INDUSTRY BRIEFS

PETROCHEMICALS

WESTLAKE STYRENE CORP., a joint venture of Taita Chemical Co., BTR Nyrex, Sumitomo Corp., and Westlake Group, completed construction of a $100 million ethylbenzene/styrene plant at Lake Charles, La., with styrene capacity of 160,000 metric tons/year. It uses the Mobil/Badger vapor phase alkylation process to produce ethylbenzene, which is dehydrogenated using the Fina/Badger styrene process. Badger Go. Inc. handled engineering, procurement, and construction.

GAS PROCESSING

AMERICAN OIL & GAS CORP., Houston, agreed to acquire assets and related liabilities of Maple Gas Corp., Dallas, for about $80 million. The deal includes 10 gas processing plants and about 1,300 miles of related pipeline in Panhandle field of Texas and Oklahoma and the Permian basin of West Texas and southeastern New Mexico. The facilities are in AOG's primary service area and most connect to its Westar pipeline system.

DRILLING-PRODUCTION

LASMO NORTH SEA PLC began production from Staffa oil field on Block 3/8b in the U.K. North Sea about 10 km southeast of Ninian field. Staffa can produce as much as 8,000 b/d of oil from two subsea wells. Oil and associated gas will move to Ninian Southern platform (OGJ, Jan. 27, p. 85) and then via pipeline to Sullom Voe terminal in the Shetland Islands.

CONOCO (U.K.) LTD. 29/2a-7 appraisal well on U.K. North Sea Block 29/2a about 150 miles east of Aberdeen flowed at a cumulative stabilized rate of 3,200 b/d of 38.5 gravity oil and 1.75 MMcfd of gas through a 11/64 in. choke on two drill stem tests. Drilled to 8,591 ft, the well was suspended as possible future producer. The 29/2a-6 discovery well was completed last year (OGJ, Oct. 28, 1991, p. 22).

DEVON ENERGY CORP., Oklahoma City, is negotiating to purchase most of the U.S. oil and gas leases of Hondo Oil & Gas Co., Roswell, N.M. Excluded are Hondo's international exploration operations, California refinery, interests in Wilmington, Calif., oil field, and real estate holdings. Hondo agreed to an exclusive standstill period before proceeding with a definitive agreement.

HALLIBURTON SERVICES in 1991 claimed world records for most sand pumped into an offshore well and into a horizontal well while fracturing 14 zones in a well for Maersk Olie og Gas AS in the Danish North Sea. Halliburton's Skandi Fjord vessel injected 12.4 million lb of sand and 3.6 million gal of fluid during the frac job. The job began Oct. 22 with a 70,000 gal acid injection and ended Nov. 29.

LNG

METHANE TRANSPORT, a joint venture of Gaz de France and ship owners Louis Dreyfus, was established to transport liquefied natural gas. The 125,000 cu m Edouard Louis Dreyfus LNG carrier, which transports GDF's LNG supplies from Algeria to France, will be transferred to the venture and its contract extended for 10 years. Methane Transport may add partners and plans to extend operations later within the framework of GDF's international activities.

PANHANDLE EASTERN CORP. units Trunkline Gas Co., Trunkline LNG Co., and Panhandle Eastern Pipe Line Co. filed with the Federal Energy Regulatory Commission to recover more than $400 million of costs related to the parent company's LNG project. Trunkline Gas' $306 million filing represents costs for accelerating LNG minimum bill payments, Trunkline LNG's $196 million filing is for take or pay costs, and Panhandle Eastern Pipe Line's $202 million filing is for LNG minimum bill and TOP costs.

TRANSPORTATION

TWO PIPELINES in Conroe, Tex., owned by Koch Industries Inc., Wichita, ruptured Feb. 29, sparking an explosion and fire that shot flames 1 50 ft in the air. The 16 mile, 8 in. pipelines, which carry propane and ethane, were shut down, but it took several hours for the gases to burn off. A guard at the plant and two firemen were injured. The pipelines are about 400 yards from a Texaco Chemical Co. plant, also shut down as a precaution.

OIL INDIA LTD.

commissioned the first phase of an underground natural gas storage system that is to save the country about $2.74 million in flared gas. The project, to be complete by the end of fiscal 1992-93, will involve injecting previously flared gas into five partly depleted gas reservoirs at depths of 2,200-2,600 m in Nahorkatiya and Jorajan fields in Northeast India. A pipeline will transport excess gas from the Duliajan gas processing plant to three of eight planned compressor stations in the two fields.

