INTERNATIONAL BRIEFS

COGENERATION

ELECTRICITY GENERATING AUTHORITY OF THAILAND (EGAT) let contract to units of Mitsubishi Corp. for a 355,000 kw combined cycle cogeneration plant in Northeast Thailand that will use natural gas from Nam Phong field (OGJ, Apr. 29, p. 27). The contract, worth about 20 billion yen, includes supplying two 121,000 kw gas turbines and a 113,000 kw steam turbine. Completion is scheduled by yearend 1995.

MARKETING

DEN NORKSE STATS OLJESELSKAP AS bought BP Oil's marketing operations in Ireland, including 260 retail outlets representing 11-12% of the market, and three distribution terminals. The move to the Statoil brand will occur in first quarter 1992. BP said the sale is part of its strategy to focus on rapid growth areas such as Spain and eastern Europe. It marks Statoil's first move outside Scandinavia.

COMPANIES

TRANSCANADA PIPELINES LTD., Calgary, pulled out of talks with Pacific Gas & Electric Co. to purchase its Alberta & Southern Gas Co. Ltd. unit (OGJ, Nov. 4, p. 46). TransCanada is continuing discussions on its proposed purchase of PG&E affiliate Pacific Gas Transmission Co. and expects to close that deal in 1992.

NOVA CORP., Calgary, plans to reorganize senior management of its chemicals and natural gas transmission units, a move consistent with its plan to separate the companies. However, Nova won't implement the split now because of depressed conditions in the chemicals industry. Nova plans executive staff cuts under the reorganization and expects more streamlining steps the next several months.

TAIWAN'S Commission of National Corporations ordered Chinese Petroleum Corp. (CPC) to build a deepwater harbor near Taoyuan in northern Taiwan to serve as a receiving terminal for crude supplies for CPC's northern refinery. The harbor will also be used to export products from the proposed Kuanyin Industrial Zone. CPC said it is looking for partners to assist in the project.

AMOCO CANADA LTD., Calgary, plans to refinance $2 billion (Canadian) of its $2.6 billion external debt, and parent Amoco Corp. approved a two stage program in 1988. Amoco plans to capitalize on lower interest rates and provide more spending flexibility and additional cash flow, saying low interest rates will yield savings of more than $100 million in 1992-93. The company has carried a heavy debt load since a $5.5 billion takeover of Dome Petroleum Ltd.

FINA EXPLORATION LTD. will acquire BP Exploration's shares in Blocks 22/4a and 16/13a in the North Sea containing Maggie/Drake gas complex and a separate discovery on Block 16/13a. The move increases Fina's stake in 22/4a to 26.72% from 21.72% and in 16/13a to 28.5% from 22.5%. In exchange BP will take Fina's 17.15% stake in Block 47/5a, boosting its holding to 85.28%. That block contains an extension of the BP operated Hyde gas field.

PETROCHEMICALS

SAUDI ARABIA'S Eastern Petrochemical Co. (Sharq) let contracts to Mitsubishi Heavy Industries Ltd. and Saudi Shinhwa Co. Ltd. to double its polyethylene capacity to 280,000 metric tons/year by early 1994. Mitsubishi will provide engineering, procurement, and management services for the $150 million project, and Saudi Shinhwa will provide field engineering and construction services. Expansion includes an added production line and pelletizing system.

FIVE EUROPEAN BANKS agreed to provide $1.82 billion in credits to Iran for petrochemical projects. Ten agreements were signed, six of which total about $1.26 billion and will fund completion of the Bandar Imam petrochemical complex in southern Iran. The credits will be repaid through advanced sale of 4 million tons of liquefied natural gas and 3.15 million tons of chemical products 6 months after completion of the projects.

EXPLORATION

SHELL CANADA LTD. acquired exploration rights for three parcels covering about 111,000 hectares of Grown land in the Inuvialuit area of Mackenzie Delta. Most of the land is near Shell's Unipkat N-12 oil and gas discovery 115 km northwest of Inuvik, Northwest Territory (OGJ, Apr. 23, 1990, Newsletter). Shell's bid of $53.3 million (Canadian) represents the value of potential exploration work in the initial 4 year term. A step-out to the discovery is planned this winter.

