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PROCESSING — Quick Takes
Newfield projects Uinta crude oil sales to Tesoro
Newfield Exploration Co. has signed an agreement to supply 18,000 b/d of crude oil from its Uinta basin fields to Tesoro Corp.'s 60,000 b/d Salt Lake City, Utah, refinery.
Newfield said the agreement spans a 7-year period starting in 2013 and secures additional supply capacity for the company's planned oil growth in the basin. The oil price differential associated with this agreement is not materially different than Newfield's current supply contracts in the basin.
Newfield has been active in the basin since 2004. Multiple oil-productive geologic targets exist across the acreage, and an active drilling campaign is under way to develop the more than 6,000 potential locations.
Newfield plans to test multiple horizontal intervals in 2012 in two new central basin oil developments, the Uteland Butte and Wasatch formations, on which it disclosed initial tests in mid-2011 (OGJ Online, July 20, 2011). The company has been increasing its rig count and expects to run at least eight rigs in the basin next year, up from an historic five-rig program.
Newfield sells its crude oil from the Uinta basin to multiple Salt Lake City-area refiners and continues to work with each to secure additional refining capacity to meet future growth plans from the region.
More Oklahoma cryo capacity under construction
Superior Pipeline Co. LLC, Tulsa, is installing a 30-MMcfd cryogenic plant in Kay County, Okla. Superior is a wholly owned subsidiary of Unit Corp., Tulsa.
Superior has signed a long-term agreement with Range Resources Corp. as the initial producer for the plant. Start-up is to occur during second-quarter 2012.
Construction of the plant is "consistent with Superior's strategic plan" to build greenfield gathering and processing in the Mississippian trend, said Superior Pipeline Pres. Bob Parks. "We are constructing this plant with the flexibility to accommodate future expansions as we contract to receive additional gas volumes in northern Oklahoma," Parks said.
He said, "This plant, along with our existing assets accessing the Mississippian trend, will bring our overall processing capacity" in the region to more than 100 MMcfd.
Feasibility study for Iraqi refinery
South Refineries Co., a part of the Republic of Iraq's Ministry of Oil, has awarded Shaw Group Inc. a contract to provide a feasibility study for the rehabilitation of its 140,000-b/d refinery in Basra. Shaw's announcement did not disclose a contract value.
The study will assess the current condition of the refinery and estimate the engineering, equipment supply, and construction services required to improve its operation.
The US Trade and Development Agency agreed to provide a grant to the South Refineries Co. to finance the work. The Shaw announcement said this is the first grant the agency has provided directly to an Iraqi grantee.
This will be Shaw's fourth refining project in Iraq, said James Glass, president of Shaw's Energy & Chemicals Group.
In Iraq, Shaw is conducting feasibility studies and frontend engineering and design for two grassroots 150,000-b/d refineries near the cities of Maissan and Kirkuk for the Ministry of Oil. The FEED work includes all process units, off site facilities and utilities for both refineries.
Through a fluidized catalytic cracking alliance, Shaw, with its partner, Axens, are providing a process-design package for a 30,000 b/d residual fluidized catalytic cracking (RFCC) unit at Midland Refineries Co.'s refinery in Daura.
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