INDUSTRY BRIEFS

LNG

QATAR will set up a shipping company to transport exports of liquefied natural gas and petroleum products. Qatar Shipping Co. will be capitalized at about $250 million and is expected to start operations in 1997. A public stock offering is expected this month.

EXPLORATION

MAXUS ENERGY CORP., Dallas, chose three areas in eastern Siberia, each covering about 12.5 million acres, where it plans a 4 year program to evaluate existing seismic data, reprocess seismic, and conduct field work under a technical evaluation agreement with Yakut Autonomous Republic's Yakutskgeofisika. The areas were chosen from a 148 million acre area Maxus studied under a similar agreement signed early this year (OGJ, Jan. 20, p. 28). After 4 years Maxus will have the option to pursue further operations.

MOBIL NORTH SEA LTD. will join operator Bula Oil Ltd., Dublin, and Santa Fe Minerals (Ireland) Ltd. in the 50/13 and 50/14 seismic option blocks in the Celtic Sea. Mobil completed a 102 line km seismic survey, which could be followed by more surveys in 1993. Mobil can elect to drill one well on either block to earn an interest in any license. Mobil earlier acquired a farmout from Aran Energy plc on four blocks in the area (OGJ, Aug. 31, p. 31).

PETROCHEMICALS

VALERO ENERGY CORP., San Antonio, along with Mexico's Promociones Industrial Banamex SA de CV, Grupo Infomin SA de CV, and Spain's Dragados Construcciones SA, signed a memorandum of understanding with Petroleos Mexicanos to build a 13,000 b/d methyl tertiary butyl ether plant in Mexico. Pemex plans to buy under long term contract all or most of the plant's production, and the partners are to buy all butane feedstock from Pemex. Valero will hold a 35% interest in the plant, Promociones 35%, Grupo 20%, and Dragados 10%. The plant could be in service by second half 1995.

REFINING

TWO OFFICIALS of Petrola Hellas SA were ordered held without bail pending trial on manslaughter charges related to a Sept. 1 explosion at Petrola's 100,000 b/d refinery near Athens (OGJ, Sept. 7, p. 34). A third official was released pending trial on the same charges, which include allegedly causing an explosion and injuries without intent. Four persons were killed and 31 injured in the accident. If convicted, the three face a maximum sentence of 10 years in prison.

KYOKUTO PETROLEUM INDUSTRIES LTD. began work on a $270 million upgrade of its 125,000 b/d Chiba, Japan, joint venture refinery that includes a 20,000 b/d residual fluid catalytic cracker and a 35,000 b/d gas oil desulfurization unit. Toyo Engineering Corp. will be contractor for the RFCC unit, to be complete by spring 1995, and Tonen Technology KK is building the desulfurization unit, scheduled for spring 1994 completion. Kyokuto is a joint venture of Mobil Corp. and Mitsui Group.

SKANDINAVISKA RAFFINADERI AB let contract to ABB Lummus Crest to provide SynSat diesel hydrogenation technology for a gas oil hydrotreater revamp at its Lysekil, Sweden, refinery. The low pressure process helps refiners meet sulfur and aromatics specifications for diesel fuel at a reduced capital cost (OGJ, July 1, 1991, p. 55). Lummus Crest licenses the process with technical support from Criterion Catalyst Co. LP.

COURTS

U.S. FIFTH CIRCUIT COURT OF APPEALS in New Orleans dismissed a Midland, Tex., U.S. district court decision in a case involving Parker & Parsley Petroleum Co. claims against Baker Hughes Inc., Dresser Industries Inc., and B.J. Services Co. Inc. The case began in 1983 over alleged shorting of fracture treatment material. The lower court's verdict was for $175 million in compensatory and punitive damages against the defendants. The appeals court ruled the district court lacked jurisdiction, and the claims could be retried in Texas state court. Parker & Parsley, Midland, Tex., plans to pursue the claims.

DRILLING-PRODUCTION

MAXUS ENERGY 2 Surubi on the Mamore block, about 155 miles northwest of Santa Cruz, Bolivia, flowed at a combined rate of 1,530 b/d of 44 gravity oil and 920 Mcfd of gas from zones at 11,050-088 ft and 11,161-203 ft (OGJ, June 22, p. 36). Maxus will place the 2 and the 1 Surubi discovery well on long term tests in October. Maxus holds a 100% working interest in the 3.4 million acre block.

