The Oil and Gas Journal articles from January 2000

The Oil and Gas Journal archives from January 2000

OGJ Newsletter.
January 3, 2000... McMoRan Exploration and Texaco have inked an agreement that illustrates the shift in upstream-sector focus taking place among majors and independents. The deal gives McMoRan the right to explore all or parts of Texaco's 90 tracts on the US...

LETTERS.(Letter to the Editor)
January 3, 2000... E&P investment It is just remarkable to see OGJ spent 7 pages on Colombia and its new plans for attracting E&P investment (OGJ, Nov. 29, 1999, pp. 18-25). We like it, and I hope this becomes a tradition for "new millenium" where OGJ would...

Oily governors.
January 3, 2000... Normally, when you think of an oilman who has become the chief executive of his state, you think of Texas Gov. George W. Bush, who was an independent operator in Midland, Tex., for several years. And, of course, his father was a drilling...

The Russian election.
January 3, 2000... The certain good news from Russia for the oil and gas industry is that the Communist Party no longer controls legislation in the Duma, or lower house of parliament. The rest remains a muddle. It's worth cheering that 60% of the Russian...

Restructuring of China's oil industry continues as doubts regarding its success loom.
January 3, 2000... FACTS Inc. Honolulu This article is based on an advisory issued by Fesharaki Associates Consulting & Technical Services Inc. (FACTS Inc.), a consulting group directed by Fereidun Fesharaki. Reform of the Chinese oil industry has...

Duke, Phillips to form midstream gas firm.
January 3, 2000... Duke Energy Corp., Charlotte, NC, and Phillips Petroleum Co., Bartlesville, Okla., have reached a definitive agreement to merge Duke's gas gathering and processing business--Duke Energy Field Services (DEFS)--with Phillips's gas processing and...

Drilling fluids JV to continue.
January 3, 2000... The US Department of Justice said Smith International Inc. and Schlumberger Ltd. have agreed to a $13.1 million settlement that will enable them to continue operating a drilling fluids joint venture. DOJ said the deal marks the first time...

Tyumen to transfer key subsidiary to Sidanko.
January 3, 2000... The Clinton administration has blocked $498 million in US Export-Import Bank loan guarantees for Russia's Tyumen Oil Co. Tyumen--half-owned by the Russian government--bought Chernogorneft, a former Sidanko subsidiary, for $176 million at a...

EPA issues rule limiting US gasoline sulfur.
January 3, 2000... Despite the objections of refiners, the US Environmental Protection Agency has issued a final rule that will require the industry to slash the sulfur content of gasoline from an average of 300 ppm (excluding California) to 30 ppm. ...

Australia refiners seek mergers, reevaluate gasoline sulfur rule.
January 3, 2000... Australia has officially acknowledged the financial plight of the country's refining industry with the release in December of the Downstream Petroleum Products Action Agenda. Issued by the federal resources minister, Sen. Nick Minchin the...

Petrobras inks exploration JVs off Brazil.(Brief Article)
January 3, 2000... Brazilian firm Petroleo Brasileiro SA has signed two more joint-venture agreements for exploration of license blocks off Brazil. The latest JVs are with groups led by BP Amoco PLC and Royal Dutch/Shell. Announcements of signed agreements...

UPR makes gas find in S. Louisiana.(Union Pacific Resources Group)(Brief Article)
January 3, 2000... Union Pacific Resources Group Inc. (UPR), Fort Worth, and partner Cabot Oil & Gas Corp., Houston, have made a gas discovery on the Etouffee prospect with their Continental Land & Fur Co. Inc. 1 well (CLF 1), about 15 miles southeast of Morgan...

US reserves values up, deal action flat.(Brief Article)
January 3, 2000... The value of US reserves involved in oil and gas transactions rose in the third quarter of 1999, even though the number of transactions remained relatively flat vs. second quarter. This was among the findings of Cornerstone Ventures LP,...

