The Oil and Gas Journal articles from May 1999

The Oil and Gas Journal archives from May 1999

Newsletter.
May 31, 1999... Indonesia soon will emerge as the next hot area for foreign investment in refining-marketing. The trend will get under way in earnest in 2001, when state firm Pertamina begins privatizing by offering stakes in its seven refineries, says...

U.S. INDUSTRY SCOREBOARD 5/31.
May 31, 1999... U.S. INDUSTRY SCOREBOARD 5/31 4 wk. 4 wk. avg. % Year-to-date YTD avg. Latest week 5/21 average year ago [*] change average [*] year ago [*] Demand (1,000 b/d) Motor...

Multicomponent expectations.
May 31, 1999... A survey conducted earlier this year shows what oil and gas companies expect of an acquisition tool that has helped expand the use of seismic techniques in oil and gas development. The tool is multicomponent sensing of sound reflections....

Oxygen in gasoline.
May 31, 1999... A popular myth about gasoline chemistry has crashed against the hard wall of science. The National Research Council, in a study for the U.S. Environmental Protection Agency, concludes that adding oxygen to reformulated gasoline harms...

Talisman focuses growth strategy on E&P outside Canadian core.
May 31, 1999... Canada's Talisman Energy Inc. is making substantial capital investments in Sudan, Indonesia, and the North Sea as the building blocks for long-term corporate and reserves growth. Jim Buckee, president and CEO of the Calgary-based former...

Prices, regs keys to meeting U.S. gas demand.
May 31, 1999... North American basins have huge remaining natural gas potential, but questions remain whether economics and the regulatory climate will allow deliverability to meet projected U.S. gas demand. That was the message delivered by several...

Cross limbers shoots for 90% gas portfolio.
May 31, 1999... Cross Timbers Oil Co. has made an acquisition that will round out its portfolio of U.S. natural gas properties and move it further toward its ultimate goal of having a reserves base that consists of 90% natural gas. In its latest in a...

Devon-PennzEnergy merger seen as favorable.
May 31, 1999... The U.S. financial community has taken a generally positive view of the proposed merger of Oklahoma City's Devon Energy Corp. and Houston's PennzEnergy Co. The two companies announced a definitive merger agreement May 20 (OGJ, May 24,...

Iraqi sales doubts prop up oil prices.
May 31, 1999... Questions over the outlook for Iraqi oil supplies this year have put a prop under oil prices again. Oil prices rose slightly last week as traders waited on a renewal of the accord between the United Nations and Iraq allowing Baghdad to...

U.K. cites 1998 as record year for oil flow.
May 31, 1999... U.K. hydrocarbon liquids production hit a record in 1998. Output of oil, condensate, and natural gas liquids totaled 132.6 million metric tons last year, according to the U.K. Department of Trade and Industry. U.K. natural gas...

Statoil starts oil production in Asgard field.(Brief Article)
May 31, 1999... Norwegian state firm Statoil AS has started oil production from Asgard field, which lies in 300 m of water in the Norwegian Sea. The Asgard project involves development of three fields with a production, storage, and offloading vessel for...

Dana awarded three PSCs off Mauritania.(Brief Article)
May 31, 1999... Dana Petroleum plc, London, has been awarded three production-sharing contracts for license blocks off Mauritania. Blocks 1, 7, and 8 cover about 34,000 sq km and extend from shallow water to water depths of about 2,500 m beyond the edge...

Pogo no-no.
May 31, 1999... Thanks to overzealous advocates, the Minerals Management Service's controversial oil royalty rule may be doomed. Last week, Congress again blocked MMS from issuing the often-revised rule (OGJ, Feb. 16, 1998, p. 36), this time until Oct....

API: U.S. petroleum industry cuts Y2K risk.
May 31, 1999... The U.S. petroleum industry is making good progress on readiness for the Year 2000 (Y2K) computer problem, American Petroleum Institute told a U.S. congressional committee recently. Red Cavaney, API president, told a special Senate...

Small refiners may get sulfur rule break.(Brief Article)
May 31, 1999... U.S. Environmental Protection Agency may give small refiners 2 more years to meet the agency's proposed gasoline sulfur rule. Testifying before the Senate environment committee, EPA Administrator Carol Browner strongly defended the rule...

U.K. 'fuel poverty'.(Brief Article)
May 31, 1999... On May 24, the U.K. became the first country to offer all gas and electricity customers--industrial, commercial, and residential--a choice of suppliers. The government claims that residential gas customers who have changed suppliers have...

