The Oil and Gas Journal articles from August 1998

The Oil and Gas Journal archives from August 1998

Newsletter.
August 3, 1998... Reports that major OPEC countries were adhering to recent pledges of production cuts helped North Sea Brent crude gain ground on the Singapore International Monetary Exchange (Simex) on July 27. Another report of disagreement between Baghdad and...

U.S. INDUSTRY SCOREBOARD 8/3.(Illustration)
August 3, 1998... U.S. INDUSTRY SCOREBOARD 8/3 4 wk. 4 wk. avg. % Latest week 7/24 average year [ago.sup.*] change Demand (1,000 b/d) Motor gasoline 8,322 8,441 ...

Motor-vation.
August 3, 1998... Number one on the comic strip character Dilbert's list of "Smallest rewards given for major achievements" is a story of an employee who worked a month away from his family. For his hard work, he received a plaque, on which his name was misspelled...

The climate change debate.
August 3, 1998... "The American people expect and deserve a fair, honest, and informed debate on the issue of climate change," said U.S. President Bill Clinton after the House of Representatives killed an effort to block administration seminars on the subject....

Ocelot's diligence key to success of small Calgary independent's African projects.
August 3, 1998... Calgary-based Ocelot Energy Inc. is proving smaller North American independents can operate successfully abroad, with its projects in Gabon and Tanzania. Successful project development in Gabon and Tanzania is the payoff on careful...

Peru slates tender for Camisea project.
August 3, 1998... The Peruvian government has invited gas producing and transportation companies interested in participating in a forthcoming tender for the Camisea natural gas fields project to forward company data to state regulatory agency Perupetro SA. The...

W. Natuna gas project marks progress.
August 3, 1998... A group of West Natuna Sea operators led by Conoco Indonesia Inc. and Indonesian state oil company Pertamina have concluded an $8 billion gas sales agreement (GSA) with a consortium led by Sembawang Corp., called Sembgas, for the first...

Mexico to not lift tariff on gas imports in 1998.
August 3, 1998... Mexico will not consider lifting its tariff on natural gas imports this year, says the general director of state-owned Petroleos Mexicanos. The Pemex chief, Adrian Lajous, told a natural gas conference in Mexico City last week that "the...

Deepwater spending to nearly double by 2002.
August 3, 1998... Petroleum companies will increase capital spending on deepwater oil and gas developments by 85% during the next 5 years, says Douglas-Westwood Ltd., Canterbury, U.K. Deepwater expenditures in 2002 will be $18.8 billion vs. $10.8 billion in...

Most EU countries ban platform dumping.
August 3, 1998... Fifteen European countries have banned offshore disposal of oil and gas platforms, following a meeting of the Oslo-Paris (Ospar) Convention of environment ministers at Sintra, Portugal, late last month. The countries are mainly European Union...

U.S. DOE to lease crude storage space in SPR to private firms.
August 3, 1998... The U.S. Energy Department has offered to let private companies store crude in unused space its Strategic Petroleum Reserve sites on the Texas/Louisiana Gulf Coast. DOE said that, rather than paying a storage fee, companies would transfer a...

Hydrogen key to EU refiners' future.
August 3, 1998... Transportation visionaries say hydrogen is the fuel of the future, but for Europe's refiners, it is a key ingredient for making conventional fuels today. The European Union recently unveiled tougher gasoline and diesel quality requirements,...

BP, supermarket form retail chain.(BP Oil, Safeway)
August 3, 1998... BP Oil Ltd. and Safeway, one of a number of supermarkets that have recently captured a share of U.K. retail sales, have announced a retailing joint venture. The companies plan to spend [pounds]100 million ($160 million) to convert 100 existing...

NOVA to buy Huntsman's styrenics business.
August 3, 1998... NOVA Corp., Ca1gary, has signed a letter of intent to acquire the North American and European styrenics holdings of Huntsman Corp., Salt Lake City. The transaction is valued at $920 million. NOVA will pay Huntsman $685 million in cash and $235...

