PIPELINES
IRAN and Turkmenistan agreed on the route of a pipeline to move Turkmen gas to Europe and Turkey via Iran. The line will cross Iran south of the Elburz Mountains via Shahrud, Semnan, Tehran, and Tabriz. It will move as much as 420 bcf/year at first, increasing at some point to an expected 1.085 tcf/year. Start-up date for the estimated $8 billion project is not disclosed.
TEXAS EASTERN TRANSMISSION CORP. resumed gas deliveries Apr. 13 through Edison, N.J. Part of a 45 mile section of the company's 36 in. gas line that links Lambertville and Linden, N.J., through Edison was out of service for repair and testing following a Mar. 23 rupture that led to an explosion and fire (OGJ, Apr. 4, p. 34).
MARATHON OIL CO. let contract to Global Pipelines PLUS Inc., a unit of Global Industries Ltd., Lafayette, La., to install pipelines included in Marathon's Lobster development project in 775 ft of water on Ewing Bank Block 873 in the Gulf of Mexico. Global's Cherokee, Chickasaw, Tonkawa, and Sea Constructor pipelay barges this month are to begin installing 59 1/2 miles of 16 in. line, 12.67 miles of 8 in., and a 10 in. on 20 in. hot tap assembly.
MAERSK OLIE OG GAS AS hired Switzerland's Allseas Marine Contractors SA to lay two 24 in. pipelines for the Tyra oil field development project in the Danish North Sea. Trenching and installation are to start in August in water 40 m deep 200 km west of Esbjerg, Denmark.
LNG
TOKYO GAS ENGINEERING CO. let contract to NKK Corp. to build a 35,000 cu m underground liquefied natural gas storage tank at Saibu Gas Co. Ltd.'s Fukuoka, Japan, terminal. It's expected to be placed in operation in April 1995. The tank will be next to one NKK built and completed in October 1993.
SPILLS
CLEANUP of the Jan. 7 oil spill off San Juan, P.R., (OGJ, Jan. 17, p. 28) is expected to cost the U.S. government $65 million, or two thirds of the combined oil spill fund set aside by Congress for such disasters, the U.S. Coast Guard reported. The Coast Guard said it may ask Congress to increase the $100 million cleanup fund, which is supplied by an oil transport tax.
SOME OF THE OIL SLICK threatening Fujairah, U.A.E., beaches is being held back from shore by favorable winds and calm seas. Oil skim equipment is in use to remove sand fouled by the estimated 120,000 bbl oil spill, which occurred Mar. 30 when two supertankers collided in the Gulf of Oman 9 miles off Fujairah (OGJ, Apr. 11, p. 107).
ENVIRONMENT
SENYAK CONSULTING, Santa Rosa, Calif., said higher aromatic content in southern California's diesel fuel resulted in insignificant fuel system leaks in that area, compared with many such leaks caused by reduced aromatic diesel fuel common in northern California. OGJ incorrectly reported that Senyak said higher aromatic content caused fuel system leaks in southern California (OGJ, Apr. 4, Newsletter).
DRILLING-PRODUCTION
CHERNOGORSKOYE JOINT VENTURE, Nizhnevartovsk, Russia, a combine of Anderman/Smith Overseas Inc., Denver, and Russian production association Chernogorneft, Nizhnevartovsk, late in second quarter expects to begin producing 5,000 b/d of pipeline quality crude oil from Chernogorskoye field in Tyumen oblast with an electric treating unit fabricated by Sivalls Inc., Odessa, Tex.
BRIDGE OIL (U.S.A.) INC., a unit of Australia's Bridge Oil Ltd., paid $48 million for most of Santa Fe Energy Resources Inc.'s assets in the Anadarko basin of Oklahoma and Texas as well as its interests in the Rocky Mountains. The purchase excludes Santa Fe's holdings in Canyon Creek gas field in Wyoming.
PHILLIPS PETROLEUM CO.'S 3 Sunfish appraisal well in Alaska's North Cook Inlet flowed 412 b/d of oil and 155 b/d of water on drillstem test of Sunfish sand at 13,594-706 ft. A second test recovered a small volume of oil from a sand at 12,478538 ft, Phillips 60% and ARCO Alaska Inc. 40% are partners in the Sunfish Prospect.
