The Oil and Gas Journal articles from December 1997

The Oil and Gas Journal archives from December 1997

Newsletter.ec 1/y'97/?n48
December 1, 1997... More countries are revealing the schemes for which they will fight at the Kyoto conference on global climate change. starting Dec. 1. Following revelations by the EU, U.S., and Canada (see related story, p. 29), Australia has unveiled its...

LETTERS.
December 1, 1997... Energy logic? With reference to David Knott's column, Watching the World (Oct. 20, 1997, p. 43), some of the numbers work out with the same logic the greens have been throwing around for quite some time. "Also, BP Solar won a contract to...

Saved from obscurity.
December 1, 1997... Rarely do we devote this column to a book review. But recently an exceptional book on the offshore oil industry landed on my desk with a request from one of its authors for a review. One chapter in my career involved a stint in the Gulf of...

U.K. renewable mandates.(using renewable energy)
December 1, 1997... There are good ways and bad ways to promote renewable energy. And there are good reasons and bad reasons to do so. Examples of good and bad ways to promote renewable energy surfaced recently in Europe. Demonstrating the good way is Royal...

Industrialized, developing nations clash at Kyoto climate change talks.
December 1, 1997... Energy Policies Editor Scientists may disagree as to whether postulated catastrophic global warming is a real threat, but the oil industry realizes that a possible outcome of that debate is a threat to its future prosperity. Some scientists,...

Washington briefs.
December 1, 1997... Crow, Patrick Congress left town last month without acting on the major energy issue of the session: decontrol of the retail electricity marketplace. That was no surprise, for few expect this Congress to agree on a bill. James Hoecker,...

EC to boost CHP schemes to cut greenhouse gas emissions.(combined heat and power)
December 1, 1997... The European Commission has unveiled a strategy to boost development of combined-heat-and-power (CHP) schemes, a plan driven in part by climate change concerns. The EC has adopted a proposal by Energy Commissioner Christos Papoutsis to use tax...

Pemex lobbying against tariff cut proposal.
December 1, 1997... "Pemex is understandably reluctant to have alternative supplies of natural gas imported into Mexico, given the serious environmental and commercial problems it faces with its high-sulfur (4%) fuel oil. Pemex needs Mexican industry as an outlet...

Russia approves plan to privatize Rosneft.
December 1, 1997... The Russian government has approved a plan to privatize Rosneft, its last major holding in the oil industry and the fifth largest Russian oil company. Under the plan, the government would raise up to $1 billion by selling its 100% interest by...

Two major deals highlight U.S. M&A activity.
December 1, 1997... U.S. petroleum industry merger and acquisition activity continues apace with last week's disclosure of two major deals together worth $4 billion. Mapco Inc. and Williams Cos. Inc., both of Tulsa, have signed a definitive merger agreement under...

How to survive the merger battle.(petroleum industry)
December 1, 1997... Davidk@ogjonline.com The petroleum majors have all completed massive cost reduction and rationalization programs and are enjoying record returns. This is the view of the Pan-European Oil Team at UBS Ltd., London, which reports that these...

Anadarko, Mobil form deep Hugoton alliance.
December 1, 1997... Anadarko Petroleum Corp., Houston, and Mobil Exploration & Producing U.S. Inc. (Mepus) have formed a strategic alliance combining much of their deep Hugoton embayment acreage in southwest Kansas and the Oklahoma panhandle. The companies will...

Wood Mackenzie: Angola the new hot spot.(offshore oil industry)
December 1, 1997... Three potentially giant oil discoveries in a little more than 12 months have confirmed Angola's deepwater area as a global exploration hot spot. This is the view of Wood Mackenzie Consultants Ltd., Edinburgh, which says development of these...

Work barge ready for gulf work.(J. Ray McDermott, Gulf of Mexico)
December 1, 1997... J. Ray McDermott Inc., Morgan City, La., has upgraded its Derrick Barge 16 to take advantage of construction opportunities in the deepwater Gulf of Mexico. Modifications to DB16 include installation of: four constant-pitch, 2,000-hp, DC-driven...

