INTERNATIONAL BRIEFS

Nov. 12, 1990
CANADA'S NATIONAL ENERGY BOARD approved continuing rolled-in tolling for TransCanada PipeLines' proposed $2.6 billion expansion of its Alberta-Quebec system, a major milestone in the project's permitting process. The project calls for 1,600 km of loops and 300,000 hp of added compression to boost throughput capacity by 832 MMcfd. TransCanada expects the work to be complete by Nov. 1, 1992.

PIPELINES

CANADA'S NATIONAL ENERGY BOARD approved continuing rolled-in tolling for TransCanada PipeLines' proposed $2.6 billion expansion of its Alberta-Quebec system, a major milestone in the project's permitting process. The project calls for 1,600 km of loops and 300,000 hp of added compression to boost throughput capacity by 832 MMcfd. TransCanada expects the work to be complete by Nov. 1, 1992.

HIDEOELECTRICA DEL CANTABRICO SA of Spain completed construction of a natural gas distribution system serving about 30,000 residential and industrial customers, mainly in the towns of Oviedo, Gijon, and Aviles in the Asturias region. Italy's Italgas SpA provided technical assistance.

DRILLING-PRODUCTION

LASMO NORTH SEA PLC received U.K. government approval for its first field development as operator in the U.K. North Sea. Staffa field in Block 3/8b, 6.2 miles east of Ninian oil field, will produce about 8,000 b/d from two subsea wells tied back to Ninian's southern platform. Start-up is scheduled for yearend 1991. Lasmo holds a 60% interest in the field in partnership with Ranger Oil (U.K.) Ltd. 40%.

NORSK HYDRO AS let a $75 million contract to AS Smedvig Prodrill for development drilling on Oseberg Platform C and continuation of development drilling on the field's Platform B in the Norwegian North Sea.

PARKER DRILLING CO., Tulsa, won four helirig contracts for exploratory drilling in Myanmar, the first awarded to foreign contractors in that country in several decades. The contracts, one of which calls for construction of a new rig, will be operating by third or fourth quarter fiscal 1991 . Operators are Amoco Myanmar Petroleum Co., hiring the new rig in a 2 year program, Broken Hill Petroleum Pty. Ltd., Yukong Ltd., and Idemitsu Myanmar Oil Exploration Co.

NEDERIANDSE AARDALIE MIJ BV, a Shell-Esso company, boosted its estimate of reserves in giant Groningen onshore gas field in Netherlands by 9.88 tcf after tests showed Groningen could produce at reservoir pressures of less than 290 psi vs. previous drawdown at 725 psi. The new data raise the original proved reserves estimate to 94.63 tcf. Remaining reserves as of Jan. 1, 1990, were 51.9 tcf.

ENTERPRISE OIL PLC, London, chartered Atlantic Drilling Co.'s Benreoch semisubmersible rig for a drilling campaign in the U.K. North Sea. The rig is undergoing a $3.9 million upgrade in Rotterdam, including installation of a top drive unit and other modifications to meet Enterprise requirements for high pressure wells. The first well is to spud at the end of this month on Block 29/2b.

LASMO CANADA INC., Calgary, agreed in principle to buy a 16.2% interest in the Nipisi Gilwood Unit No. 1 in Alberta from Esso Resources Canada Ltd. for $55 million. The acquisition will boost Lasmo Canada crude reserves by 13.5 million bbl. Closing of the deal, effective last July 1 , is expected by yearend.

CONOCO CANADA LTD. agreed to buy all Petro-Canada Inc. interests in Peco, Edson, and Mineherd fields in Alberta for an undisclosed sum. The acquisition boosts Canadian production of Conoco Canada and its limited partner Du Pont Canada Inc. to a combined 2,700 b/d of liquids and 65 MMcfd of gas.

COMPANIES

ENCOR INC., Calgary, signed a letter of intent to sell about 140 bcf of gas during 20 years for power generation in northern Ontario. Deliveries are to begin in 1993 at 20 MMcfd. Purchaser was not disclosed.

EXPLORATION

A FOUR COMPANY GROUP acquired Blocks 22, 25, and 26 covering 14,200 sq km in Pakistan's first exploration licensing round. OMV (Pakistan) Exploration GmbH will operate Blocks 22 and 26 and Pakistan Petroleum Ltd. (PPL) Block 25. The group will conduct 3,500 line km of seismic surveys and drill three wells on the blocks in the Indus basin, west and southwest of Sui gas field. OMV has a 35% interest in the acreage, PPL and Hardy Oil & Gas (U.K.) Ltd. 30% each, and state owned Oil & Gas Development Corp. 5%.

GUPCO 13 Abu Zenima flowed 9,500 b/d of oil. The discovery well is in the eastern portion of the Gulf of Suez near Abu Rhudeis and Ras Budran fields. Gupco is the joint operating company owned by Egypt General Petroleum Corp. and Amoco Corp.

ORANJE-NASSAU ENERGIE BV, Amsterdam, acquired interests of 15-25% in five exploration permits covering a total area of 1,571 sq km in France's Paris basin. The permits and their operators are Brienne le Chateau (Conoco Inc.), Melun (Triton Energy Corp.), and Chateaubleau, Faremoutiers, and donchery sur Vesle (all Total CFP).

REFINING

THE U.S.S.R. needs 10 deep conversion units with a combined capacity of 240,000 b/d at a cost of 1.2 billion rubles, not 10 refineries as reported earlier in quoting Soviet Refining and Petrochemicals Minister Nikolai Lemayev after his resignation (OGJ, Oct. 29, Newsletter). Soviet refineries are running at about 60% utilization, and refinery runs would have to increase by 500,000 b/d to meet expected Soviet light products demand, Lemayev said.

VENEZUELA'S MARAVEN SA is installing a computerized gasoline blending plant at its Cardon refinery at a cost of $16.5 million.

PETROCHEMICALS

JILIN CHEMICAL CO. installed a 12,000 b/d catalytic cracker to upgrade heavy crude feedstock at its petrochemical complex in Northeast China's Jilin Province. Costing 120 million yuan, the unit was designed by China Petrochemical Corp.'s Luoyang Design Institute.

ATOCHEM ESPANA SA, a Spanish unit of France's Atochem SA, increased polystyrene capacity at its El Prat de Llobregat, Barcelona, plant to 75,000 tons/year from 50,000 tons/year. The move is part of Atochem's plans to expand its operations in Spain, mainly in the plastics sector.

ALTERNATE FUELS

NIPSCO DEVELOPMENT CO. INC., a unit of Nipsco Industries Inc., Hammond, Ind., signed a letter of intent to take an equity interest in ELM Energy & Recycling Ltd., a venture to develop, own, and operate a $70 million, 20,000 kw waste tire fueled electric power plant in Wolverhampton, West Midlands, U.K. The plant, to burn about 12 million scrap tires/year, is to be complete in 1992.

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