CHEVRON INTERNATIONAL OIL CO.

plans to sell its Rotterdam marine terminal, which consists of three storage tanks with total capacity of 31,000 cu m, a river barge jetty, and access to a ship jetty. The terminal is shut down and has been refurbished. Chevron said the sale results from a change in priorities for its marine fuel business.

INDIAN OIL CORP. LTD.

let a $1.5 million contract to British Gas plc to carry out consulting work on operation and maintenance of its 2.297 miles of hydrocarbon pipelines. The contract is funded by World Bank.

CANADA'S

National Energy Board will hold a hearing Mar. 24 on Westcoast Energy Inc.'s application to construct its Tommy Lakes gas pipeline, a 60.4 km extension from the Fort St. John gas gathering system to its Jedney line for delivery to the McMahon gas processing plant. The pipeline would extend north from the Bubbles compressor station on the Fort St. John raw gas system to a tie-in in eastern Tommy Lakes field.

ENCINA ENERGY CO.

acquired the business and assets of Coronado Transmission Co. for an undisclosed price. Both are of Corpus Christi. Encina's Encina Transmission Co. will operate the natural gas pipeline business, which includes 37 systems with 270 miles of pipeline in Texas, Louisiana, Mississippi, and Alabama. Encina's two main facilities are natural gas interchange hubs at Katy, Tex., and Waha in West Texas.

COMPANIES

AMOCO CANADA PETROLEUM CO ' LTD.

and Dow Chemical Canada Ltd. completed a $1 billion property exchange and rationalization, thus creating Crestar Energy Inc. (OGJ, Feb. 10, p. 44). Crestar is the 19th largest oil and gas company in Canada, with working interest production of about 20,000 b/d of oil and more than 150 MMcfd of gas. Initially Crestar will be jointly owned by Amoco and Dow, but both intend to sell their shares to the public beginning in 1994.

ENRON POWER CORP.,

Houston, formed Enron Power Development Corp. to develop power projects in the U.S. and all non-U.S. markets outside Europe and former Soviet republics. Enron Europe Ltd. will continue developing markets in Europe and former Soviet republics.

NUEVO ENERGY CO.,

Houston, plans to form an exploration subsidiary by acquiring certain assets and personnel of Paramount Petroleum Co. Inc., Jackson, Miss. Plans call for Nuevo to acquire 100% interests in 5 of 26 exploratory prospects generated by Paramount, including West Mexia and West Monroeville prospects on the Haynesville trend in Monroe County, Ala., and three offshore prospects in Louisiana state waters off Plaquemines Parish.

COGENERATION

MOBIL CORP.

put on line a cogeneration plant at its Paulsboro, N.J., refinery enabling the refinery to sell excess power to the local electric utility. The plant is fueled by natural gas and refinery byproduct gas and eliminates the need for externally supplied electricity. Mobil said electricity savings alone will be about $1 million/month. Mobil refineries at Torrance, Calif., and Joliet, Ill., use the technology, and a plant is planned for the Beaumont, Tex., refinery.

REFINING

BP OIL CO.

reached a settlement agreement with the Ohio Environmental Protection Agency covering alleged violations of air permit regulations at BP's Toledo refinery. BP agreed to pay a $625,000 penalty and undertake environmental control projects that will reduce the refinery's emissions by 40%. BP's environmental commitment will cost about $13 million in addition to a planned $138 million diesel hydrotreater (OGJ, Feb. 17, p. 42).

TANKERS

OVERSEAS SHIPHOLDING GROUP INC.,

New York, ordered late last year a total of four 93,650 dwt double hulled tankers scheduled for delivery in late 1993 and 1994. The company also sold a 162,400 dwt ore-oil carrier, a 166,500 dwt ore-oil carrier, and 26,000 dwt geared bulk carrier, bringing its operating fleet to 65 vessels totaling 6.1 million dwt.

LIBERIA'S

Intrigue Shipping Co. purchased two 76,000 dwt ships previously owned by Ultramar Shipping Co. Inc. from Lasmo plc for $49.65 million. MV Badak and MV Nilam oil-bulk-ore-carriers were built in 1985 in Spain.

