Correction
Legend colors in Figs. 5-6 of an article on Amoco Corp. activities in the Gulf of Mexico were reversed (OGJ, Jan. 20, 1997, p. 52). The error gave the incorrect impression that most of Amoco's exploration-production investment portfolio is in the Gulf of Mexico.
Companies
Russia's Lukoil reached agreement with Chevron Corp. to acquire 10% of Chevron's interest in the $20 billion, 40-year Tengizchevroil joint venture, operator of Tengiz field in Kazakhstan. When the deal is consummated, Chevron will retain a 45% interest in the JV, Kazakhstan and Mobil Corp. 25% each, and Lukoil 5%. A definitive agreement will be concluded in coming weeks. Tengiz is producing 160,000 b/d. Chevron said peak production potential is 700,000 b/d, adding the recent Caspian Pipeline Consortium restructuring puts development on an even faster track (OGJ, Dec. 16, 1996, p. 22).
U.K. government will not refer Gulf Canada Resources Ltd.'s proposed takeover of Clyde Petroleum plc to the U.K.'s Monopolies and Mergers Commission. Calgary-based Gulf Canada has completed sale of 23 million common shares worth about $235 million (Canadian) it plans to use to help fund its $1 billion takeover bid.
Canadian 88 Energy Corp., Calgary, launched a $652 million (Canadian) takeover bid for Morrison Petroleums Ltd., also of Calgary, offering $10/share cash, to a maximum $140 million, or 1.5 common shares of Canadian 88 for each Morrison share.
Exploration
MacDonald Oil Exploration Ltd., Calgary, will conduct a 6,152-sq mile seismic survey on a concession in southeastern Cuba. It said its program will not be affected by the U.S. Helms-Burton Act-which penalizes firms undertaking business ventures in Cuba involving expropriated U.S. assets-because lands involved were not previously owned by U.S. interests. Calgary-based Genoil Inc. and Cubacan Exploration Inc. are also conducting exploration in Cuba, saying they're not affected by the U.S. law.
State Petroleum Corp., a unit of Arakis Energy Corp., Calgary, found more oil on its 12.2 million-acre concession in Sudan. Its 2a El Nar exploratory well, drilled to 8,021 ft TD, penetrated a separate structure that offsets its 1996 South Toma discovery. Gross oil column of about 394 ft was found in Bentiu 1 formation, with additional potential seen in Bentiu 2 formation. Testing is planned. A delineation well will spud at the location of its other 1996 find, El Toor (OGJ, June 10, 1996, p. 74).
Lasmo plc, London, drilled 1 Gorgoglione, an appraisal of Tempa Rossa discovery on Tempa d'Emma and Gorgoglione concessions in southern Italy, to 17,601 ft TD in 137 days (OGJ, Nov. 4, 1996, p. 38). Well tested at a constrained rate of 6,725 b/d of 20.3° gravity oil with 458 psi wellhead pressure. Operator Lasmo expects to decide on Tempa Rossa development this year. Lasmo has a 40% interest.
Norsk Hydro AS strike on Block 30/8 off Norway may have 200-300 million bbl oil equivalent reserves, according to estimates made after a delineation was drilled on Norske Shell AS-operated Block 30/5. Find is west of Oseberg field. Norway's Petroleum Directorate said two tests were performed on the 30/5-2 well: first flowed 2.5 MMcfd of gas and 20 b/d of oil through a 32/64-in. choke; second flowed 34.6 MMcfd of gas and 97 b/d of condensate through a 72/64-in. choke.
Trinidad and Tobago's Ministry of Energy and Energy Industries awarded a production sharing contract to Amoco Trinidad Gas BV and Repsol Exploracion Tobago covering 181,977-acre block 5(b) about 55 miles off Trinidad (see map, OGJ, Oct. 7, 1996, p. 38). Water depths are 1,000-2,500 ft, deepest ever included in a contract off the country's eastern coast. Operator Amoco has a 70% interest, Repsol the remainder.
Pogo Producing Co. Thailand unit Thaipo Ltd. is concluding a five-well exploration/delineation drilling program on Benchamas structure in the Gulf of Thailand, as well as completing acquisition of an additional working interest in Benchamas and other areas (OGJ, Apr. 1, 1996, p. 34). This will increase Pogo's overall ownership to about 46.3% in the entire 1.3-million acre license, same percentage held in the Tantawan production area (see related story, p. 25). Pogo has budgeted 22 exploration wells and eight development wells on its Thailand license in 1997.