Chem board back on track.(US Chemical Safety and Hazard Investigation Board)(Brief Article)
January 3, 2000... Expectations were high for the US Chemical Safety and Hazard Investigation Board at its inception 2 years ago. Modeled after the independent National Transportation Safety Board, the agency was created to discover the causes of chemical...

A Canadian moratorium.(Brief Article)
January 3, 2000... A Canadian moratorium on oil and gas exploration on the Georges Bank off Nova Scotia has been extended until yearend 2012. Ottawa and the provincial government said the area is one of the most productive fishing grounds in the world. The...

Swift Energy.(Brief Article)
January 3, 2000... Swift Energy unit Swift Energy New Zealand Ltd. and partners completed production tests on Rimu-A1 discovery well in the Taranaki basin along New Zealand's North Island west coast. The well flowed 1,525 b/d of 44[degrees] gravity oil and 4.8...

Santa Fe Energy Resources of Gabon (Agali) Ltd.(Brief Article)
January 3, 2000... Santa Fe Energy Resources of Gabon (Agali) Ltd., a unit of Santa Fe Snyder Corp., Houston, signed a production-sharing contract covering the 4,100 sq km Agali exploration block in 200-2,500 m of water off Gabon's northern coast. Santa Fe...

Kerr-McGee Carp.(Brief Article)
January 3, 2000... Kerr-McGee Carp. and Pendaries Petroleum Ltd. found oil on Block 04/36 in China's Bohai Bay. The company tested five zones in a well that logged more than 280 ft of oil pay. The discovery well, drilled to 4,789 ft, is on a large four-way dip...

Dow Chemical Co.(Brief Article)
January 3, 2000... Dow Chemical Co., Midland, Mich., exercised a warrant to acquire 15.15 million shares of Schlumberger Ltd., Paris, for $450 million. Dow received the warrant as part of a 1993 transaction through which Schlumberger acquired Dow's 50% share of...

Australia Gas Light Co.
January 3, 2000... Australia Gas Light Co. (AGL), Sydney, will acquire from TransCanada PipeLines Ltd., Calgary, its 25.48% interest in the East Australian Pipeline Ltd. natural gas pipeline system in New South Wales for about $110 million (Can.). The sale is...

AGL.(Brief Article)
January 3, 2000... AGL will spin off its regulated pipeline business into the $1.2 billion (Aus.) Australian Pipeline Trust. The trust will own 6,800 km of AGL's natural gas transmission pipelines throughout Australia and will release $500 million of capital for...

Veba Oel AG.
January 3, 2000... Veba Oel AG will acquire Mobil Oil AG's 28% interest in Aral AG, one of Germany's largest service station operators. The sale satisfies conditions required by the European Commission for approval of the Exxon-Mobil merger (OGJ, Oct. 25,1999, p....

Kinder Morgan Energy Partners LP.
January 3, 2000... Kinder Morgan Energy Partners LP (KMP) will acquire certain assets totaling $700 million from Kinder Morgan Inc., Houston, in exchange for 9.81 million KMP common units and about $330 million. These assets include: the Kinder Morgan interstate...

Pluspetrol Peru Corp.
January 3, 2000... Pluspetrol Peru Corp., the Peruvian unit of Pluspetrol Resources Corp., will acquire Occidental Petroleum Corp.'s 100% interest in Block 1-AB in Peru. Oxy, however, will retain interests in Peruvian Blocks Z-3 and 64, it said.

The Angolan government.
January 3, 2000... The Angolan government let contract to Technip SA, Paris, to conduct a feasibility study for a grassroots refinery to be built in Benguela province, possibly at Lobito. The plant, to be developed in several stages, would have ultimate capacity...

Total Offshore Production Systems [TOPS].
January 3, 2000... Total Offshore Production Systems (TOPS), a joint venture of R&B Falcon and Intex Engineering Inc., completed installation of what it claims as the world's first 15,000 psi subsea production system, in 880 ft of water on Green Canyon Block 20...

