The Oil and Gas Journal articles from June 1998

The Oil and Gas Journal archives from June 1998

OGJ Newsletter.(multiple brief articles)
June 1, 1998... Low oil prices and Russia's escalating economic crisis are bringing the country's boom in oil mergers and acquisitions to a screeching halt. The $2.1 billion sale of a controlling stake in Rosneft, Russia's last great oil property still in...

It's still a muddy-boots day.
June 1, 1998... Economics and Exploration The best times at the Oil & Gas Journal are what some old-timers call muddy-boots days. You take off your tie, put on steel-toed boots and a hard hat, leave the office, and visit a rig in West Texas or northern...

It's a brainpower business.
June 1, 1998... The organization and economics of the world petroleum industry changed in so many ways during the past decade that it's easy to overlook an important evolution only now becoming apparent: The panic threshold has risen by several notches. Last...

Cross Timbers' acquisition strategy underpins explosive rate of growth.(Cross Timbers Oil Co.)
June 1, 1998... Cross Timbers Oil Co. has successfully implemented a 5-year, aggressive growth strategy that has converted it from a small independent exploration and development firm to a solid, mid-sized independent. The Fort Worth-based company's strategy...

U.S. E&P key indicators up sharply in 1997.(exploration and production)
June 1, 1998... The upswing in the U.S. exploration and production sector continued to register strongly in 1997, as shown by a number of key indicators. Total U.S. upstream expenditures of the top 49 U.S. oil and gas companies, including acquisitions of...

E&D action off eastern Canada heating up.(exploration and development)
June 1, 1998... Exploration and development activity off Nova Scotia and Newfoundland is continuing apace. Recent developments include the information of an exploration joint venture for a sizeable area of the Scotian Shelf and the acquisition of a farm-out...

Azeri development drilling programs progress.
June 1, 1998... Azerbaijan is seeking to increase oil production from its Caspian Sea fields by extending development drilling in producing fields. State Oil Co. of the Azerbaijan Republic (Socar) is seeking foreign firms to participate in rehabilitation...

Trinidad and Tobago's gas focus.
June 1, 1998... When world petroleum prices slumped early this year, it created difficulties for many oil producing countries heavily dependent on crude oil exports. But the Caribbean nation of Trinidad and Tobago was hurt little because it has aggressively...

AGA sees lull replacement of gas reserves.(American Gas Assn)
June 1, 1998... The American Gas Association reports U.S. additions to proved gas reserves during 1997 are expected to be 96-120% of production. Chris McGill, AGA gas supply and statistics director, said, "This indication of strong 1997 reserves replacement...

Pena asks NPC to examine gas supply, demand.(National Petroleum Council)
June 1, 1998... U.S. Energy Sec. Federico Pena has asked the National Petroleum Council, his petroleum industry advisory committee, to update its 1992 study on natural gas and report back next year. Pena said the U.S. gas industry is debating whether there...

EIA says U.S. gas pipeline grid has grown 15%.(Energy Information Administration)
June 1, 1998... The U.S. pipeline industry's capacity to move gas from region to region reached a record of more than 84 bcfd in 1997, up 15% from the installed capacity reported in 1990. An Energy Information Administration report said that, by 1996, gas...

Papua New Guinsa-Aussie line progresses.
June 1, 1998... The Chevron Services Australia group, operator of the Papua New Guinea Gas Project, has selected a combine of Australian Gas Light and Malaysian state oil firm Petronas to build, own, and operate the Australian section of the proposed Papua New...

New uses needed to absorb C4 olefins glut.
June 1, 1998... Despite significant growth in demand for C4 olefins in the coming years, increased supplies from ethylene plants will likely create a market glut, says Chem Systems Inc., Tarrytown, N.Y Creative schemes for integrating C4 olefin use in refinery...

Shell U.K., with warts and all.
June 1, 1998... Shell UK. Ltd. published its first Report to Society on May 21, following the lead of the overlords at Royal Dutch/Shell (OGJ, May 4, 1998, p. 54). The report is a direct response by Shell U.K. to the public criticism the company has met over...

