NATURAL GAS CORP., Denver, completed the acquisition of MEGA Natural Gas Co., a Tulsa gas gathering and marketing company, in a deal valued at $81 million in cash, securities, notes, and assumed debt. With operations in Texas, Oklahoma, Kansas, and New Mexico, MEGA at yearend 1990 owned more than 1,000 miles of pipeline and sold more than 375 MMcfd of gas.

EXPLORATION

PACIFIC ENTERPRISES OIL CO. created a central exploration region to be based in Denver. Exploration work formerly conducted by PEOC's Oklahoma City and Midland, Tex., regional offices will be consolidated with its existing Rocky Mountain exploration program in Denver. As many as 25 explorationists will be added to PEOC's Denver staff through company transfers and/or new hires to pursue Permian basin and Midcontinent plays.

PRUDENTIAL CAPITAL CORP., Dallas, agreed to invest as much as $35 million in an exploration and development partnership with Collins & Ware Inc., Midland, Tex. Prudential is the sole limited partner for operations in West Texas and Southeast New Mexico.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.