Norsk Hydro AS.
January 3, 2000... Norsk Hydro AS and partners plan to spend 15 billion kroner to develop Grane field off Norway (OGJ, Sept. 6, 1999, p. 30). Grane, expected to reach production of 214,000 b/d of oil in 2005 from 26 wells, is on Blocks 25/8 and 25/11 in the...

Mobil Produccion e Industrializacion de Venezuela Inc.
January 3, 2000... Mobil Produccion e Industrializacion de Venezuela Inc., a unit of ExxonMobil Corp., began initial production of 60,000 b/d of diluted extra-heavy crude oil from the Cerro Negro integrated heavy oil project in Venezuela's Orinoco oil belt (OGJ,...

Ocelot International Ltd.(Company Business and Marketing)(Brief Article)
January 3, 2000... Ocelot International Ltd. will spend an estimated $8.5 million to drill two development wells in Obangue field to increase oil production in Gabon. Ocelot expects to spud the first well this month. Obangue currently can produce 600 b/d;...

Vastar Resources Inc.,.
January 3, 2000... Vastar Resources Inc., Houston, completed an appraisal well in Horn Mountain oil field on Mississippi Canyon Blocks 126 and 127 in 5,418 ft of water in the Gulf of Mexico. The appraisal follows a discovery well that cut 285 ft of net pay in the...

Swift Energy Co.,.(Brief Article)
January 3, 2000... Swift Energy Co., Houston, tested an Austin chalk development well in Masters Creek field in Rapides Parish, La. Swenco 18-1 well flowed 2,400 b/d of oil and 10.3 MMcfd of gas through a 26/64-in. choke with 6,900 psi tubing pressure. Swift, as...

ExxonMobil Corp.(Brief Article)
January 3, 2000... ExxonMobil Corp. unit Esso Exploration & Production Nigeria Ltd. tested a step-out to a 1999 deepwater oil and gas discovery on Nigerian Block 209, about 100 miles southeast of Lagos. The discovery well, Erha-1, was completed in February 1999....

Harrods Energy (Thailand) Ltd.(Brief Article)
January 3, 2000... Harrods Energy (Thailand) Ltd. drilled three successful delineation wells following its oil discovery on Block B5/27 in about 61 m of water in the Gulf of Thailand (OGJ, July 19, 1999, p. 82). On test, discovery well B5/27-3 flowed 1,096 b/d of...

Mobil Exploration & Producing Australia Ply. Ltd.(Brief Article)
January 3, 2000... Mobil Exploration & Producing Australia Ply. Ltd. and its partners drilled another successful step-out to its Woollybutt oil strike on the North West Shelf off Western Australia. The 3 Woollybutt, drilled 7.5 km south of 1 Woollybutt, cut oil...

Phillips Investment Co.,.(Brief Article)
January 3, 2000... Phillips Investment Co., a unit of Phillips Petroleum Co., formed a joint venture with South Korea's Daelim Industrial Co. Ltd. to produce Phillips's proprietary K-resin styrene-butadiene copolymer (SBC). The JV, to be owned 60-40,...

CXY Chemicals.(Brief Article)
January 3, 2000... CXY Chemicals, a unit of Canadian Occidental Petroleum Ltd., Calgary, bought two Brazilian chemical plants from Aracruz Cellulose SA. The plants, a 35,500-tonne/year sodium chlorate unit and a 35,000-tonne/year chlor-alkali unit--adjoin an...

Dynegy Inc.(Brief Article)
January 3, 2000... Dynegy Inc., Houston, plans to build a 500-Mw natural gas-fired peaking power plant in Osceola County, Fla., about 30 miles southeast of Orlando. Dynegy will use gas from the Florida Gas Transmission pipeline to generate power, which it will...

Kazakhstan.(Brief Article)
January 3, 2000... Kazakhstan signed an amendment to the final production-sharing agreement with Karachaganak field partners ENI SPA, BG International, Texaco Inc., and Lukoil for construction of a 460-km pipeline from Bolshoy-Chagan to Atyrau, Kazakhstan. In...