Gas distribution.
June 1, 1998... Sharjah Power & Water Authority, Sharjah, U.A.E., started work on a $70 million gas distribution network. To be completed in 2 years, the first phase will cost $40 million and will supply 25,000 consumers.

Gas marketing.
June 1, 1998... City of Richmond, Va., let contract to NGC Corp., Houston, for management of its natural gas supply, transportation, and storage. Under terms of the full-service contract, NGC will manage more than 200 MMcfd of firm transportation capacity and...

LNG.(Qatar Liquefied Gas Co.)
June 1, 1998... Qatar Liquefied Gas Co. (QatarGas) completed construction of its third LNG production unit 6 months ahead of schedule. The 2 million metric ton/year unit brings total capacity at the North field site to 6 million tons/year (OGJ, Apr. 27, 1998,...

Pipelines.
June 1, 1998... Duke Energy Transport & Trading Co., Oklahoma City, purchased the assets and related marketing business of Mesa Pipe Line Co., Houston. The assets include 325 miles of pipeline in three Texas gathering systems near Midland, Snyder, and...

Exploration.
June 1, 1998... Elf Exploration U.K. plc and Phillips Petroleum Co. U.K. Ltd. agreed to jointly evaluate prospective areas in disputed waters between the Faroe Islands and the U.K. The so-called White Zone has been under discussion between the U.K. and Denmark...

Refining.
June 1, 1998... Valero Energy Corp., San Antonio, signed a letter of intent to acquire Mobil Oil Corp.'s 155,000 b/d refinery at Paulsboro, N.J., for $228 million plus $108 million for inventories and working capital. Valero will supply Mobil with fuels and...

Companies.
June 1, 1998... Canadian Forest Oil Canada Ltd., Calgary, will acquire Unocal Canada Ltd's assets in the Canadian arctic and off Canada's west coast. The properties include: a 35% interest in a recent P-66 natural gas discovery near Fort Liard, N.W.T.; more than...

Coalbed methane.
June 1, 1998... Hallwood Energy Partners LP(HEP) and Hallwood Consolidated Resources Corp. (HCRC), both of Denver, will pay $34.5 million for a volumetric production payment in 34 coalbed methane wells in La Plata County, Cob., to an affiliate of Enron Corp. HEP...

IMMERSIVE VISUALIZATION PROVIDES AN INSIDER'S VIEW OF SUBSURFACE.
June 1, 1998... ARCO Exploration & Production Technology is applying products of in-house visualization research to real-world seismic interpretation. At the company's Immersive Visualization Environment (IVE) in Piano, Tex., earth scientists, engineers, and...

TEXACO E&P CENTER ALLOWS VISUAL PROBE OF 3D DATA VOLUMES.
June 1, 1998... Texaco Exploration & Production is refining its large-screen, interactive visualization center in Houston to allow engineers and earth scientists to course ever more-easily through 3D volumes of subsurface data. With a hand mouse, users move a...

TECHNOLOGY ALLIANCE IMPROVES 3D SEISMIC SURVEY DESIGN IN EGYPT'S WESTERN DESERT.
June 1, 1998... Mike Bahorich is vice-president, exploration technology, of Apache Corp. He holds a BS in geology from the University of Missouri and an MS in geophysics from Virginia Polytechnic Institute. He joined Apache as chief geophysicist in 1996 after...

Alyeska remedies TAPS' pipeline vibrations at Thompson Pass.
June 1, 1998... Dave Norton is a consultant to Alyeska Pipeline Service Co., Anchorage. He began as a field engineer on TransAlaska Pipeline during its construction in 1974. He has also been manager of engineering, project manager, and technical standards team...

Aluminium-floating roofs can achieve longer lives with improved design.
June 1, 1998... Users have many reasons for selecting various aluminum and steel floating-roof designs for aboveground storage tanks (AST). The American Petroleum Institute (API) 650 standard defines a minimum quality which permits users to select the...

Multiphase standardized pumping system.
June 1, 1998... This new multiphase standardized pumping system offers full system responsibility. In addition, the firm introduces standardized multiphase pumping systems covering capacities of 2,000-80,000 bpde (combined barrels per day equivalent of oil,...