Refining
Uzbekistan state firm Uzbekneftegas will upgrade Fergana refinery, funded in part by a $90 million loan from European Bank for Reconstruction & Development (EBRD), London. EBRD put total cost at $195.5 million, with the balance provided by Uzbekneftegas. Upgrade will enable the plant to process domestic crude with a high sulfur content, as well as improve safety and reduce pollution.
Explosion and fire Jan. 21 at Tosco Corp.'s 150,000 b/d Avon refinery at Martinez, Calif., killed one worker and injured 25 employees and contract workers. Officials said the fire was confined to a hydrocracker. No damage estimates were available. Tosco said some units were shut down for maintenance before the incident. Units not affected by the fire are operating.
Middle East Oil Refinery, an Egyptian-Israe
Rafineria Gdanska SA, Poland, a unit of state-owned Nafta Polska, let two contracts valued at about $30 million to Fluor Corp. unit Fluor Daniel as part of a $400 million refinery modernization at Gdansk. Fluor Daniel is managing contractor and detailed engineering design contractor for offsites and utilities. With Polish partner companies in which it has interests, Prosynchem and Prochem, Fluor Daniel is managing design, procurement, and construction of various units, including the hydro- cracker, hydrogen plant, sulfur plant, isomerization unit, and reformer. Completion is set for third quarter 1999. Plant capacity will increase to 90,000 b/d from 60,000 b/d.
LNG
TSKG Group let a $48 million contract to South Korea's Daewoo Corp. to provide materials and services as part of Nigeria's $4.5 billion liquefied natural gas project on Bonny Island (OGJ, Dec. 30, 1996, p. 28). TSKG consists of France's Technip, Italy's Snamprogetti, Houston's M.W. Kellogg Co., and Japanese Gasoline Corp. TSKG is main contractor for design and construction of Bonny's two-train liquefaction plant, associated facilities, and a gas transmission system (OGJ, Dec. 23, 1996, p. 34).
Drilling-production
BP Exploration Operating Co. Ltd. let a $5.6 million contract to Dresser Drilling & Production Services, Aberdeen, for Foinaven field development drilling services in U.K.'s West of Shetland play. Dresser has worked on 11 Foinaven wells so far; agreement renewal means it will work on the remaining 11 wells, with completion set by yearend 1998. Foinaven development involves two subsea wellhead clusters producing oil into a floating production, storage, and offloading vessel. First oil is expected this summer.
Joint venture of Nigerian National Petroleum Corp. and Royal Dutch/Shell plans to capture 475 MMcfd of associated gas being flared in 31 Niger Delta basin fields. The $680 million work program is expected to be completed by 2007. Plans include 80 MMcfd to be collected from Escravos gas project, 200 MMcfd from South Frocados project, and 80 MMcfd from Greater Ughe
Occidental Petroleum Corp. and Unocal Corp. agreed to a farm-out calling for transfer to Unocal of a 50% interest in Oxy-operated Blocks 12, 13, and 14 production-sharing contracts in northeastern Bangladesh (OGJ, Jan. 23, 1995, p. 19). Within 2 years, venture plans to drill delineation and development wells and build production complexes in Jalalabad gas field, involving Blocks 13 and 14. Production is planned in mid-1998. Within 3 years, venture plans four exploration wells on the three-block area.
Ashland Exploration Inc., Houston, is producing from Pleistocene intervals at 2,000-4,000 ft in Vermilion 410 field in 360 ft of water about 105 miles off Louisiana in the Gulf of Mexico. Operator Ashland plans to have eight wells on stream by Jan. 31. Four wells are producing 45 MMcfd of gas from one platform; a second platform is being tied in. Maximum rates are expected to total about 100 MMcfd. Ashland has a 50% working interest. Other interests are held by McMoRan Oil & Gas Co./MCN Energy Group Inc. joint venture 37.5% and Taurus Exploration Inc., Birmingham, Ala., 12.5%.