PHILLIPS PETROLEUM CO. NORWAY expects production from four wells in Embla field in the Norwegian North Sea (OGJ, Aug. 17, p. 60) to begin in first quarter 1993 and climb to about 40,000 b/d by mid-1993. Installation of a production platform began early last month. A 3 mile pipeline will carry production to the Eldfisk platform for processing, with further transport by pipeline to Emden, Germany, and Teesside, U.K.

LASMO NORTH SEA PLC let contract to Amec Engineering for preliminary engineering of a second production platform in Markham field in the U.K. North Sea. A minimum facilities platform will be installed on Block 49/51 in 1995 that will be linked to the Markham gas processing platform on Dutch North Sea Block J6. Peak production of about 250 MMcfd of gas is expected. The gas is under contract for sale to Dutch utility Gasunie and Germany's Wintershall (OGJ, Aug. 17, p. 66).

MAGNOLIA METHANE CORP., a unit of Transco Energy Co., Houston, and Velasco Gas Co. Ltd., a unit of Torchmark Corp., Houston, agreed to combine Magnolia's 500 wells and Velasco's 378 wells and related facilities in Alabama's Black Warrior basin to be operated and managed by a unit of Torch Energy Advisors Inc., Houston, Torchmark's asset management subsidiary. Magnolia will receive $10 million at closing of the deal as well as future payments based on performance of the combined leases, to be owned by Velasco.

DRACO GAS PARTNERS LP, Tulsa, purchased 139 oil and gas leases in Texas and Oklahoma from Oryx Energy Co., Dallas, for $22 million. Total net proved reserves are estimated at 35 bcf of gas and 660,000 bbl of oil. Tide West Oil Co., Holdenville, Okla., is acquiring Draco.

CO-ENERCO RESOURCES LTD., Calgary, will increase capital spending to $50 million (Canadian) in 1992 from the previously budgeted $45 million to speed a winter drilling program planned for the Zama/Shekilie area of northern Alberta. Co-enerco has drilled 10 oil wells and two gas wells this year and plans to drill eight more wells by yearend.

ARCO BRITISH LID.'S 43/24-2 appraisal well on Block 43/24 in the southern North Sea flowed 29.3 MMcfd of gas through a 2 in. choke from Carboniferous sandstone. The Neddrill 3 jack up drilled the well to 13,046 ft in 140 ft of water. A 3-D seismic survey is under way on the block.

ARCO began production from Pickerill gas field on southern North Sea Blocks 48/11a, 11b, 12c, and 17b. Peak production of about 200 MMcfd is expected in 1993. Reserves are pegged at 750 bcf of sales gas. Pickerill is in 80 ft of water and produces from Permian Rotliegendes. Two unmanned platforms export the gas to Conoco (U.K.) Ltd.'s Theddlethorpe terminal for further transport to Killingholme, South Humberside, to Powergen's 900,000 kw combined cycle gas turbine power station.

BELLELI SAUDI HEAVY INDUSTRIES let a $6 million contract for fabrication work off Saudi Arabia to OPMI EC, a joint venture of Offshore Pipelines Inc., Houston, and Maritime Industrial Services Co. Ltd., United Arab Emirates. The project includes fabrication and transportation of a bridge support platform, a flare tripod, and several boat landings and bridges for Saudi Aramco Oil Co.'s GOSP-4 complex in Safaniya field in the Persian Gulf. Completion and loadout are set for fourth quarter 1993.

DRESSER-RAND CO., Corning, N.Y., is to start up late this month Porta VI and Porta VII mobile offshore production units in Venezuela's Lake Maracaibo in support of Maraven SA's oil production operations. Dresser-Rand's first unit under contract to Maraven, Porta V, began gas lift operations last June. Each of the three converted jack ups, owned by Cliffs Drilling Co., Houston, is outfitted to process 90-100 MMcfd of gas.

UNOCAL EXPLORATION CORP. let a contract of undisclosed value to Global Pipelines PLUS Inc., Houma, La., to transport and install a 537 ton four pile jacket, 522 ton deck, 42 in. piles, and helideck on Brazos Block A-105 off Texas in the Gulf of Mexico. Global also will lay 10,300 ft and 7,700 ft spreads of 14 in. pipeline, bury pipelines and pipeline risers with 3 ft of cover, and install three pipeline crossings. Work is to be complete by the end of September.

BASIN EXPLORATION INC., Denver, completed purchase of added working interests in Colorado's Denver-Julesburg basin for $5 million (OGJ, Aug. 17, p. 47), increasing its interest in 105 wells it operates and 36 proved undrilled sites. Purchased reserves total about 658,000 bbl of oil and 12.7 bcf of gas. Basin estimates future development costs associated with proved undeveloped reserves and recompletions at $5 million.