MMS issues final notice for western gulf lease sale.
August 3, 1998... The U.S. Minerals Management Service has issued a final notice for an Aug. 26 Western Gulf of Mexico lease sale in New Orleans. Sale 171 will offer 20.64 million acres off Texas and Louisiana. The 3,778 available blocks are 9-200 miles...

Western battles.
August 3, 1998... Oil and gas operators are well aware that the lands available for oil and gas leasing in the Western U.S. are shrinking. A recent industry survey found that access to federal lands in eight western states has declined by more than 60% since...

Shell Petroleum Development Nigeria Ltd.(Brief Article)
August 3, 1998... reported that about 1,850 bbl of crude oil spilled near its 12-in. Benisede-Isampou delivery lines in the Southern Swamp operational area of southeastern Nigeria. The spill occurred primarily on land and was discovered July 24. The line has been...

U.K. Health and Safety Executive.(Brief Article)
August 3, 1998... (HSE) published a guidance document declaring the principles against which safety cases for U.K. offshore oil and gas installations are evaluated. For every offshore installation, U.K. operators must provide a safety case to HSE documenting that...

EuroGas Inc.,.(Brief Article)
August 3, 1998... New York, and RWE-DEA AG fur Mineraloel & Chemie (RWE-DEA), Hamburg, formed a 50-50 joint venture exploration and development company called RWE-DEA EuroGas E&D (Ukraine). The new firm will explore and develop EuroGas's Ukrainian oil and gas...

Superior Propane Inc.,.(Brief Article)
August 3, 1998... Calgary, agreed to acquire IGC Propane Inc., a unit of Petro-Canada Ltd., for $175 million (Canadian). The deal would give Superior about 70% of Canada's propane market, making it North America's third-largest propane distributor. Ottawa's...

Braspetro Oil Services Co.,.(Brief Article)
August 3, 1998... Braspetro Oil Services Co., a unit of state-owned Petrobras, acquired the Lasmo Oil (Colombia) Ltd. subsidiary of Lasmo plc, London, for $151 million. About 75% of the sale price will be paid in cash, with the remaining 25% deferred until April...

Duke Energy Transport & Trading Co. (Brief Article)
August 3, 1998... Duke Energy Transport & Trading Co. signed a letter of intent to purchase Dynegy Inc.'s 150,000 b/d U.S. crude oil supply, transportation, and marketing operations. The deal would involve Dynegy's crude oil pipeline, gathering, and marketing...

Triton Energy Ltd.,.(Brief Article)
August 3, 1998... Dallas, laid oft 65 employees from its Dallas office as part of a corporate restructuring and cost-reduction plan (OGJ, July 27, 1998, p. 36). The move cuts Triton's Dallas staff by more than one third and its worldwide staff by one fourth.

Imperial Oil Ltd.,.(Brief Article)
August 3, 1998... Toronto, will build a $250 million (Canadian) natural gas processing plant and pipelines in the Caroline area of Alberta, northwest of Calgary. Imperial said it will have partners in the 2.5 bcfd WestAlta straddle gas plant. Completion is...

TransCanada PipeLines Ltd.,.(Brief Article)
August 3, 1998... Calgary, filed an application with Canada's National Energy Board to reduce its 1999 expansion spending to $405.5 million (Canadian) from $981 million (OGJ, June 22, 1998, p. 35). The company said the changes would lower costs for shippers by...

BC Gas Inc.,.(Brief Article)
August 3, 1998... Vancouver, B.C., and its Trans Mountain Pipe Line Co. unit are joining a study by Shell Canada Ltd. and BHP Co. Ltd. of the proposed $440 million (Canadian) Corridor pipeline. The 450-km pipeline would connect the Muskeg River Mine on Shell's...

Bufete do Infrastructure Maritima Mexicana SA de CV.(Brief Article)
August 3, 1998... Bufete do Infrastructure Maritima Mexicana SA de CV let a $4 million contract to a unit of TransCoastal Marine Services Inc., Houston, for pipelaying in Cantarell field using TransCoastal's Vermilion Bay lay barge. The barge was slated to depart...