Production thermometer covered In free catalog.
June 1, 1998... A new catalog, free upon request, covers the Model 9100 thermocouple type, hand held, water resistant, digital thermometer for single probe with standard type K, J, or T. It has a case mounted 3 ft extension handle and self-contained probe. More...

Applications handbook for oil and gas operations.
June 1, 1998... A new handbook assists engineers and instrumentation personnel in the design of cost effective measurement and controls systems. It contains control automation applications that demonstrate the specific use of pressure, level, temperature, and...

Gaffney, Clime & Associates'.
June 1, 1998... Gaffney, Clime & Associates' (GCA) Singapore office has named Rhonda J. May senior consultant. She worked for ARCO for over 15 years, where she conducted exploration and development new venture evaluations for projects throughout the Asia Pacific...

Fisher Controls International, Inc. Y10
June 1, 1998... Fisher Controls International, Inc., Marshalltown, Iowa, has named Robert D. Baker director, North America sales development. Baker will work closely with the organization's North American sales representative network to enhance the delivery of...

Aquatica, Inc.
June 1, 1998... Aquatica, Inc., Lafayette, La., has announced the completion of their official name change from Acadiana Diving, Inc. Aquatica, a newly formed offshore and underwater service company, acquired Acadiana Diving in October 1997 and has continued...

Welker Engineering Co.
June 1, 1998... Welker Engineering Co. has spun off its Flow Measurement Div. The new company is called Welker Flow Measurement Systems, Inc. It specializes in the design and fabrication of liquid and gas hydrocarbon measurement systems for custody transfer....

Russians to seek exploration in difficult Far East basins.
June 1, 1998... Local governments and associations in Russia hope to encourage exploration interest in lightly explored, mostly nonproducing offshore basins in the Far East. Adjacent onshore areas have experienced recurring shortages of natural gas and...

Service vessels have survey and seismic roles.
June 1, 1998... Fugro-Geoteam of Norway acquired two more vessels to conduct offshore surveys. The 245 ft Jean Charcot (at right) will carry out deepwater surveys in support of offshore oil and gas development, route surveys for fiber optic communications...

Gas production increase on horizon in Moldova.
June 1, 1998... Gas and oil drilling are increasing slowly in the eastern European republic of MoldoVa. A combine of Costilla Energy Inc., Midland, Tex., and Redeco Energy Inc., Calgary, is drilling the first of two wells planned this spring in idle Valeni...

Nova Scotia awards blocks, eyes border talks.
June 1, 1998... The Canadian provinces of Nova Scotia and Newfoundland will negotiate to resolve a boundary dispute involving a prime prospective area off Canada's East Coast. Both provinces claim jurisdiction over the Laurentian sub-basin covering more than...

Morocco.
June 1, 1998... Geologists have formed the Moroccan Association of Petroleum Geologists, headquartered in Rabat and affiliated with the American Association of Petroleum Geologists.

Pakistan.
June 1, 1998... The government granted petroleum exploration licences to the joint venture Union Texas Pakistan Inc. (UTP) and Government Holdings covering the Zindapir Block No. 3070-7 and Nauroz Kalat Block No. 2765-1. The blocks cover 844 sq km and 7,475 sq...

Gulf of Mexico.
June 1, 1998... A discovery well on West Cameron Block 170 is being completed, having logged more than 150 ft of natural gas pay in eight sands. Interests in the No. 2 sidetrack well, drilled to 15,812 ft MD and 15,440 ft TVD, are CXY Energy Offshore Inc.,...

Kentucky.
June 1, 1998... Queen Sand Resources Inc., Dallas, plans a multiwell program later this year in the Illinois basin Devonian New Albany shale gas play. It paid Riata Energy, Amarillo, and Four Sevens Oil Co. et al., Fort Worth, about $2.1 million in stock and...

Montana.
June 1, 1998... Samedan Oil Corp. completed a zone discovery adjacent to East Burget field in the Williston basin. The 21-21H Krogedal, on an 1,800 acre prospect in Roosevelt County, made 600 b/d of oil with 330 Mcfd of gas from dual laterals in Devonian...