FOUR CANADIAN FIRMS agreed to buy part of Canadian Hunter Exploration Ltd.'s natural gas reserves in Helmet field in British Columbia. The sale, effective Dec. 31, involves about 25 bcf. Czar Resources Ltd. will buy a 15% interest, Orbit Oil & Gas Ltd. 25%, Canadian Frobisher Resources Ltd. 10%, and Ranger Oil Ltd. 50%. An agreement includes plans to expand Helmet gathering and compression facilities to boost production to 75 MMcfd from 57 MMcfd.

COGENERATION

NORTH CANADIAN OILS LTD., Calgary, closed a $100 million construction loan from General Electric Capital Corp. for a 1 06,000 kw natural gas fired cogeneration plant in Lake County, Fla. The plant is to be on line by mid-1993. North Canadian Marketing will provide about 21 MMcfd of gas to the plant. Electricity will be sold to Florida Power Corp. under a 20 year agreement and steam to Gold Gem Growers, a citrus processing cooperative.

COMPANIES

TRANSCO EXPLORATION PARTNERS LTD., Houston, declared a final liquidating distribution of $1.06/unit payable Sept. 30, 1992, to unitholders of record Sept. 21. The distribution is based on liquidation of net assets remaining in the partnership, including proceeds from sale of its interest in Chalkley field and other assets, and completes liquidation of the partnership (OGJ, July 20, p. 38).

HADSON ENERGY RESOURCES CORP., Oklahoma City, received notice from Wiser Oil Co., Sisterville, W. Va., that Wiser is ending talks with Hadson about a proposed merger of the two (OGJ, July 13, p. 30). Hadson said it and Wiser were unable to reach a definitive agreement.

ARCO OIL & GAS CO. hired John Brown E&C for various engineering services for U.S. oil and gas production and transportation projects. Involved are pipeline compressor additions at Wilburton, Okla., and Denver City, Tex., and a waterflood near Jal, N.M. The Wilburton system will receive four 1,000 hp reciprocating compressors. For the Denver City system, two five stage CO2 compressors will be converted to four stage operation, and another unit will be installed.

TRANSPORTATION

IRAQ will begin rebuilding the Khour Al-Omaiha port on the northern tip of the Persian Gulf now that the oil terminal at Mina Al-Bakr has been restored (OGJ, Sept. 7, p. 22). OPEC News Agency reported Iraqi Southern Oil Co. will undertake repairs.

OLEFINS TERMINAL CORP. (OTC), a joint venture of Diamond Shamrock and JLM Industries Inc., Stamford, Conn., started up its propylene export facility at Baytank (Houston) Inc.'s terminal on the Bayport Ship Channel in South Texas. The export facility, operated by Baytank under long term contract, can load partly and fully refrigerated cargoes of polymer grade propylene at as much as 500 metric tons/hr. Propylene will be supplied by several Gulf Coast producers via a pipeline to be constructed by Diamond Shamrock (OGJ, Mar. 30, p. 58). Target markets include Europe, the Far East, and Mexico.

AIR PRODUCTS & CHEMICALS INC. is nearly doubling the length of its hydrogen pipelines in Texas and Louisiana (OGJ, Aug. 24, p. 26). Its 32 mile pipeline along the Baton Rouge-New Orleans Mississippi River corridor will be extended 28 miles to supply chemical and refinery customers in LaPlace, La. The extension is to begin deliveries in January 1993.

U.S. FEDERAL ENERGY REGULATORY COMMISSION approved a plan to fund Gas Research Institute's research program in 1993, calling for the existing 1.51 cents/Mcf gas transmission surcharge to be collected on all nondiscounted commodity charges and nondiscounted one part rates for transportation services. Also, pipelines would charge 8 cents/decatherm/month on all firm sales or transportation entitlements.

GAS PROCESSING

ELF ATOCHEM SA let contract to Xytel-Bechtel Inc. (XBI), Houston, for design engineering, procurement, and fabrication of a 26 ton/day hydrogen sulfide plant at Rotterdam, Netherlands. XBI, a joint venture of Bechtel Corp. and Xytel Corp., will fabricate modules based on Bechtel technology at its Houston plant. Project completion is expected by Aug. 1, 1993.

EXPORTS-IMPORTS

ENRON GAS MARKETING CANADA INC., Calgary, will buy 113 bcf of gas from Unigas Corp., Calgary, under a 10 year contract that indexes prices to market conditions.