Bechtel Enterprises Inc.(Brief Article)
August 3, 1998... Bechtel Enterprises Inc. and GE Capital Structured Finance Group formed PSG International Ltd. to develop, finance, build, own, and operate major pipeline transportation systems, with an initial focus on the Caspian Sea region. PSG will target...

Vector Pipeline Ltd. Partnership,.(Brief Article)
August 3, 1998... Calgary, applied to NEB to build a $35.4 million (Canadian) 15-mile, 42-in, natural gas pipeline in southwestern Ontario. The 1 bcfd line would extend from the international border on the St. Clair River, near Sarnia, Ont., to Dawn, Ont., in...

Calpine Corp.,.(Brief Article)
August 3, 1998... San Jose, Calif., acquired Dow Chemical Co.'s 70-MW natural gas-fired power plant at Dow's Pittsburg, Calif., chemical plant for about $13 million. The acquisition includes Dow's gas pipeline system in the Sacramento basin. Calpine has hired a...

U.S. Minerals Management Service.(Brief Article)
August 3, 1998... U.S. Minerals Management Service will hold OCS Lease Sale 170 in the Beaufort Sea on Aug. 5,1998, in Anchorage. MMS is offering 241 whole and partial blocks totaling about 1 million acres off the central North Slope coast. The area extends from...

Amoco Canada Petroleum Ltd.,.(Brief Article)
August 3, 1998... Calgary, reports that a discovery in the Rocky Mountain foothills, 149 miles northwest of Calgary, is producing gas at a rate of more than 70 MMcfd. The Blackstone field discovery well was drilled to 15,551 ft. A second well in the same...

Anadarko Petroleum Corp.,.(Brief Article)
August 3, 1998... Houston, reported OCS-G 14482 No. 1 exploration well on its Tanzanite prospect on Eugene Island South Addition Block 346 cut 450 ft of hydrocarbon pay. Operator and 100% owner Anadarko said the well, drilled to 14,350 ft TD in 314 ft of water...

Vastar Resources Inc.,.(Brief Article)
August 3, 1998... Houston, found two new major oil-bearing zones on its King prospect on Mississippi Canyon Block 764 in the Gulf of Mexico. The finds are in addition to two shallower oil-bearing zones found previously. The King well, suspended at 17,580 ft MD in...

Anadarko Petroleum's.(Brief Article)
August 3, 1998... A-7 well discovered new reserves that were fault-separated from the main field reservoir on East Cameron Block 157 in the Gulf of Mexico. On test, the well flowed 40 MMcfd of gas and 1,129 b/d of condensate with 2,235 psi flowing tubing pressure....

Meridian Resource Corp.,.(Brief Article)
August 3, 1998... Houston, tested a previously reported discovery made by the Myles Salt No. 32 well in Weeks Island field. The well was directionally drilled under a salt overhang on the north flank of Weeks Island Dome and cut 551 ft of gross pay in the U sand....

Syncrude Canada Ltd.'s.(Brief Article)
August 3, 1998... oilsands plant in northern Alberta shut down one of two cokers on July 24, cutting plant capacity in half. The unit, which heats and cracks extracted bitumen to produce naphtha and gas oils, was idled because of clogged feed lines. Repairs could...

Institut Francais du Petrole,.(Brief Article)
August 3, 1998... Institut Francais du Petrole, licensed Its Alphabutol process to Sidi Kerir Petrochemicals (Sidpec), Alexandria, Egypt, for use in a 10,000 metric ton/year butene-1 unit to be built as part of an ethylene-polyethylene complex. Sidpec let contract...

A joint venture of.(Brief Article)
August 3, 1998... BASF Corp., Mount Olive, N.J., and Fina Inc., Dallas, let a $600 million turnkey contract to ABB Lummus Global, Bloomfield, N.J., to build a liquids-feed steam cracker at Fina's Port Arthur, Tex., refinery (OGJ, Sept. 29, 1997, Newsletter). The...