Nevada.
June 1, 1998... Foreland Corp., Lakewood, Colo., said a well in Railroad Valley located on the basis of 3D seismic data appears to be a heavy oil discovery. The 88-35 Sand Dune, in 36-9n-57e, Nye County, recovered asphaltic, 25.40 gravity crude on a drillstem...

Texas.
June 1, 1998... East Anadarko Petroleum Corp., Houston, said it owns more than 16,000 acres in the Bossier sand play in East Texas and that Dew field is the operator's third largest onshore gas field. The 2A Johnson, an April completion in Freestone County,...

West Virginia.
June 1, 1998... Cabot Oil & Gas Corp. Houston, plans more drilling to Devonian Oriskany and significant seismic program this summer along the Eastern Overthrust belt. The 1 and 2 Marstiller, in Randolph County near Whitmer about 16 miles east-southeast of...

SMITH RIG COUNT.
June 1, 1998... SMITH RIG COUNT 5-22-98 5-23-97 Proposed depth Rig % Rig % (ff) count footage* count footage* 0-2,5000 15 26.6 16 6.2...

U.S. HEATING DEGREE DAYS*.
June 1, 1998... U.S. HEATING DEGREE DAYS* 1998% change Total degree days Mar. Mar. from July 1 through Mar. 31 ...

OXYGENATES.
June 1, 1998... OXYGENATES Mar. Feb. YTD YTD 1998 1998 Change 1998 1997 Change 1,000 bbl Fuel ethanol Production 2,663 2,385 278...

Newsletter.(miscellaneous information on gas and oil industries)
June 8, 1998... OPEC (excluding Iraq) reduced oil output in April by 0.9 million bid. compared with their pledge to cut 1.25 million b/d, according to Hornsby & Co.'s energy risk management services. During this time, Iraq increased output by 0.3 million bid,...

Gorgon: an Olympic effort.
June 8, 1998... Comprehending the scale and size of oil and gas developments is sometimes difficult for the consuming public. Harder yet to grasp, it seems, are the rippling circles of benefits from many megaprojects. In the most recent issue of Western...

A distorted view of ANWR.
June 8, 1998... "The resource update compiled by the U.S. Geological Survey should provide a cold shower of reality for those who continue to seek a justification for oil drilling within the Arctic National Wildlife Refuge. This assessment makes the probability...

Low oil prices, economic woes threaten Russian oil exports.
June 8, 1998... Eugene (yevgeny) Khartukov is general director of the International Center for Petroleum Business Studies and head of the World Energy Analysis & Forecasting Group, both in Moscow. During 1970-82, he worked in various research centers,...

Shell reviewing Japanese refineries.(Brief Article)
June 8, 1998... Royal Dutch/Shell Group's Japanese refining unit, Showa Shell Sekiyu KK, is reviewing the operations of its five affiliated refineries in the hopes of boosting effiency. The streamlining plan, which Shell hopes to complete by September,...

Marathon to acquire Canadian firm Tarragon.(Brief Article)
June 8, 1998... Marathon Oil Co., Houston, has agreed to acquire Tarragon Oil & Gas Ltd., Calgary, in a deal valued at $1.1 billion (U.S.). The agreement is the latest in a long series of oil industry mergers and acquisitions. Marathon, a unit of USX Corp.,...

Pogo Producing, Arch Petroleum agree to merge.(Brief Article)
June 8, 1998... Pogo Producing Co., Houston, and Arch Petroleum Inc., Fort Worth, have entered into a definitive merger agreement. The deal is valued at about $115 million, including the assumption by Pogo of $48.5 million in Arch debt and production payment...

NOVA-TransCanada merger moves forward.(includes news on Alliance Pipeline consortium's proposed pipeline)(Brief Article)
June 8, 1998... NOVA Corp. and TransCanada PipeLines Ltd., both of Calgary, have completed the final regulatory steps needed to approve their $14 billion (Canadian) merger. Both companies' shareholders are scheduled to vote on the merger June 29. The Alberta...