NABORS INDUSTRIES INC., Houston, paid $9 million cash and 650,000 two year warrants to Mitchell Energy & Development Corp., The Woodlands, Tex., for 16 drilling rigs. Nine of them are diesel electric, and the rest are mechanical units including two wheel-mounted versions, giving Nabors 170 U.S. land rigs to market.
VENEZUELA'S Petroleos de Venezuela SA unit Lagoven SA chose Pride Petroleum Services Inc. subsidiary Perforaciones Western CA to build and operate two cantilever drilling/workover rigs in Lake Maracaibo. Pride expects to build the rigs, worth a combined $40 million, and deliver them before yearend.
AMOCO PRODUCTION CO. celebrated the 10th anniversary Of CO2 production from the Bravo Dome Carbon Dioxide Unit in Union and Harding counties, N.M. Production began Apr. 2, 1984. Present production of 370 MMcfd is used in 14 enhanced oil recovery projects in West Texas and Southeast New Mexico. Total volume sold reached 1 tcf last July.
ELF GABON started production from Gabon's onshore Avocette oil field, producing a combined 15,000 b/d from two wells, one of which is horizontal. Two more horizontal wells are planned, designed to help increase combined field flow to 27,000 b/d in 1995. The field lies 18 km northwest of Coucal field and 30 km north of Rabi Kounga field.
CONOCO NORWAY INC., Stavanger, let contract to Simrad Subsea AS, a unit of Simrad AS, Horten, Norway, for instrumentation on the subsea positioning system of Heidrun tension leg platform (TLP) offloading stations. Norwegian Contractors AS, Stabekk, Norway, let contract to Simrad to provide hydroacoustic instrumentation for positioning the TLP in 1,150 ft of water on Block 6507/7 in the Norwegian Sea.
AMERADA HESS LTD. let a 4 year charter contract to Bluewater Terminals SA, Villars-sur-Glane, Switzerland, for a floating production system to develop U.K. North Sea Fife field. Start of production is expected in third quarter 1995.
ALBERTA ENERGY LTD., Calgary, first quarter drilling program added 100 bcf equivalent to its oil and gas reserves. The company drilled 59 exploration and development wells in Alberta and British Columbia. Its proved and probable reserves at yearend 1993 were 1.803 tcf of gas and 27.7 million bbl of oil.
LASMO NORTH SEA PIC received U.K. Department of Trade & Industry approval to develop Birch field in North Sea Block 16/12a. Production is to begin in October 1995, with a peak rate of 23,000 b/d of oil and 60 MMcfd of gas. A 9140 million ($210 million) development will involve tie-back of three wells via subsea manifold to the Brae A platform on Block 16/7.
COMPANIES
AMERICAN INTERNATIONAL PETROLEUM CORP., New York, began a program designed to reduce operating expenses 25% from the 1993 level. Cuts include a 50% reduction in directors' fees. 20% salary cut for its chairman/CEO, and 15% salary cut for all other corporate officers, including the president and management members.
MESA INC., Dallas, agreed to sell 250 MMcf/year of helium under long term contract to BOC Group Inc. unit Airco Gases, Murray Hill, N.J. Helium from Mesa's Southwest Kansas Hugoton gas field leases at first will be moved via pipeline to an Airco plant in Otis, Kan., to be processed and sold.
ARAKIS ENERGY CORP., Vancouver, B.C., acquired Conquest Exploration Oman Inc. from American Exploration Co., Houston, in return for assumption of Conquest's obligations in Oman. Arakis becomes operator of 346,000 acre Block 15 in Oman, where the 1 Jebel Aswad wildcat was drilled to 11,776 ft and suspended for evaluation.
LASMO PLC, London, plans a 9219 million ($325 million) rights issue to U.S. shareholders Apr. 14-May 6. The money will help fund field development, exploration, and appraisal. Development spending will include the Liverpool Bay project in the Irish Sea, Andrew and Birch fields in the North Sea, and Kadanwari field in Pakistan. Exploration programs in Algeria, offshore U.K., and Indonesia also will be funded.
PETROCHEMICALS
CANADIAN LIQUID AIR LTD., Edmonton, will spend at least $7 million (Canadian) to build a hydrogen purification plant tied to a $500 million ethylene project at Fort Saskatchewan, Alta. The plant is scheduled to begin operation this fall. Size of the project will be increased if demand justifies.