Canada's National Energy Board.(Brief Article)
January 3, 2000... Canada's National Energy Board gave final approval to Maritimes & Northeast Pipeline Management Ltd. to operate a pipeline to deliver natural gas from the Sable Island region off Nova Scotia to Atlantic Canada and New England. The board said...

Enron North America Corp.(Brief Article)
January 3, 2000... Enron North America Corp. signed a contract for about 1.2 bcfd of firm interstate capacity on El Paso Natural Gas Co.'s system for 1 year for $38 million. The capacity--held most recently for a 2-year contract by Dynegy--makes up the larger...

US crude reserves plunged 7% in 1998.
January 3, 2000... The US Energy Information Administration reports proved reserves of US crude oil fell 7% in 1998, the largest percentage decline in over 50 years. Crude reserves were 21.03 billion bbl, down 1.5 billion from the end of 1997. An EIA study...

FCC catalyst properties can affect cyclone erosion.
January 3, 2000... Physical properties of fluid catalytic cracking unit (FCCU) catalysts, such as attrition resistance, density, and particle-size distribution, have varying effects on expected cyclone-erosion rates. Although velocity affects erosion more...

CORRECTION.(Correction Notice)
January 3, 2000... An error appeared in the article "Electronic device useful for accurate measurements" by David A. Phelps (OGJ, Nov. 29, 1999, pp. 51-53). The source for Figs. 1 and 3 is William V. Cardwell, Hicad America, Houston. Fig. 3 used the...

Design, equipment changes make possible high [C.sub.3] recovery.
January 3, 2000... Recent advances in the process design of cryogenic gas-processing plants and in their equipment have led to development of a high NGL-recovery process flowsheet that can cost-effectively yield propane recoveries of up to 99%. The flowsheet...

NELSON-FARRAR COST INDEXES.
January 3, 2000... NELSON-FARRAR COST INDEXES Refinery construction (1946 Basis) (Explained on p. 145 of the Issue of Dec. 30, 1985) Sept....

Method measures commingled production, pipeline components.
January 3, 2000... An analytic method discriminates and quantifies the constituent cuts in commingled reservoir production and pipeline streams. It uses Fourier transform infrared spectrometry (FT-IR) on crude oils and works even if the constituents exhibit...

System provides new approach for directional drilling.
January 3, 2000... In collaboration with Japan National Oil Corp., Sperry-Sun, Houston, has designed a completely new approach for rotary steerable drilling. Using point-the-bit technology, the assembly steers the wellbore in any desired direction while...

Yearly refinery construction indexes listed for 72 years.
January 3, 2000... Here are yearly values for the Nelson-Farrar refinery inflation cost index since 1926. They are based on 1946 as 100, since that was the date of index inception. Values from 1926 to 1945 were back calculated. ...

New gas detection system.(Brief Article)
January 3, 2000... A new multipoint gas detection system consists of an 8, 16, or 32-point gas-stream selector offering parallel purging of all unsettled lines for rapid response together with a dead volume of only 7.4 ml. The system gives full control over...

Pipe stress analysis software has subsea capability.(Brief Article)
January 3, 2000... Caesar II pipe stress analysis software now has subsea capability. This addition to the software helps suit it for any company involved with subsea piping. Caesar II can take into account the effect of waves and currents on the pipe in its...

Control system for ultradeep water.
January 3, 2000... The EXpress System is an electrohydraulical control system designed to provide emergency shut-in and disconnection of landing strings utilized during subsea completion or well testing operations. Utilizing field-proved components and providing...

Safety relief valve.
January 3, 2000... A new pilot operated safety relief valve is a seminozzle, soft seat type. The 7800 Series product line has been designed to meet the current API 526 standard and is specifically aimed at natural gas operations. It has also gained American...

New ball valves.(Brief Article)
January 3, 2000... These new ball valves offer NACE trim and fire-safe certification as standard features in a broad line of API 6D trunnion-mounted styles. Valves are suited for service in a range of uses. Size ranges are 2-72 in. with rated pressures of...