EXPLORATION

INTERNATIONAL EGYPTIAN OIL CO.,

a subsidiary of Agip SpA, in partnership with units of Ste. Nationale Elf Aquitaine, Total, and Repsol SA tested a wildcat on East Delta permit on Egypt's Nile Delta at combined rate of 55 MMcfd of gas and 900 b/d of condensate from two zones below 10,000 ft. The wildcat is about 12-1/2 miles from Abu Madi gas field. An appraisal well is planned, and a study has begun on developing the find via Abu Madi facilities, currently producing about 400 MMcfd.

GULF OF SUEZ PETROLEUM CO.

GS 315-4 wildcat in Egypt's Central Gulf of Suez about 200 miles southeast of Cairo flowed at rates of as much as 8,790 b/d from Miocene Kareem. The well is on a separate structure adjacent to Badri and East Badri fields, and development options are being evaluated. Badri field produces about 45,000 b/d of oil from 24 wells on five platforms. Those facilities process about 7,200 b/d of oil from the two well East Badri field, Gupco is owned by Amoco Egypt Oil Co. and Egyptian General Petroleum Co.

ELF AQUITAINE ANGOLA

1 Oombo wildcat on Block 3/91 off Angola flowed 4,770 b/d of oil from one zone and 3,610 b/d of oil from a shallower zone. The discovery is about 5 km south of Cobo field on Block 3/85 (OGJ, Apr. 2, 1990, p. 40). A second discovery, 1 Caama Centre about 12 km east of Cobo field, flowed 5,000 b/d of oil.

CHILE'S

Empresa Nacional de Petroleo (ENAP) 1 Lago Mercedes wildcat on 3,300 sq km Lago Mercedes block in South Central Tierra del Fuego flowed 14.1 MMcfd of gas and 1,260 b/d of condensate from 217 ft of net pay in three zones at 12,139-13,287 ft. Operator ENAP owns 50% interest in the block, Texaco Exploration Lago Mercedes Chile Inc. 25%, and Anderman Smith Chile Inc. and Argerado Chile Inc. 12.5% each.

UNION PACIFIC RESOURCES CO.,

Fort Worth, plans to spud a horizontal wildcat in Wyoming's Big Horn basin about 12 miles east of Worland, Wyo., this April. The company plans to drill to true vertical depth of about 10,000 ft targeting Permian Phosphoria. Union Pacific recently purchased 75% interest in about 40,000 acres in the basin from Hayes Oil & Gas Co., Arlington, Tex.

TUNISIA

awarded an exploration permit to Marathon Oil Co. covering the 1.35 million acre Serj license area, immediately south of Gromalia exploration permit. Tunisia's state owned ETAP retains rights to acquire 50% interest in Serj if commercial production is established.

EQUATORIAL GUINEA

awarded First Exchange Corp., subsidiary of First Seismic Corp., Houston, exclusive rights to acquire, reprocess, and market seismic data covering the country's unlicensed areas. First Exchange will help Equatorial Guinea with a licensing round in December 1992.

EXPORTS-IMPORTS

SANTOS LTD.

shipped 600,000 bbl of Cooper basin crude oil valued at about $16 million to Balikpapan refinery, the first sale of Cooper basin crude to Indonesia and the 400th oil shipment from Port Bonython. Since Australia deregulated crude oil marketing in 1988, Santos has sold Cooper basin oil into markets in Japan, South Korea, China, Singapore, New Zealand, and the U.S. Other markets under evaluation include India and Thailand.

LOUIS W. POWERS,

president of Powers Petroleum Consultants Inc. and author of a study on U.S. oil import vulnerability, is based in Houston, not Dallas as originally reported (OGJ, Jan. 20, p. 24).

THE BREAKAWAY YUGOSLAVIAN REPUBLIC

of Slovenia started taking deliveries of gas from Algeria. Under a 15 year contract, 21 bcf/year of gas will be delivered through the Trans Mediterranean pipeline to Italy and a new 22 mile spur built by Italy's Snam linking the Italian and Slovenian grids.

SPILLS

A BARGE

owned by Sargeant Transportation Inc., Coral Springs, Fla.-not a Shell Oil Co. tanker as reported (OGJ, Mar. 2, p. 27)-sank Feb. 9 off Yucatan, spilling 20,000 bbl of bitumen and 5,000 bbl of heavy fuel oil into the Gulf of Mexico. The shipment was bound for Royal/Dutch Shell Group affiliates Shell Belize Ltd., Shell Honduras SA, and Shell Guatemala SA. All but 5,000 bbl of bitumen was owned by the shipper. Royal/Dutch Shell last week was in contact with Sargeant and Mexican marine pollution authorities in charge of monitoring and cleanup operations.