Tema Oil Refinery Ltd.,.(Brief Article)
August 3, 1998... Ghana's state-run refining company, let a $240 million contract to Samsung Engineering Corp. to build a 14,000 b/d gasoline and LPG plant at its 26,600 b/d refinery at Tema, Ghana. Completion is scheduled for 2001.

India approved a project by.
August 3, 1998... Bharat Oman Refinery Ltd.'s (BOR) involving a refinery, crude oil pipeline, single buoy mooring (SBM), and crude oil terminal in Gujarat. BOR is a joint venture of lndia's Bharat Petroleum Corp. Ltd. and Oman Oil Co. Each will hold a 26% equity...

BP Exploration Operating Co. Ltd.
August 3, 1998... BP Exploration Operating Co. Ltd. began oil production from Schiehallion field in the U.K's West of Shetland sector on July 29. Production is 30,000 b/d from one well and is expected to peak at 154,000 b/d. BP is developing Schiehallion and...

Mobil details plans for Taiwan LNG terminal.
August 3, 1998... Mobil Corp. unit Mobil LNG & Power Inc. has disclosed more details about its plans for a liquefied natural gas terminal in Taiwan, a project that would be the largest foreign investment in Taiwan's petroleum sector. Early reports from Taiwan...

China to set up products pipeline grid.
August 3, 1998... Chinese state-owned integrated petroleum major China National Petroleum Corp. has disclosed plans to lay two long-distance refined products pipelines in northeastern China and southwestern China in a bid to establish the country's products...

Injecting acid gas with water creates new disposal option.
August 3, 1998... Dave Kopperson is a specialist in corrosion and chemicals in the operations engineering department of PanCanadian Petroleum Ltd., Calgary. His responsibilities include integrity and reliability of pipelines and pressure vessels as well as design,...

NELSON-FARRAR COST INDEXES.(Illustration)
August 3, 1998... NELSON-FARRAR COST INDEXES Refinery construction (1946 Basis) (Explained on p. 145 of the Issue of Dec. 30, 1985) 1962 1980 1995 1996 1997 Pumps, compressors,...

Expansion-loop enclosure resolves subsea line problems.
August 3, 1998... Sharon K. Rich is a project engineer at Intec Engineering Inc., Houston, with 6 years' experience in international offshore pipeline projects for the oil and gas industry. Rich holds a BS in marine engineering from Texas AE-M University and is a...

Drilling costs and professional development affect bottom line.
August 3, 1998... The effects of drilling costs on the bottom line can be measured, proving that the retention of the drilling function within a major oil company can tangibly add value to corporate endeavors. An effective global organization needs to...

Qatar project expands ethylene production.
August 3, 1998... Saleh M. Al-Halaki is ethylene superintendent at Qapco Petrochemical Co. Ltd. He has 10 years of experience at the petrochemical complex. As operation leader of the Qapco project, he was in charge of the project task force for the revamping...

South African furnace revamp improves ethylene yields.
August 3, 1998... Wolf Fischer works for Polifin Ltd., and he was the Polifin project manager for the ethylene-furnace revamp project. Fischer holds a BS in chemical engineering from the University of Pretoria, South Africa. Philipps Najm is manager of...

Petrochem complex shields refining profits.
August 3, 1998... Integrating existing refinery operations into petrochemical production can improve refining profitability. In the past 10 years, the return on replacement capital in the U.S. petrochemical industry has averaged 15.6%, and that in refining has...

Wireless remote controller.
August 3, 1998... Here's the ScadaLink 900-MB wireless remote controller designed for remote monitoring and control of pump jacks, screw pumps, injection wells, gas detection, remote valve sites, and tank levels. Cost effectiveness is achieved by combining control...

Controller designed for remote applications.
August 3, 1998... This new ScadaPack controller is designed for remote applications such as pipeline and production opertions. It is programmable in relay ladder logic and multitasking C, provides as many as four communication ports, and does not require...

