Industry Briefs

Correction

Offshore Europe exhibition and conference, which took place in Aberdeen this month, was referred to incorrectly as Offshore Northern Europe (OGJ, Sept. 15, 1997, pp. 26-27).

Cogeneration

Texaco Development Corp., White Plains, N.Y., acquired a 24% equity interest in a 276-MW cogeneration plant under construction at Anonima Petro* Italiana's (API) 77,000 b/d refinery at Ancona, Italy. The power plant, scheduled for 1999 start-up, will use integrated-gasification combined-cycle technology licensed by Texaco Inc. (OGJ, Dec. 9, 1996, p. 43). The plant will gasify 7,700 b/d of visbreaker tar from the refinery and coproduce 65,000 kg/hr of steam, which API will buy from API Energia SpA, a group of API 51%, Asea Brown Boveri 25%, and Texaco. Electricity will be sold to Italian utility ENEL SpA.

Power

Total SA, Electricit? de France, and Indonesian state electric utility PLN are planning a 200-MW gas-fired power plant in southern Sumatra's Jambi region. Partners will perform a feasibility study to confirm site suitability and optimal plant capacity and plan to start construction as soon as possible. Indonesia wants the plant on stream by 2000 to meet growing electricity demand in the region.

El Paso Energy International Co.,
Houston, signed a joint development agreement with Cia. Paranaense de Energia (Copel), Petrobr s Distribuidora SA, BHP Power Inc., and British Gas of Brazil to build a 440-MW thermoelectric power plant fueled by natural gas. The plant will be built at Arauc ria, Paran , Brazil, in two phases beginning in second quarter 1998. A 300-MW unit will start up in 1999 and a 140-MW unit by 2000. Copel will purchase the power.

Exploration

Apache Corp., Houston, disclosed a new field discovery in the C segment of its Zhao Dong block in China's Bohai Bay (see map, OGJ, June 1, 1992, p. 30). On test, the C-4 discovery well flowed a combined 8,321 b/d of 34-38° gravity oil from five zones in the lower half of an 1,800-ft gross interval. The zones are in Mesozoic sediments at 6,950-7,620 ft and contain about 266 ft of net pay. The well indicated potential production in 11 zones. Apache expects to complete testing of the remaining zones in mid-October. The untested intervals include Shahejie sands containing a potential 200-250 ft of net pay.

Total SA
signed a production-sharing contract with Indonesian state oil company Pertamina covering North Sokang block in the East Natuna basin, about 150 km northeast of Natuna Island in the South China Sea. Water depth on the 10,000 sq km block is as much as 100 m. Total has earmarked $25 million for exploration on the block.

Apache's
Beni Suef-1X exploratory well on the 6.8 million acre East Beni Suef concession in Egypt's western desert flowed 5,200 b/d of 42° gravity oil from a 40-ft Kharita interval at about 7,000 ft through a 48/64-in. choke with flowing tubing pressure of 269 psi. The well was drilled to 11,000 ft TD. The new field discovery also indicates pay in the Bahariya and Abu Roash formations, which Apache is testing. The field is already considered the largest western desert oil find since Qarun, Apache's 1994 discovery 75 miles north. Apache and Seagull Energy Corp. are 50-50 partners in the concession.

Two groups
are competing for a gas-prospective offshore block in Thailand's latest bidding round. An alliance of Unocal Corp., Total SA, and Norway's Statoil and a group of Thailand's PTT Exploration & Production plc (Pttep), Amerada Hess Corp., and Kerr-McGee Corp. are vying for Block W7/38 in the Mergui basin, covering 19,675 sq km in deep waters of the Andaman Sea. The block is one of seven in the Thai Andaman Sea offered in the 16th bid round for exploration/production rights.

Lasmo plc,
London, won three exploration concessions in Pakistan. Lasmo will hold 95% and the Pakistani government 5%. Pab concession covers 7,390 sq km and is sandwiched between Lasmo's Bela North and South concessions to the west and Kirthar West block to the east. Offshore Indus Blocks A and B cover a total 14,700 sq km southwest of Karachi. Pab is a virgin license that Lasmo sees as prospective because of the 1997 Bhit-2 discovery on nearby Kirthar block, which is to be appraised in 1998 for potential gas production in 2001. Earlier drilling in the Indus offshore blocks yielded gas shows.

Refining

Jordan Petroleum Refinery Co. Ltd. (JPRC) selected M.W. Kellogg Co., Houston, to perform a detailed feasibility study on the expansion of Jordan's only refinery, a 100,000 b/d plant at Zerka. JPRC wants to upgrade the refinery to meet demand for high-quality refined products through 2010.