Halliburton Energy Services, Houston, and Mobil Exploration & Production U.S. Inc. agreed to jointly develop Mobil's Parks Devonian field in the Permian basin of West Texas. Five horizontal wells will be drilled in 1997, leading to full development and 15 wells. Halliburton, providing capital and project management, will be paid with interest earned from production. Mobil will provide well site supervision and well bore construction engineering. Halliburton will be project manager and lead contractor, providing rigs, well site facilities, subsurface products/services, and all third-party services.
Belco Operating Corp., a unit of Belco Oil & Gas Corp., New York City, agreed with Union Pacific Resources Group Inc. (UPR) and Oxy USA Inc. to form three Areas of Mutual Interest (AMIs) in the Louisiana Austin chalk trend where Belco operates a 50,000-acre AMI (OGJ, Dec. 23, 1996, p. 21). One AMI with UPR covers 46,080 gross acres in Avoyelles and Rapides parishes; Belco will drill one well by June 1. UPR will operate the second AMI, covering 77,800 gross acres in Avoyelles, Evangeline, Rapides, and St. Landry parishes. One well is planned there by Mar. 1. AMI with Oxy covers about 29,760 gross acres in St. Landry Parish. Belco will operate four of 17 possible well units; Oxy the remainder.
Pipelines
Australian Gas Light let a $100 million (Australian) contract to McConnell Dowell Corp. (MDC) to construct an 840-km gas pipeline connecting Ballera with Mount Isa in South West Queensland (see map, OGJ, Jan. 20, 1997, p. 28). Earlier, MDC was awarded a $5.5 million design and procurement contract for the pipeline. Completion is slated for mid-1998.
Apache Energy Ltd. and Australia's WMC Resources Ltd. signed an infrastructure-sharing agreement involving East Spar field in the Carnarvon basin off Western Australia (OGJ, July 10, 1995, p. 31). Deal enables East Spar's gas/condensate stream to pass through Apache's Harriet joint-venture Varanus Island processing complex, eliminating the need to construct an East Spar gas export pipeline and liquids storage. Apache is providing operations services. East Spar and Harriet sales gas is delivered to Dampier-Bunbury gas pipeline and Goldfields Gas Transmission pipeline for transport to markets.
U.K. Department of Trade and Industry approved a Lasmo plc, London, plan to decommission and dispose of the 8-in. Staffa field export pipeline in the U.K. North Sea, used to take oil 9 km to Ninian southern platform from Staffa Block 3/8b subsea satellite. Lasmo plans to remove the line completely for onshore disposal. Staffa was shut in November 1994 when the pipeline clogged with hydrates; remaining reserves were too low to justify redevelopment. Subsea equipment has been removed (OGJ, June 3, 1996, p. 18).
Foothills Pipe Lines Ltd., Calgary, received National Energy Board approval to build an $18 million decompression/recompression complex at Empress, Alta., part of its Eastern Leg expansion project. Project will provide about 690 MMcfd of added export capacity at the U.S. beginning Nov. 1, 1998. New complex will allow the system's eastern leg to operate at elevated pressures, enabling heavier hydrocarbons to be removed from the gas stream by lower-pressure extraction complexes.
LPG
Total Energy Corp., White Plains, N.Y., agreed to acquire from Southwest Gas Corp., Las Vegas, one of the largest U.S. propane peak shaving complexes, including a 2-million gal. propane storage plant at Reno, 600,000 gal of rail car siding capacity, five 1,000-hp compressors, and two independent 3,100-MMBTU/hr mixing/blending systems.
Petrochemicals
BP Chemicals Ltd. plans a feasibility study for a naphtha cracker with capacity to produce 700,000 metric tons/year of ethylene and 300,000 tons/year of propylene at Bojonegoro, near Merak, on Java's western coast. Other participants include Indonesia's PT Salim Chemicals Corp. and Japan's Sumitomo Corp., Tonen Corp., Nichimen Corp., and Mitsui & Co. Ltd. Cracker is intended to supply ethylene by pipeline to the PT PENI polyethylene plant to hike capacity to 450,000 tons/year from 250,000 tons/year. Plans call for start-up in 2000.
COGA Industries LLC, Chicago, let contract to Bechtel for engineering and construction services for a $950 million coal-to-fertilizer project near Girard, Ill. The complex will gasify more than 1 million tons/year of Illinois coal to produce 2,200 tons/day of urea, urea-ammonia-nitrate solution, and other fertilizer products. Project is slated for completion in 2000.
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