Ukraine's export hopes.
June 8, 1998... It took 6 months of trilateral diplomacy, but Ukraine apparently will become a transportation corridor for oil shipments from Azerbaijan to Western European refineries. Officials of the two nations have reached a verbal agreement to begin...

MMS eases rule For BOP testing.(blowout preventer)(Brief Article)
June 8, 1998... The U.S. Minerals Management Service has issued a final rule amending the testing requirements for blowout preventer systems used in offshore oil and gas drilling and completion operations. The MMS said the revised testing requirements could...

U.S. firms nab Indian exploration contracts.
June 8, 1998... Almost immediately after the U.S. announced the imposition of economic sanctions against India in response to nuclear weapons testing (OGJ, May 25, 1998, p. 19), India awarded the bulk of a set of production-sharing contracts (PSCs) to U.S.-based...

Sakhalin-area developments move forward.
June 8, 1998... Drilling and development plans for two major offshore Sakhalin Island development projects are advancing. Exxon Neftegaz Ltd., operator of the Sakhalin I project, recently revealed results from its 1997 operations, as well as its development...

U.K. updates reserves and production tally.(Brief Article)
June 8, 1998... This year's report on U.K. oil and gas resources, published by the U.K. Department of Trade and Industry (DTI), portrays a mature but active sector. Known as the Brown Book, the 1998 report shows that 22 new offshore fields were brought into...

Amerada passes Falklands rig to Lasmo.(Brief Article)
June 8, 1998... Amerada Hess Ltd. has passed Borgny Dolphin semisubmersible rig to Lasmo plc to drill a second well in virgin waters north of the Falkland Islands. Amerada, Lasmo, Shell Exploration & Production By, and International Petroleum Corp. (IPC),...

Oil groups urge strict tank enforcement.(underground storage tanks)
June 8, 1998... The U.S. oil industry is urging the Environmental Protection Agency to enforce a Dec. 22 deadline for owners and operators of certain underground storage tank systems to upgrade, replace, or close them. The American Petroleum Institute, the...

Amoco, Repsol form gas alliance.
June 8, 1998... Amoco Corp. and Repsol SA of Spain have agreed to form a strategic alliance to supply natural gas markets in Latin America and Spain. As a first step, the two companies have proposed adding a second train to an LNG plant being built at Point...

Northwest Europe's Greenpeace window.
June 8, 1998... Northwest Europe's offshore operators are used to the region's weather window, but now it appears there is a Greenpeace window as well. At the end of last year, Greenpeace suspended its interruption of exploration and development along the...

India enlists Gaz de France's assistance in LNG projects.(Brief Article)
June 8, 1998... Petronet LNG Ltd. has chosen Gaz de France as its strategic partner for developing several liquefied natural gas (LNG) projects in India. Petronet LNG expects to construct a number of LNG receiving terminals along the western coast of India,...

BHP unveils new compact LNG technology.(Brief Article)
June 8, 1998... BHP Petroleum Pty. Ltd. unveiled a new liquefied natural gas (LNG) process claimed to make development of marginal and offshore projects viable. BHP detailed its Compact LNG technology, which it says enables LNG production at volumes as low a...

Mobil launches shipboard LNG regasification.
June 8, 1998... Mobil Technology Co. and Mobil Shipping & Transportation Co. have jointly introduced a new technology for converting liquefied natural gas carriers to perform the added duty of offshore regasification. The system, called Mobil Shipboard...

Northern Border Pipeline Co.,.(Brief Article)
June 8, 1998... Omaha, will apply in the fall to the Federal Energy Regulatory Commission for approval of its $165 million Northern Border Project 2000. Pipeline capacity would be increased by 58 MMctd from Monchy, Sask, to Ventura, Iowa; 195 MMcfd in...

Petroleos Mexicanos-Refinacion.(Brief Article)
June 8, 1998... Petroleos Mexicanos-Refinacion let contract to M.W. Kellogg Technology Co., Houston, a unit of Dresser Industries Inc., for the basic design and license of three grassroots fluid catalytic cracking units. Of the three proposed crackers in Mexico,...