Free gate valve catalog.(Brief Article)
January 3, 2000... A new catalog, yours free for the request, spotlights a line of ceramic and stainless steel gate valves. Information discusses OS and Y and HP designs in 150-1,500 lb classes. The catalog includes illustrated parts and a material selection...

MOVES AND PROMOTIONS.
January 3, 2000... Ryder Scott Co. LP, Houston, Tex., has named Dr. Grant Robertson as a petroleum engineer. He specializes in reservoir simulation and integrated studies. Previously, Robertson was a manager and team leader at BP Exploration Inc. for 10 years....

Several areas of Pakistan could hold giant fields.
January 3, 2000... Only two giant gas fields--Sui and Mari(?)--have been discovered in Pakistan's 130-year checkered history of petroleum exploration. A few oil fields, such as Meyal and Dhurnal, seemed to be candidates for awhile but soon lost the race. ...

Algeria.
January 3, 2000... An ARCO group is drilling Semhari East-1 on the 788,000 acre Hassi Bir Rekaiz block in the northern Ghadames basin 60 miles northeast of giant Rhourde el Baguel oil field. Projected TD is 3,800 m. The drillsite is 20 km east of the group's...

Azerbaijan.
January 3, 2000... Puma Energy Inc., Dallas, signed a memorandum of understanding to rehabilitate, explore, develop, and produce a block that contains Siazan oil field. The company on Nov. 19 signed another agreement to develop Balakhani, Sabunchi, and Ramani oil...

Nicaragua.
January 3, 2000... Fugro-Geoteam AS and Fugro-LCT acquired 3,097 line km of spec 2D reconnaissance seismic data plus gravity and magnetic data on the Caribbean shelf between shore and 82[degrees] W. Long. The data, first acquired in the area for 20 years,...

Portugal.
January 3, 2000... Mohave Oil & Gas Corp., Houston, planned to have spud the Aijubarrota-3 appraisal well in the Lusitanian basin by yearend 1999. Projected to 3,000 m, the well was to be drilled underbalanced with a compressed air system to alleviate...

Gulf of Mexico.
January 3, 2000... A group led by PetroQuest Energy Inc., Lafayette, La., was considering development options for an oil and gas discovery on its Falcon prospect in Vermilion Block 376. Logs showed 285 ft of gross hydrocarbon column (136 ft net) in six...

Mississippi.
January 3, 2000... Fina Oil & Chemical Co., Houston, tested another well in Maben field in northeastern Mississippi (see map, OGJ, Dec. 21, 1998, p. 108). Fina's 2 Richardson, in 34-19n-12e, Oktibbeha County, flowed 3.3 MMcfd of gas on a 12/64 in. choke with...

New Mexico.
January 3, 2000... Queen Sand Resources Inc., Dallas, launched redevelopment of a 640-acre tract in giant Caprock field, Lea and Chaves counties, where it controls 14,000 contiguous acres in the 26,000-acre field and has performed extensive remedial work. ...

Tennessee.
January 3, 2000... Tengasco Inc., Knoxville, sped up its drilling program in Swan Creek field, Hancock County, with a planned four development wells to have spudded during December 1999. The program also included an exploratory test, 1 Springdale Land Co.,...

Texas.
January 3, 2000... North Mitchell Energy & Development Corp. was adding a fifth rig in December 1999 to its program to produce gas from Mississippian Barnett shale in the Fort Worth basin. Net gas production there rose during summer to more than 90 MMcfd...

PERSONALS.
January 3, 2000... Charles Stephenson has formed Bravo Natural Resources Inc., Tulsa. He will served as the company's president and CEO. Bravo will focus its activities on the Midcontinent and East Texas. Before forming Bravo, Stephenson served as...

OGJ GASOLINE PRICES.
January 3, 2000... OGJ GASOLINE PRICES Price Pump Pump ex tax price [*] price 12-22-99 12-22-99...