CHINA NATIONAL CHEMICAL CONSTRUCTION CORP. let contract to Technip for design and construction of a $20 million, 60,000 metric ton/year polyvinyl chloride plant in Waxian, Sichuan province, China. The plant, for Chuandong Chemical Industry Corp., will use Elf Atochem's bulk process and be on stream by June 1997.
REFINING
CHEVRON CORP. and Chemical Research & Licensing Co., Houston, will test CR&L's solid catalyst alkylation system at Chevron's 185,000 b/cd Port Arthur, Tex., refinery. The process replaces conventional liquid acid catalysts with a less hazardous solid catalyst. The pilot plant, built by CR&L, will be jointly operated by both companies.
HESS OIL VIRGIN ISLANDS CORP. started up a UOP Merox LPG extraction unit at its 545,000 b/cd St. Croix V.I., refinery. This marks the 1,500th Merox unit placed in operation worldwide since UOP introduced the process in 1958.
A TEXAS COURT entered a $31.5 million judgment in Marathon Oil Co.'s favor against CBI Na-Con Inc., a unit of CBI Industries Inc., Oak Brook, Ill. The Harris County court decision stems from a crane accident Oct. 30. 1987, at Marathon's 70,000 b/cd Texas City, Tex., refinery.
EXPLORATION
FINA EXPLORATION LIBYA BV'S second wildcat on Block NC 171-5 in the eastern part of Libya's Sirte basin flowed 2,200 b/d of 37 gravity oil through a 54/64 in. choke. Partners in the 9,657 ft well are Fina 50%, Yukong Ltd. 20%, PanCanadian Petroleum (Libya) Ltd. 15%, and Chieftain International (Bermuda) Ltd. and Scirocco Energy Ltd. 7.5% each.
TRITON ENERGY CORP., Dallas, on Apr. 21 will participate in a signing ceremony in Kuala Lumpur with the Malaysia/Thailand Joint Authority and national oil companies of Malaysia and Thailand to open the Malaysia/Thailand joint development area (JDA) to exploration. Triton and Malaysia state company Petronas Carigali each hold a 50% working interest in 700,000 acre Block A-1 8 gas prospect, one of three blocks in the JDA.
DG SEIS INTERNATIONAL LTD., a unit of DG Seis Inc., Houston, and affiliates by this fall intend to begin acquiring and processing seismic data in the Caspian Sea, pending completion of financing to upgrade and operate a seismic vessel.
MAGELLAN PETROLEUM AUSTRALIA LTD., a unit of Magellan Petroleum Corp., Hartford, Conn., estimates original sales gas reserves in Palm Valley field of Australia's Northern Territory at 480 bcf and original gas in place at more than 1 tcf. A 1993 study by an independent consultant estimated original proved recoverable reserves at 683 bcf and probable and possible recoverable reserves at 508 bcf and 467 bcf, respectively, essentially unchanged from a 1992 estimate.
GOVERNMENT
U.S. PRESIDENT Clinton issued an executive order directing federal agencies to reduce energy use 30% from 1985 levels by 2005, saving $1 billion/year. Former President Bush previously ordered a 20% cut, but little was done to implement it. Clinton ordered agencies to conduct energy and water efficiency audits for their buildings, then install technology needed to ensure savings.
ALBERTA'S government introduced legislation requiring industry to cover cleanup costs for wells abandoned by owners who can't be traced. Oil companies have agreed to set up a fund to cover cleanup costs of so-called orphaned wells. The government estimates there are 28 such wells at present.
TANKERS
U.S. COAST GUARD proposes a rule that would require U.S. flag oil tankers larger than 150 gross dwt and other U.S. flag ships larger than 400 gross dwt to carry approved shipboard oil pollution emergency plans. Non-U.S. ships of similar sizes also would be required to have evidence of compliance with Regulation 26 of the International Convention for the Prevention of Pollution from Ships.
ALTERNATE ENERGY
NUCLEAR ENERGY INSTITUTE was formed to consolidate work of nuclear industry trade organizations based in Washington, D.C. It will handle programs in government affairs, communications, and regulatory and technical issues previously managed by the American Nuclear Energy Council, U.S. Council for Energy Awareness, Nuclear Management and Resources Council, and nuclear activities of Edison Electric Institute.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.