Petrovietnam.(Brief Article)
June 8, 1998... Viet Nam's state owned oil company, will form a joint venture with Zarubezhneft, Russia's oil exporting firm, to construct and operate the $1.3 billion Dung Quat refinery in central Viet Nam. The 130,000 b/d capacity plant is scheduled for...

Eastern Petrochemical Co.(Brief Article)
June 8, 1998... Eastern Petrochemical Co., a 50-50 joint venture of Saudi Basic Industries Corp. and Saudi Petrochemical Development Co., a Japanese concern led by Mitsubishi Corp., let turnkey contracts to Mitsubishi Heavy Industries Ltd. of Japan to upgrade...

Groundbreaking commenced.(Brief Article)
June 8, 1998... Groundbreaking commenced for construction of Sudan's second crude oil refinery at El-Gily, 100 km north of Khartoum. The $600 million refinery will have capacity of 50,000 b/d. Construction of a 1,610-km pipeline is also set to begin. The...

Nesle Oy.(Brief Article)
June 8, 1998... Nesle Oy will double production to 38,000 b/d of premium diesel at its Porvoo, Finland, refinery to meet increased export demand in northwest Europe. The company will spend 170 million markka to modify existing refining units. The additional...

State of Alaska.(Brief Article)
June 8, 1998... State of Alaska approved supplying an additional 28,000 b/d of royalty oil to Mapco Alaska Petroleum Inc., Anchorage, for processing at its North Pole refinery. This brings Mapco's total royalty oil supply to 63,000 b/d. The oil will come from...

State Oil Co. of the Azerbaijan Republic.(Brief Article)
June 8, 1998... State Oil Co. of the Azerbaijan Republic (Socar) awarded a 25-year production-sharing-agreement (PSA) on the 550 sq km offshore area of Araz-Kurdashi-Shirvan Deniz in the Caspian Sea to Italy's Agip SpA 25%. Japan's Mitsui & Co. Ltd. 15%, and...

U.S. Minerals Management Service.(extends evaluation of bids for Central Gulf of Mexico Lease Sale 169)
June 8, 1998... U.S. Minerals Management Service extended by 30 days its evaluation of bids received in Central Gulf of Mexico Lease Sale 169 (OGJ, Mar. 23, 1998, p. 32). MMS said it needed until July 15 "due to the unusually high number of bids.'

Angolan state oil firm.
June 8, 1998... Sonangol awarded operatorship of deepwater Block 25 to Agip Angola Ltd. The block covers 4,852 sq km in water depths of 7002,200 m and is 390 km south of Luanda. Block interest holders are Agip 40%, Esso Exploration & Production (Block 25) Ltd....

TransTexas Gas Corp.(reports flows of Galveston Bay well)
June 8, 1998... TransTexas Gas Corp. reported its State Tract 352 No. 1 well in Galveston Bay flowed on test 53.9 MMcfd of natural gas and 6.264 b/d of crude and condensate. TransTexas said the well also confirmed the extension of the Eagle Bay gas field into...

Tatarstan.(Brief Article)
June 8, 1998... Tatarstan, an autonomous Russian republic, is planning to expand oil production to 30 million tons/year from its current 25 million ton/year level. Oil companies launched in the last 12 months, instead of the republic's oil holding company...

Socar.(Brief Article)
June 8, 1998... Socar awarded a production sharing agreement (PSA) for Azerbaijan's Southwest Qobustan area, about 50 miles from Baku, to Union Texas Qobustan Ltd., a unit of Union Texas Petroleum Holdings Inc., Houston, and Commonwealth Oil & Gas Co. Ltd., a...

China Offshore Oil Bohai Corp.(caissons being sunk to support oil wells in China's Bohai Bay)
June 8, 1998... China Offshore Oil Bohai Corp. (Coobc) reported that caissons are being sunk to support offshore oil wells in the Jinzhou 9-3 oil field in China's Bohai Bay. The field is scheduled to begin producing in 1999. Conventional construction methods...

Coobc.(Brief Article)
June 8, 1998... Coobc will jointly develop two large oil fields in the central part of China's Bohai Bay in a bid to boost the regions crude production capacity by 80,000 b/d. Production from the two fields, Qinhuangdao 32-6 and Nanbao 35-2, will be piped inland...