The Dominican Republic.
December 1, 1997... The Dominican Republic is to build a power station consisting of two 135-MW electricity generating units designed for dual combustion of coal and oil. The project will cost about $270 million and will be built by a group led by Mecanica de la...

Enron Wind Corp.
December 1, 1997... 22hachapi, Calif., will build a 39-MW wind farm on two sites in Southern California. A farm at a Riverside County site will generate 16 MW starting in third quarter 1998, and a second farm at an undetermined site will generate 23 MW beginning in...

Bolivia.(petroleum contract)(Brief Article)
December 1, 1997... Bolivia awarded the Naranjillos field in Santa Cruz province to Vintage Petroleum Inc., Tulsa. Naranjillos contains exploratory prospects and proved reserves of 115.8 bcf of gas equivalent. Vintage bid a 3-year work commitment and a $1 million...

Petroleum Authority of Mongolia.
December 1, 1997... Petroleum Authority of Mongolia awarded Mantaur Petroleum Corp., Toronto, production-sharing contracts for Ergel Block XII and Buyantumen Block XVII. Each is about 3 million acres. Block XII is in the East Gobi basin of southeastern Mongolia,...

Noranda Inc.
December 1, 1997... Toronto, is selling its 49% interest in Norcen Energy Resources Ltd., Calgary, and its wholly-owned unit Canadian Hunter Exploration Ltd., Calgary. Norcen is worth about $4.5 billion (Canadian), including $1 billion in debt; Canadian Hunter is...

Comstock Resources Inc.
December 1, 1997... Dallas, agreed to acquire Bois d'Arc Resources interests in 37 wells and 8 producing complexes in the Gulf of Mexico off Louisiana. Purchase price is $203.4 million cash. The deal includes interests in Main Pass Blocks 21 and 25; Ship Shoal...

NOVA Corp.
December 1, 1997... Calgary, will reorganize into two independent, publicly traded companies: one a chemical company and the other an energy services company. The chemical company will include NOVA's 26% interests in both Methanex Corp., Vancouver, B.C., and NGC...

Amoco (U.K.) Exploration Co.
December 1, 1997... Amoco (U.K.) Exploration Co. exchanged its interest in Clair discovery in U.K.'s West of Shetland area for a supply of gas from Conoco (U.K.) Ltd. Conoco will take over Amoco's 33.3% interest in Block 206/9a, which includes a 4.34% interest in...

BG plc.
December 1, 1997... BG plc sold its German assets to Verbundnetz Gas AG (VNG), Leipzig. These include a 5% interest in VNG and interests in two regional transmission and distribution companies: 24% in Gasversorgung Sachsen-Anhalt and 25.5% in Erdgas West-Sachsen. BG...

Qatar and Methanex Corp.
December 1, 1997... Qatar and Methanex Corp. plan to invest $1 billion to build a methanol plant at Ras Laftan, Qatar. The partners will complete a feasibility study and then sign a final agreement. Qatar would hold a 51% interest in the plant, which will have a...

Equate Petrochemical Co.
December 1, 1997... Equate Petrochemical Co. started up its world-scale petrochemical complex at Shuaiba, Kuwait (OGJ, July 24, 1995, P. 22). The $2 billion plant will produce and market polyethylene and ethylene glycol to the Far East, Middle East, and Europe....

ARCO Chemical Nederland Ltd.
December 1, 1997... ARCO Chemical Nederland Ltd. let contract to a joint venture of JGC Corp. and ABB Lummus Global for engineering, procurement, and construction of a propylene oxide/styrene monomer (P0/SM) plant at Rotterdam. ARGO says the complex, with capacity...

Dow Chemical Co.
December 1, 1997... Dow Chemical Co. will close a 45-year-old styrene plant at Sarnia, Ont., because it cannot compete with newer plants. The company said no jobs will be lost because it is looking at new business ventures and locations for a new styrene plant. Dow...