Flexible exploration plug.
August 3, 1998... The Van-Stem flexible plug provides a tamperproof environmental seal for exploration holes. Easy to use, simply push the plug down to the desired level with a shovel handlel or Loading pole and back fill with durill cuttings or clay as local...

Halliburton Energy Services (HES).
August 3, 1998... Halliburton Energy Services (HES), Dallas, Tex., a business unit of Halliburton Co., and Expro Americas, Inc., a business unit of the Expro Group, have formed an alliance to provide a unique range of subsea technology and testing services to...

Natsource Inc.
August 3, 1998... Natsource Inc., New York, N.Y., has opened a full service regional office in Houston, Tex. Natsource is a broker of energy related products and participates in the power, natural gas, coal, weather hedging and emissions allowance credit...

The Falcon Group.
August 3, 1998... The Falcon Group, Houston, Tex., is about to start construction on an 8,400 square-foot pilot plant for Baker Petrolite in Bayport. The $1.2 million, pre-engineered metal building, located on Fairmount Parkway at the Baker Petrolite Bayport...

CRC-Evans Pipeline International Inc.
August 3, 1998... CRC-Evans Pipeline International Inc. has announced that its holding company, CRC Holdings, has purchased the assets of B.L. Key Services, Tulsa, Okla. B.L. Key Services is a provider of concrete weight products for the pipeline construction...

Swaco.
August 3, 1998... Swaco, a division of M-I L.L.C., Houston, Tex., has acquired Safeguard Disposal Systems, Inc. of Lafayette, La. Safeguard provides equipment, supplies and services for zero discharge services, Complementing its patented vacuum drill cuttings...

The Expro Group.
August 3, 1998... The Expro Group, Aberdeen, Scotland, has acquired cased hole intervention specialists, Saltus Sub Surface Systems Ltd. (4S). The acquisition forms part of the continuing strategic development of the Expro Group's recently formed Cased Hole...

HydroChem Industrial Services, Inc. and Landry Service Co., Inc. (LANSCO).
August 3, 1998... HydroChem Industrial Services, Inc. and Landry Service Co., Inc. (LANSCO) have announced that HydroChem will acquire LANSCO. LANSCO provides tank cleaning services, primarily to refineries throughout the U.S., and specializes in on-site sludge...

Exploratory interest renewed in Oters County, N.M.
August 3, 1998... Ronald F. Broadhead is senior pet petroleum geologist assistant director at the New Mexico Bureau of Mines & Mineral Resources, a division of New Mexico Tech. He has worked as a petroleum geologist with the former Cities Service Oil Co. His...

Publication.
August 3, 1998... Atlas of Shallow Mississippi Salt Domes, by Stanley C. Thieling and Jack S. Moody. published by Mississippi Office of Geology, Box 20307, Jackson, Miss. 39289-1307. 328 p., $25 plus shipping. Bulletin 131 contains essential information on 53...

India.
August 3, 1998... Shell India Production and Development Ltd. plans to drill its first well in Rajasthan by yearend 1998 after 3 years of surveying. Shell has invested about $12 million and plans to spend a further $9 million the next 6 months. Site for the...

Amoco petrophysics graduates takle reservation complexities.
August 3, 1998... How many years has integration of exploration and production geoscience disciplines been a buzz phrase in the oil and gas industry? Probably not as long as Amoco has been conducting a petrophysics program at its Tulsa, Okla., technology center....

Offshore licensing, land exploration set in Peru.
August 3, 1998... Peru is preparing to call bid rounds by yearend 1998 for 13 blocks of nearly 1 million acres each from Tumbes near the border with Ecuador to Pisco about 130 miles south of Lima. The 400,000 ha offshore blocks cover parts of the Talara,...

Mississippi.
August 3, 1998... Fina Oil & Chemical Co. was preparing to conduct an acid frac job on an exploratory test in Oktibbeha County. Logs at the 1 Sanders, in 27-19n-12e, indicated presence of more than 50 ft of potentially productive interval in Cambro-Ordovician...