A GROUP LED BY Mt. Isa Mines Ltd. received an exploration license covering almost 1.1 million acres in the Timor Sea off Northwest Australia. Area W91-12 is about 125 miles west of Darwin, Australia, in water depths of 150-300 ft. The group will conduct 2,500 line miles of seismic surveys and drill one wildcat in the first 3 years of the license. Partners with Mt. Isa 24% are LL&E Australia (Offshore) Pty. Ltd. 27%, Command Petroleum Holdings NL 26%, and Nippon Mining Co. Ltd. 23%.

INDONESIA'S Pertamina tested 1 RDL wildcat near Rengasdengklok in West Java at 1,024 b/d of oil and 1.5 MMcfd of gas through a 1/2 in. choke from Miocene upper Cibulakan. Total depth is 1,545 m. Further tests are planned.

GOVERNMENT

KUWAIT AND HUNGARY signed a government to government cooperation protocol under which Hungarian firms will become involved in rebuilding Kuwait's oil industry while state owned Kuwait Petroleum Corp. will participate in development of Hungary's downstream sector. KPC has an agreement to open a chain of 08 service stations in Hungary.

EXPORTS-IMPORTS

WESTERN GAS INTERSTATE CO., Austin, began exports of 30 MMcfd of natural gas to serve Mexico's Juarez area. The exports were recently certified by the Federal Energy Regulatory Commission. Petroleos Mexicanos hopes to promote the use of natural gas in the area and to eventually convert an oil fired power plant in Juarez to natural gas. El Paso Natural Gas Co. recently began gas exports to the area as well (OGJ, Dec. 9, p. 35).

SAUDI ARABIAN MARKETING & REFINING CO. (Samarec) finalized four 5 year supply contracts based on its new price formula for liquid petroleum gas. Yukong Gas Ltd. signed for a total of 6.275 million metric tons, Yosu Energy Corp. for 5.9 million metric tons, Iwatani International Corp. for 2.75 million metric tons, and Mobil Trading & Supply Ltd. signed for 2 million metric tons. The contracts are the first to be finalized under Samarec's new pricing formula.

TAIWAN'S CPC will resume long term crude purchases from Kuwait in 1992 with plans to sign a contract for 30,000 b/d. And under its policy to diversify sources of supply, CPC purchased 700,000 bbl of Egyptian crude from Italy.

CANADA'S National Energy Board received applications to export about 230 MMcfd of gas. Three are from Makoski Selkirk Inc. on behalf of Selkirk Cogeneration Partners 11 Inc., with the remainder from Canadian-Montana Pipeline Co., Canadian Hydrocarbons Ltd. Inc., CanWest Gas Supply Inc., Poco Petroleums Ltd., and Summit Resources Ltd. Makoski Selkirk wants to export about 55 MMcfd for 15 years to supply a cogeneration plant in Selkirk, N.Y. (OGJ, Oct. 7, p. 44).

JAPAN plans a 10 year phaseout of crude oil customs duties beginning in fiscal 1992. Duties will be reduced to 315 yen/kl from the current 350 yen/kl during the next 5 years and to 220 yen/kl in the following 5 years. In 2002 all crude oil customs duties will be eliminated. Part of the duties, which totaled about 70 billion yen in fiscal 1990, subsidize the country's declining coal industry. The plan will be submitted to the Customs Tariff Council this week.

REFINING

PETROLEOS DE VENEZUELA unit Maraven SA indefinitely postponed the installation of a 15,000 b/d hydroprocessing unit for its Cardon refinery in western Venezuela (OGJ, Aug. 26, p. 36), citing budget cuts. The plant was scheduled for start-up in 1996.

DRILLING-PRODUCTION

MOBIL NORTH SEA LTD. produced 143,332 bbl of oil from Beryl, Ness, and Linnhe fields on Block 9/13 in the North Sea Nov. 16, a daily record. Mobil Exploration Norway Inc. hit its biggest average monthly production in September with 125,500 b/d of oil from fields in the Norwegian North Sea. On Nov. 6, Mobil Producing Nigeria produced 334,400 bbl of oil, a daily record, after commissioning a new production platform in Edop oil field.