Eastern Petrochemical Co.
December 1, 1997... Eastern Petrochemical Co. (Sharq) plans a [yen]150 billion expansion of its AI-Jubail, Saudi Arabia, petrochemical complex. The complex includes a 450,000 ton/year linear low-density polyethylene (Lidpe) plant and, under a joint venture with...

Montell Polylelins BV's.
December 1, 1997... Polibrasil joint venture with Brazilian firm Suzano SA plans to build a world-scale polypropylene plant at Capuava, near Sao Paulo. The $150 million, 240,000 metric ton/year plant will begin operation late in 1999. The unit will bring...

IPL Energy Inc.,.
December 1, 1997... Calgary, is increasing planned capacity of a proposed 36-in., $800 million (Canadian) crude oil pipeline from Kerrobert, Sask., to Clearbrook, Minn., to 270,000 b/d from 120,000 b/d. The 994-mile Terrace line is scheduled for completion in late...

U.S. Federal Energy Regulatory Commission.
December 1, 1997... U.S. Federal Energy Regulatory Commission approved construction of the $308 million Destin natural gas pipeline. A project of Shell Oil Co., Amoco Corp., and Sonat Inc., the 210-mile pipeline will transport up to 1 bcfd of gas from the Gulf of...

Petronet India.
December 1, 1997... Petronet India permitted three pipeline projects: a 3.27 billion rupee, 110-km Vadinar-to-Kandla line, to be owned by Petronet and Indian Oil Co. Ltd. 26% each. Essar Oil Ltd. and Reliance Petroleum Ltd. 13% each, and Infrastructure Leasing &...

Columbia Gulf Transmission Co.,.
December 1, 1997... Houston, is holding a 30-day open season for 214 MMcfd of additional capacity on its 2,400-mile Mainline '99, which extends from Louisiana to Mississippi, Tennessee, and Kentucky. The additional capacity will be available by December 1999....

Canada's National Energy Board.
December 1, 1997... Canada's National Energy Board began public hearings on an application by Trans Quebec & Maritimes Pipeline Inc. (TQM) to build a natural gas pipeline extension from Lachenaie, Que., to East Hereford, Que., on the U.S. border. The 132-mile,...

Koch Exploration Canada Ltd.,.
December 1, 1997... Calgary, is considering development options for oilsands leases in northern Alberta acquired from Solv-Ex Corp., Albuquerque. Koch, a unit of Koch Industries Inc., Wichita, acquired a 78% interest in 41,000 acres of leases with estimated...

Nigerian National Petroleum Co.
December 1, 1997... (NNPC) and Elf Petroleum Nigeria expect to begin production from their Ofon joint venture project off Nigeria in January. Initial production rate will be about 60,000 b/d, say the partners. The companies have installed a production platform...

Enron Oil & Gas India Ltd.
December 1, 1997... (EOG India) submitted a new development plan to partners in the Tapti gas field group. The plan calls for adding more drilling platforms, building a new gas processing platform, and constructing a 100-mile, 36-in. gas pipeline to Hazira. The...

The Mereenie joint venture.
December 1, 1997... (JV) signed a contract to supply an additional 62.8 bcf of gas to Gasgo Pty. Ltd., a subsidiary of Northern Territory Power & Water Authority (PAWA). Partners Santos Group (operator) and Magellan Petroleum Group have already committed 84.7 bcf to...

Chevron Corp.
December 1, 1997... Chevron Corp. approved a plan to nearly double the capacity of its newly commissioned associated gas utilization project, Escravos, in Nigeria. Current production of 130 MMcfd of gas, 8,000 b/d of natural gas liquids, and 2,000 b/d of condensate...

Amoco Corp.
December 1, 1997... Amoco Corp. will build the world's first solid-acid alkylation unit at its Yorktown, Va., refinery. The unit will use Haldor Topsoe AS's fixed-bed alkylation process. The two companies have been performing pilot tests and process design studies...