Sun Co. Inc.
plans fourth quarter maintenance turnarounds on four units at its 307,000 b/d Philadelphia refinery. All four units are in the 130,000 b/d Point Breeze section of the refinery. Sun plans a 5-week turnaround of its 40,000 b/d fluid catalytic cracker beginning Oct. 3, a 3-week turnaround of its 75,000 b/d crude distillation unit beginning Nov. 3, a 3-week turnaround of its 30,000 b/d catalytic reformer beginning Nov. 10, and a 3-week turnaround of its 40,000 b/d naphtha hydrotreater beginning Nov. 10.

Nigerian
oil workers petitioned the government to retract the contract let to Total SA for repair and management of the Kaduna refinery (OGJ, Sept. 1, 1997, p. 42). Members of the Petroleum & Natural Gas Senior Staff Association of Nigeria claim the government will lose as much as $118 million in the deal. They concede that Total may be retained as a consultant in the project.

Drilling-production

Norway's Statoil began talks with potential U.S. and Mediterranean customers for gas from giant Snohvit gas find in the Barents Sea off Norway. Statoil says Snohvit and nearby Askeladden and Albatross discoveries have estimated gas reserves of more than 10 tcf. The state firm is planning to exploit these remote finds with subsea developments and export gas to shore near Hammerfest for treatment and liquefaction. Statoil says a development plan could be submitted to the Ministry of Industry and Energy next spring at the earliest, which could lead to production as soon as 2001.

Santa Fe International Corp.,
Dallas, let contract to Singapore's Keppel Fels Ltd. for construction of a universe-class jack up for heavy-duty work in harsh environments. Work will begin immediately, with delivery expected in third quarter 1999. The Galaxy III rig will be similar to Santa Fe's Galaxy I and II rigs, also designed and built by Keppel Fels. Galaxy II will be delivered late next year. Amoco (U.K.) Exploration Co. will enter a 2 or 3-year drilling contract with Santa Fe for drilling operations to use the Galaxy III in the U.K. North Sea. Contract value will be $130-189 million, depending on terms.

Unocal Thailand Ltd.
tested two gas wells in Moragot field in the Gulf of Thailand. This brings to four Unocal's number of successful appraisal wells drilled on Block B12/27 (OGJ, Jan. 21, 1991, p. 28). Moragot-3 flowed 11.1 MMcfd of gas and 203 b/d of condensate at 6,868 ft. Moragot-4 flowed a combined 12.8 MMcfd of gas and 420 b/d from two zones at 7,126-10,266 ft. Unocal says the field could contain 250-300 bcf of recoverable gas, with an upside potential of 500 bcf. Unocal, operator of the block, holds a 35% interest. Pttep holds 45%, Amerada Hess Exploration (Thailand) Co. 15%, and Japan's Moeco Thai Oil Development Co. 5%.

Azerbaijan's
Caspian Sea Chirag-1 platform will begin producing early in October, says Norway's Statoil. Statoil is a member of a group-Azerbaijan International Operating Co.- undertaking a phased development of Chirag, Azeri, and Gunesh* fields off Azerbaijan (OGJ, Aug. 25, 1997, p. 42). Drilling of the first production well is under way on Chirag-1 platform. Initial output is expected to be 7,500 b/d of oil, rising to 100,000 b/d in late 1999 or early 2000 as all 17 planned producers come on stream.

Amerada Hess Ltd.
let a £50 million ($80 million) contract to ABB Vetco Gray U.K. Ltd., Aberdeen, for supply of a subsea tree and wellhead systems, with support services, for the next 5 years. Amerada said lead times for ordering and supplying subsea trees are typically 12-18 months, which can be a problem for fast-track developments. The contract is intended to reduce lead times to 6 months.

Thai Shell Exploration & Production Co. Ltd.
halted oil production from Nang Nuan because of excessive water coning. This is the second time production at the one-well field in the Gulf of Thailand has been shut in (OGJ, Apr. 18, 1997, p. 73). Total output from the No. 2 well was 4.25 million bbl of oil in 800 days of production. Production peaked at 10,540 b/d on Jan. 1 of this year. Excessive water intrusion began to damage the reservoir only 22 days later. Thai Shell recently launched a seismic campaign in the southern part of the field, where a bigger oil structure may exist.

Scotland's
Atlantic Margin region soon will have a £1.5 million ($2.4 million) plant to process 20,000 metric tons/year of drill cuttings. The plant will be developed by Shetland Offshore Environmental Services Ltd., Lerwick, U.K., and built at Lerwick Harbor. It is due to open early next summer.