REFINED PRODUCT PRICES.
January 3, 2000... REFINED PRODUCT PRICES 12-17-99 ([cent]/gal) Spot market product prices Motor gasoline (conventional-regular) New York Harbor ...

AGA NATURAL GAS STORAGE [*].
January 3, 2000... AGA NATURAL GAS STORAGE [*] 12-17-99 12-10-99 Change (bcf) Producing region 789 815 -26 Consuming region east 1,546 1,621 -75 Consuming...

BAKER HUGHES RIG COUNT.
January 3, 2000... BAKER HUGHES RIG COUNT 12-24-99 12-25-98 Alabama 5 5 Alaska 5 13 Arkansas 1 2 California 21 ...

SMITH RIG COUNT.
January 3, 2000... SMITH RIG COUNT 12-24-99 12-25-98 Proposed depth Rig % Rig % (ft) count footage [*] count footage [*] 0-2,500 17 5.8 ...

OGJ PRODUCTION REPORT.
January 3, 2000... OGJ PRODUCTION REPORT 12-24-99 [1] 12-25-98 [2] (1,000 b/d) (Crude oil and lease condensate) Alabama 33 32 Alaska 1,106 ...

U.S. CRUDE PRICES.
January 3, 2000... U.S. CRUDE PRICES ($/bbl) [*] 12-24-99 Alaska-North Slope 27[degrees] 17.28 Southern Louisiana Light 25.00 California-Kern River 13[degrees] 20.00 Lost Hills...

WORLD CRUDE PRICES.
January 3, 2000... WORLD CRUDE PRICES ($/bb1) [1] 12-17-99 United Kingdom-Brent 38[degrees] 26.31 U.S.S.R-Export blend 32[degrees] 25.92 Saudi light 34[degrees] 23.95...

PACE REFINING MARGINS.
January 3, 2000... PACE REFINING MARGINS Oct. Nov. Dec. Dec. % 1999 1999 1999 1998 Change change $/bbl U.S. Gulf Coast West Texas Sour 1.94...

U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.
January 3, 2000... U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD Sept. Total YTD Sept. Aug. Sept. change YTD change ...

U.S. HEATING DEGREE DAYS [1].
January 3, 2000... U.S. HEATING DEGREE DAYS [1] 1999% change Total degree days Oct. Oct. from July 1 through Oct. 31 ...

WORLDWIDE NGL PRODUCTION.
January 3, 2000... WORLDWIDE NGL PRODUCTION 9 month Chg. vs. average previous Sept. Aug. Production year...

OXYGENATES.
January 3, 2000... OXYGENATES Oct. Sept. YTD YTD 1999 1999 Change 1999 1998 Change 1,000 bbl Fuel ethanol Production 3,272 2,917 355 28,941 27,011...

Newsletter.
January 10, 2000... Global oil markets dipped slightly just before the end of the year in response to news that OPEC had stepped up production to prepare for possible supply problems associated with the Year 2000 computer bug. OPEC compliance with pledged...

Connections.
January 10, 2000... A US Public Television series not long ago showed how small discoveries or insignificant events from history have led to current achievements and inventions. The program was entitled "Connections." In each segment, it was fascinating to...

A test case on trade.
January 10, 2000... A question crucial to the worldwide oil and gas industry will receive an unusually thorough appraisal in US politics this year. Congress will address the question during the year's first half. And candidates for the US presidency will define...

China accelerates shift in energy policy, restructuring of state petroleum firms.
January 10, 2000... China's energy policy has gone through major changes in the last a few years, from a strategy based onn self-reliance to one of aggressively seeking oil and gas supplies abroad. This shift has led to a number of strategic changes in the...

Decontrol in Eastern Europe.
January 10, 2000... Former Communist nations in East em Europe continue to make progress toward privatized energy industries and free markets. In Hungary, the government has sold all but 25% of the oil and gas conglomerate MOL Rt. Government privatization...