Shell U.K. Ltd.
December 1, 1997... Shell U.K. Ltd. let a so-called alliance core contract to Foster Wheeler Energy Ltd. (FWEL), Reading, U.K. Under the 3-year contract, FWEL will perform feasibility studies and provide front-end design, detailed design, engineering, procurement,...

Index useful for evaluating petroleum fiscal systems.
December 1, 1997... Daniel Johnston is an international petroleum consultant who started his consulting practice in 1985. He has worked in 33 countries during 17 years in the international sector of the Petroleum industry. He advises governments, oil companies, and...

NELSON-FARRAR COST INDEXES.
December 1, 1997... NELSON-FARRAR COST INDEXES Refinery construction (1946 Basis) (Explained on p. 145 of the Issue of Dec 30, 1985) 1962 1976 1994 Pumps, compressors, etc. ...

Malaysia's Peninsular Gas system gets another segment .
December 1, 1997... C.F. Savini is a director of Saipem (Malaysia) Sdn Bhd, and the newly formed Saipem Asia Sdn Bhd, with the responsibility of onshore operations. After receiving a degree in mechanical engineering from Instituto Tecnico Industriale Statate di...

Feed molecular properties explain cracking results.
December 1, 1997... Bruce A. Lerner is FCC and additives product manager in Engelhard's Petroleum Catalyst Group. Prior to this position, he was a member of the R&D section where he contributed to the design and development of resid cracking catalyst technology....

North German operator uses learning curve to improve horizontal drilling techniques.
December 1, 1997... Juergen Schamp a senior drilling engineer for Mobil Corp. He studied petroleum engineering at Technical University of Clausthal and Colorado School of Mines and received his MS and PhD from Clausthal University in 1985 and 1990, respectively....

Multiplex BOP system utilizes updated technology, decreases riser disconnect time .
December 1, 1997... Joseph R. Roche is a marketing services manager for Hydrill Co. in Houston. He joined the company in 1978. He has a BSME from the University of Illinois at Urbana/Champaign, graduating in 1966. Roche began deepwater engineering work in 1972 and...

Scada system monitors pipeline integrity.(from Solartron Inc.)
December 1, 1997... Plantwatch, a new addition to a portfolio of third party scada systems for isolated measurement pods, has been developed for round the clock surveillance and supervisory control of widely dispersed sites. The company says the system is suited...

Well stimulation pumps.
December 1, 1997... An 8 page brochure, yours free upon request, discusses well stimulation pumps offered by Gardner Denver Tulsa (formerly Twentieth Century Mfg. Co.). The brochure introduces the new GD 700, 1250, and 2250 lightweight stimulation pumps. It...

High temperature unit for downhole use.(from Honeywell)
December 1, 1997... The high temperature 32K x 8 Static RAM unit has been added to the line of Htmos electronic products. The HT6256 is designed specifically for use downhole in oil wells. It's also suited for turbine engine control, process control, and electric...

Subsea production system.(from Cameron)
December 1, 1997... The new modular subsea and integrated completion (Mosaic) production system combines design flexibility of custom equipment with cost saving advantages of preengineered, modular systems. Systems can be used for cluster wells or daisy chains....

MOVE AND PROMOTIONS.
December 1, 1997... Flint Engineering and Construction Co., Tulsa, Okla., has named Gary Whipple president and chief executive officer. Gary Foreman has been named executive vice president and chief operations officer. Whipple has spent the past 15 years as...

Schlumberger Oilfield Services and Coastal Management Corp.(to form energy services companies)
December 1, 1997... Schlumberger Oilfield Services and Coastal Management Corp. have signed a letter of intent to create an alliance of energy services companies. This new venture, in association with other industry service suppliers, will provide comprehensive...

M-I L.L.C.(acquires Fleming Oil Services)
December 1, 1997... M-I L.L.C., Houston, Tex., has acquired Fleming Oil Services, Ltd., including its primary operating division Reef Mud. Headquartered in Calgary, Alberta, the 22-year old company is a major supplier of drilling fluids products and services for the...