NTI Resources Ltd.,
Calgary, acquired the Benakat oil field in southern Sumatra, Indonesia, as part of a purchase agreement with PT Suryaraya Teladan (SRT). NTI purchased all shares of SRT from PT Abdi Nusaputra and will issue 750,000 new shares and assume SRT's third-party debt. SRT and Pertamina are equal partners in an EOR project in Benakat.

Companies

Russia's Bashneftegeophyzika and Tatneftegeophyzika geophysical companies, based in Ufa and Bugulma, respectively, agreed to form a new company with FXC Exploration Ltd., Guildford, U.K. The new venture, FXC Poisk, will be based in Ufa and intends to carry out its first seismic survey this winter in western Siberia. The firm is looking for further work in Russia and aims to expand into international exploration as a seismic contractor and partner in exploration and production projects.

BP Exploration Operating Co. Ltd.
let a £2 million ($3.2 million) contract to John Wood Group plc, Aberdeen, to provide optical fiber well management equipment for 20 wells in its Eastern Trough Area Project development. Two wells in U.K. North Sea Marnock field will be fitted with the new system, along with 18 platform and subsea wells in Mungo, Machar, and Monan fields. Wood group claims the optical fiber system is the most advanced for high-pressure, high-temperature well monitoring, able to operate at up to 15,000 psi and 200° C.

Premier Oil plc
acquired farmouts in a number of Australian exploration licenses under a deal with Boral Energy Resources Ltd., Sydney. Premier will take a 29.43% interest in Yolla discovery in the Bass basin off Australia. Premier says the find could have reserves of more than 500 bcf of gas. The deal includes exploration acreage in the Bass and Carnarvon basins. Premier will be responsible for Yolla appraisal and field development and has committed to drilling two wells and acquiring seismic data in the Bass basin.

Petrochemicals

A gas leak in a new furnace at National Plastic Co.'s Al-Jubail vinyl chloride monomer plant in Saudi Arabia caused an explosion that injured four employees. The two remaining furnaces resumed normal production about 24 hr after the accident. Plant output was reduced to 950 metric tons/day from 1,150 tons/day. The company said damage was contained immediately by a safety system.

Sasol Chemical Industries Ltd.,
a unit of Sasol Ltd., Johannesburg, will build a 140,000 metric ton/year methanol plant at Sasolburg, South Africa. The 100 million rand project involves converting an existing reactor to produce crude methanol, adding a distillation unit, and modifying storage tanks and dispatch facilities. The unit will replace Sasol's 20,000 ton/year plant at Sasolburg. Production will meet South African demand for the foreseeable future, said Sasol, and replace imports. Start-up is scheduled for second half 1998.

Pipelines

TransCanada International (TCI), Petroleum Authority of Thailand (PTT), and other Thai investors are planning a 63,000 b/d, $361 million products pipeline from central Thailand to the northern and northeastern regions. TCI will have a 49% share, and the Thai interests 51%. TCI's initial investment will be about $50 million. The 550-km northern section will be 16 in. from Saraburi to Phitsanulok and 14 in. from there to Lampang. The 360-km northeastern line will be 16 in. from Saraburi to Nakhon Ratchasima and 14 in. from there to Khon Kaen. The northeastern line will be completed in 2000 and the northern line in 2002.

BHP Petroleum Pty. Ltd.
acquired a 7% interest in the $2.7 billion (Australian) Bolivia-Brazil gas pipeline (see El Paso Energy brief, p. 48). BHP will buy a direct share for $34 million and supply $154 million in nonrecourse project funding. The line will link Bolivian gas fields to industrial markets in Brazil. Start-up is scheduled for 1999. Partners in the project are Petroleo Brasileiro SA 43%, Enron Corp. and Shell Oil Co. 14% each, and BG plc and El Paso Energy 7% each. The balance will be held by Brazilian and Bolivian investors.

Chinese Petroleum Corp.
Chairman Lee Shu-chiu resigned after accepting responsibility for the Sept. 13 gas pipeline explosion that killed five in Kaohsiung, Taiwan (OGJ, Sept. 29, 1997, p. 42). This is the second time in a year that CPC has shuffled its top leadership as a result of a serious accident. CPC Pres. Pan Wen-yen also tendered his resignation, but it was refused by Taiwan Premier Vincent Siew, who said Pan must remain in office to handle the effects of the accident. An initial investigation indicated that workers replacing the aging pipeline failed to make sure it was empty before beginning work.