West Virginia.
August 3, 1998... Union Drilling Inc., Buckhannon, W.Va., acquired American Energy Corp., Charleston, W.V., including three drilling rigs.

API IMPORTS OF CRUDE PRODUCTS.(Illustration)
August 3, 1998... API IMPORTS OF CRUDE PRODUCTS Districts 1-4 Districts 5 7-24 [7-17.sup.*] 7-24 1998 1998 1998 ...

OCJ CRACK SPREAD.(Illustration)
August 3, 1998... OCJ CRACK SPREAD [7-24-98.sup.*] [7-25-97.sup.*] change % ($/bbl) change SPOT PRICES Product value 15.87 23.47 ...

API CRUDE AND PRODUCT STOCKS.(Illustration)
August 3, 1998... API CRUDE AND PRODUCT STOCKS Motor gasoline Blending Crude oil Total [Comp.sup.+]....

API REFINERY REPORT--JULY 24, 1998. (Illustration)
August 3, 1998... API REFINERY REPORT--JULY 24, 1998 REFINERY OPERATIONS Total Input refinery Crude to crude Operable District ...

OGJ GASOLINE PRICES.(Illustration)
August 3, 1998... OGJ GASOLINE PRICES Price ex tax 7-22-98 (Approx,...

BAKER HUGHES RIG COUNT.(Illustration)
August 3, 1998... BAKER HUGHES RIG COUNT 7-24-98 7-25-97 Alabama 8 4 Alaska 12 13 Arkansas 2 7 California 27 36 Land...

OGJ PRODUCTION REPORT.(Illustration)
August 3, 1998... OGJ PRODUCTION REPORT [7-24-98.sup.*] [7-25-97.sup.+] (1,000 b/d) (Crude oil and lease condensate) Alabama 38 40 Alaska ...

U.S. CRUDE PRICES.(Illustration)
August 3, 1998... U.S. CRUDE PRICES [($/bbl).sup.*] 7-24-98 Alaska-North Slope 27[degrees] 8.55 Southern Louisiana Light 12.50 California-Kern River 13[degrees] 8.25 Lost Hills...

WORLD CRUDE PRICES.(Illustration)
August 3, 1998... WORLD CRUDE PRICES [($/bbl).sup.*] 7-17-98 United Kingdon-Brent 38[degrees] 12.43 Russia-Urals 32[degrees] 11.63 Saudi light 34[degrees] 11.53 Dubai...

REFINED PRODUCT PRICES.(Illustration)
August 3, 1998... REFINED PRODUCT PRICES 7-17-98 (o/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor 42.03 Gulf Coast ...

SMITH RIG COUNT.(Illustration)
August 3, 1998... SMITH RIG COUNT 7-24-98 Proposed depth Rig Count % [footage.sup.*] Rig Count (ft) 0-2,500 13 7.6 17 2,501-5,000 68 63.2 ...

AGA NATURAL GAS[STORAGE.sup.*].(Illustration)
August 3, 1998... AGA NATURAL GAS[STORAGE.sup.*] 7-17-98 7-10-98 Change -----(bcf)----- Producing region 700 678 22 Consuming region east 1,233...

PACE REFINING MARGINS.(Illustration)
August 3, 1998... PACE REFINING MARGINS May June July July % 1998 1998 1998 1997 Change Change U.S. Gulf Coast West Texas Sour 4.95 4.68 3.70 4.58 -0.88 -19.2 West...

U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.(Illustration)
August 3, 1998... U. S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD Apr. Total Apr. Mar. Apr. change ---YTD--- 1998 1998 197...

WORLDWIDE NGL PRODUCTION.(Illustration)
August 3, 1998... WORLDWIDE NGL PRODUCTION 4 month Chg. Va. average Previous Production year Apr....

OXYGENATES.(Illustration)
August 3, 1998... OXYGENATES May Apr. YTD YTD 1998 1998 Change 1998 1997 Change 1,000 bbl Fuel ethanol Production 2,523 2,546 -23 13,085...