Aquatica, Inc.(acquires Acadiana Divers)
December 1, 1997... Aquatica, Inc. has acquired Acadiana Divers & Salvage, Inc. Aquatica, Inc. capabilities include inspection, repair, maintenance and construction services Aquatica, Inc. is an oil and gas service company providing diving and underwater...

Hydrates represent gas source, drilling hazard.
December 1, 1997... Elchin Bagirov has worked at the University of South Carolina since 1994 as a post-doctoral research associate. From 1989-94 he held the position of senior researcher is the geological institute at the Azerbaijan Academy of Science and worked at...

Bibliography.
December 1, 1997... Hand, J.H., Katz, D.L. and Verma, V.K., Review of Gas Hydrates with Implication for Ocean Sediments, in Natural Gases in Marine Sediments (ed. I.R. Kaplan), Plenum Press, New York, 1972, pp. 179-194. "Hot Ice," "Antenna" series of BBC-2,...

Ivory Coast.(petroleum industry)
December 1, 1997... Ranger Oil Ltd. may redevelop Espoir offshore field, where it believes 70 million bbl of oil and 200 bcf of gas can be recovered. A decision is due next year. Espoir produced 31 million bbl of oil at as much as 20,000 b/d until abandonment in...

Mozambique.(gas industry)
December 1, 1997... Scimitar Hydrocarbons Corp., Calgary, abandoned its Scimitar et al. Garabega-1 well on the Buzi-Divinhe Block. The company has now earned a 75% interest in the block. It said multiple high quality reservoir sands were encountered with gas shows...

Namibia.
December 1, 1997... Namcor made available more than 1,000 km of nonexclusive, infill seismic data acquired earlier this year west and south of Kudu offshore gas field. Gravity and magnetic data are also available. The seismic covers an area to be offered during...

New Zealand.(petroleum industry)
December 1, 1997... The Ministry of Commerce awarded the 2.8 million acre Permit 38256 to a group led by Indo-Pacific Energy Ltd., Vancouver, B.C. The block covers most of the onshore portion of the Canterbury basin along the east coast of the South Island....

Ukraine.(petroleum industry)
December 1, 1997... Independent consultants estimated proved and probable reserves at 23.4 million bbl for the Belolessky Block, said Odessa Petroleum Corp., Vancouver, B.C. The 900 sq km block is 140 km southwest of Odessa along the Black Sea coast. Odessa...

Gulf at Mexico.
December 1, 1997... Burlington Resources Oil & Gas Co. may start production by first quarter 1998 from High Island Block 38 off Texas. The No. 1 well, drilled to 11,689 ft, cut 200 ft of net pay in two hydrocarbon bearing sands and has been completed, said Houston...

California.(petroleum industry)
December 1, 1997... Windsor Energy Corp., Calgary, plans to drill and complete 4 more wells at Rincon Island off Ventura County. The 10 successful completions in 1997 have boosted sustained production to more than 3,000 b/d.

Mississippi.(petroleum industry)
December 1, 1997... Fina Oil & Chemical Co., Houston, staked a Cambro-Ordovician Knox outpost to one-well Maben field of Oktibbeha County. The 1 Sanders, in 27-19n-12e, is projected to 16,000 ft.

Montana.(petroleum industry)
December 1, 1997... K2 Energy Corp., Calgary, signed a 25 year agreement with the Blackfeet Indian Tribe to explore and develop 285,000 acres of tribal lands, much of it on the Disturbed Belt in northwestern Montana. K2 is required to drill at least 15 wells the...

Nevada.
December 1, 1997... Marshall Oil Co., Reno, was starting a wildcat in the Big Smokey Valley of nonproducing Esmeralda County. The 1 Jake, in 7-2n-39e, 25 miles west of Tonopah, is projected to 10,000 ft. The site is 120 miles west-southwest of oil fields in...