PLUSPETROL SA X1002 Loma Jarillosa Este appraisal well on Loma del Mojon block in Argentina's Nuequen Province flowed 313 b/d of 37 gravity oil from Jurassic Sierras Blancas. Total depth is 3,672 m. Production is from the same zone that tested oil in the discovery well drilled early this year (OGJ, Feb. 25, p. 32).

KERR-MCGEE CORP. plans additional drilling to assess its Seal 15-9-83-14W5 discovery in North Central Alberta, which flowed at a stabilized rate of 220 b/d of 37 gravity oil through a 11/64 in. choke with 360 psi flowing tubing pressure. An appraisal well completed 1 mile north tested at a similar rate. Kerr-McGee holds 100% interest in the two wells and surrounding acreage.

ECUADOR'S Ministry of Energy let contract to Institut Francais du Petrole for a detailed study of oil reserves in Ecuador, including reserves discovered by companies under risk service contracts, reserves in the Petroecuador-Texaco block, and those in Petroecuador's exclusive areas. It will also include the recent discoveries on the Santa Elena peninsula (OGJ, May 27, p. 107).

ECUADOR'S Tripetrol submitted its plan to develop discoveries on the Santa Elena peninsula on acreage acquired from Belco Petroleum Corp. (OGJ, May 27, p. 107). The plan includes drilling 22 wells, some possibly horizontal, to develop the Pacoa, Mata Chivato, Palo Santo, and Guayacan strikes. Total investment in the four fields is to be about $66 million. Petroecuador is reviewing the plan.

BRITISH BORNEO PETROLEUM SYNDICATE PLC, London, completed purchase of Norsk Hydro AS U.K. North Sea oil and gas assets for $108.7 million (OGJ, Nov. 25, p. 34).

ALCORN INTERNATIONAL INC., Houston, spudded the first of two confirmation wells on its West Linapacan oil discovery off Palawan Island, Philippines. The well is being drilled in 1,142 ft of water and will reach total depth at about 6,000 ft. Primary zone of interest is to be reached in January 1992. Alcorn plans a $48 million first phase development of the discovery (OGJ, Nov. 4, p. 47).

DRESSER-RAND let contract to Mustang Engineering Inc., Houston, to provide project management assistance, procurement, construction management, project scheduling and cost controls, and all inspection and site construction supervision of the equipment modules for a gas compression plant on Lake Maracaibo, Venezuela, for operator Lagoven SA. The modules are to be fabricated in the U.S. and shipped to Venezuela for installation in summer 1992.

U.S. EXPORT-IMPORT BANK is helping Otis Engineering Corp., Dallas, in a $19.9 million sale of workover services and equipment to Algeria's Sonatrach. Otis will work on Hassi Messaoud field wells, increasing production potential by estimated 190 b/d/well. ExImBank will guarantee a German bank's $17.5 million loan for the project.

BRITISH GAS EXPLORATION & PRODUCTION LTD. let a contract valued at 16 million ($28.64 million) to John Brown Engineers & Constructors Ltd. for detailed engineering and procurement for the onshore terminal to serve North Morecambe gas field development in the Irish Sea off Northwest England. The plant is due on stream in winter 1994.

CHINA'S Liaohe oil field in Northeast China's Liaoning Province increased output of heavy and high pour point oil to 172,000 b/d, using 12 techniques developed by local industry. The techniques are effective on oil with a pour point of as much as 67 C. Liaohe is the country's third largest field with 1990 production of about 270,000 b/d (OGJ, July 29, p. 27).

PIPELINES

PETROECUADOR completed the 167.5 mile, 6 in. Libertad-Manta products pipeline constructed in Ecuador by Argentina's Techint with financial support from Argentina's government. The line will transport gasoline and diesel from refineries at Santa Elena to Manta for distribution in Manabi province.

TRANSCANADA filed an updated application with NEB to cut its firm service eastern zone toll rate to 84.875/gigajoule (Canadian) from 87.126/gigajoule. TCPL operates the mainline system that moves western Canadian gas to markets in Central Canada and U.S. Midwest and Northeast markets. There would be proportional cuts in other zones and for load factors such as interruptible service.

FUTURES

LONDON'S International Petroleum Exchange will introduce a premium unleaded gasoline future contract Jan. 27. First delivery month will be April. IPE said delivery procedures will closely resemble the present gas oil contract.