New Mexico.
December 1, 1997... Operators plugged two key wildcats in nonproducing basins. Burlington Resources Oil & Gas Co. went to 7,778 ft at the 1Y Westland Development Corp., in 21-10n-1e, Bernalillo County, 6 miles west of Albuquerque. Twining Drilling, Albuquerque,...

New York.
December 1, 1997... More drilling is planned to delineate and boost deliveries from a gas discovery in Steuben County. Columbia Natural Resources Inc., Charleston, W.Va., said five wells are producing into a 6 mile gathering line, delivering a combined 2 MMcfd...

Texas.
December 1, 1997... North Venoco Inc., Santa Barbara, Calif., completed a deeper pool discovery in Big Mineral Creek field in the Marietta-Sherman basin. The 44 Green, in Grayson County 5 1/2 miles northeast of Sadler, flowed 932 b/d of oil with 1.1 MMcfd of...

OGJ GASOLINE PRICES.
December 1, 1997... OGJ GASOLINE PRICES Price Pump ex tax [price.sup.*] 11-19-97 ...

REFINED PRODUCT PRICES.
December 1, 1997... REFINED PRODUCT PRICES 11-14-97 11-14-97 (cent/gal) (cent/gal) Spot market product prices ...

AGA NATURAL GAS[STORAGE.sup.*].
December 1, 1997... AGA NATURAL GAS[STORAGE.sup.*] 11-14-97 11-7-97 Change --(bcf)-- Producing region 717 748 -31 Consuming region east 1,666 1,695 -29 Consuming...

BAKER HUGHES RIG COUNT.
December 1, 1997... BAKER HUGHES RIG COUNT 11-21-97 11-22-96 Alabama 3 6 Alaska 9 8 Arkansas 8 7 California ...

SMITH RIG COUNT.
December 1, 1997... SMITH RIG COUNT 11-21-97 11-22-96 Proposed depth Rig % Rig % (ft) count [footage.sup.*] count [footage.sup.*] 0-2,500...

STATISTICS.
December 1, 1997... Editor's note: Due to an early deadline, API data was not available at presstime.

OGJ PRODUCTION REPORT.
December 1, 1997... OGJ PRODUCTION REPORT [11.21.97.sup.*] 11-22-96 (1,000 b/d) (Crude oil and lease condensate) Alabama ...

U.S. CRUDE PRICES.
December 1, 1997... U.S. CRUDE PRICES [($/bbl).sup.*] 11-21-97 Alaska-North Slope 270[degrees] 13.94 Cook Inlet (Drift River) 34[degrees] 13.80 California-Kern River 13[degrees] 14.00 ...

WORLD CRUDE PRICES.
December 1, 1997... WORLD CRUDE PRICES [($/bbl).sup.*] 11-14-97 United Kingdom-Brent 38[degrees] 19.59 U.S.S.R.-Export blend 32[degrees] 19.49 Saudi light 34[degrees] 19.03 Dubai Fateh...

PACE REFINING MARGINS.
December 1, 1997... PACE REFINING MARGINS Sept Oct. Nov. Nov. % 1997 1997 1997 1999 Change change $/bbl U.S. Gulf Coast West Texas Sour ...

U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.
December 1, 1997... U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD Aug- Total Aug. July Aug. change --YTD-- 1997 1997 1996 1997-1996 1997...

WORLDWIDE NGL PRODUCTION.
December 1, 1997... WORLDWIDE NGL PRODUCTION 8 month Chg. vs. average Previous -Production- Year ...

OXYGENATES.
December 1, 1997... OXYGENATES Sept. Aug. YTD YTD 1997 1997 Change 1997 1996 Change 1,000 bbl Fuel ethanol Production 2,393 2,483 -90 21,746...

U.S. COOLING DEGREE[DAYS.SUP.*].
December 1, 1997... U.S. COOLING DEGREE[DAYS.SUP.*] 1997% change Sept. Sept from 1997 1996 Normal normal...