Marathon Ashland Petroleum LLC.(Brief Article)
May 31, 1999... (MAP), Findlay, Ohio, signed an agreement with Ultramar Diamond Shamrock Corp. (UDS), San Antonio, to acquire UDS's Michigan-based convenience stores, jobber network, and terminals. MAP will acquire 179 UDS-owned and operated stores, five...

Ultramar Diamond Shamrock.
May 31, 1999... will shut down its 50,000 b/d refinery at Alma, Mich., on Oct. 1,1999, or upon closing of the sale of its Michigan retail-related assets, whichever comes first (see above brief). The Alma refinery, although offered among the Michigan sale...

Petroleos Mexicanos.
May 31, 1999... signed a contract with Marathon Ashland Petroleum on May 20 to supply 90,000 b/d of Maya crude to MAP's Garyville, La., refinery. The contract will take effect once MAP has completed work on the refinery, which is to include the addition of...

Cudd Well Control Co.
May 31, 1999... extinguished one of five wells that caught fire following a blowout of well 121-B in Bombay High field (OGJ, Mar. 22, 1999, p. 46). Cudd drilled two relief wells for India's Oil & Natural Gas Corp., one to a depth of 2 km below the sea floor,...

Occidental Petroleum Corp.(Brief Article)
May 31, 1999... Los Angeles, signed a production-sharing agreement and two unified operating agreements (UOA) for Limoncocha and Eden-Yuturi fields on its 494,000-acre Block 15 in the eastern Oriente basin of Ecuador. Under the UOAs, Oxy's oil and gas unit...

PanCanadian Petroleum Ltd.(Brief Article)
May 31, 1999... Calgary, and partners began construction of a central control and warehouse complex for an enhanced recovery project in Weyburn oil field in Saskatchewan (OGJ, Mar. 15, 1999, p. 32). The $1.1 billion (Canadian) carbon dioxide miscible flood...

CMS Energy Corp.(Brief Article)
May 31, 1999... unit CMS Oil & Gas Co., Dearborn, Mich., let contract to Global Industries Ltd. subsidiary Global Offshore International Ltd., Houston, for engineering, procurement, fabrication, transportation, installation, and start-up services for...

Enterprise Oil plc.
May 31, 1999... London, received U.K. approval to develop Cook field on North Sea Block 21/20a. The field lies in 94 m of water and will be developed with two subsea wellheads tied back with an 8-in, flow line to the Anasuria floating production, storage,...

Shell U.K. Exploration & Production.(Brief Article)
May 31, 1999... extended for 5 years a contract with B.J. Services Co., Aberdeen, for the provision of coiled tubing and nitrogen services in Shell's southern North Sea fields. The new contract, valued at more than [pound]20 million, comprises underbalanced...

Texaco North Sea U.K. Co.(contract with John Wood Group PLC)(Brief Article)
May 31, 1999... let a [pound]35 million, 5-year contract to John Wood Group plc, Aberdeen, for engineering and construction services in its North Sea Captain, Erskine, Galley, Strathspey, and Tartan fields. Work will include project management, feasibility...

SOCO Vietnam Ltd.(contract with Petrovietnam)(Brief Article)
May 31, 1999... a 70%-owned subsidiary of SOCO International plc, London, signed a heads of agreement with Vietnamese state firm Petrovietnam for rights to negotiate a contract to operate Block 16-1 in the South China Sea. SOCO expects to set up a deal for...

Koch Midstream Services Co.(buys natural gas assets of Glossop Gas Co.)(Brief Article)
May 31, 1999... Houston, acquired the West Texas natural gas gathering and treating assets of Glossop Gas Co. LC. Included in the transaction was Glossop's Chenot Putnam gathering system and treating plant in Pecos County, Texas. The plant is capable of...

TransCanada PipeLines Lid.(to reduce natural gas transmission volume on Nova pipeline)(Brief Article)
May 31, 1999... Calgary, will cut natural gas transmission on its Nova pipeline system in Alberta by 1 bcfd during May 31-June 9. The company said it will take about 100 miles of 36-in, pipe out of service to check for signs of stress-related cracking. The...

Sempra Energy International.(contract for natural gas pipeline)(Brief Article)
May 31, 1999... a unit of Sempra Energy, San Diego, began laying a 23-mile, $35 million natural gas pipeline that will transport gas from the U.S/Mexican border to the Presidente Juarez power plant at Rosarito, Baja California (OGJ, Sept. 7,1998, p. 42). The...

Conoco Indonesia Inc.(contracts with PT McDermott and McDermott South East Asia Pte. Ltd.)(Brief Article)
May 31, 1999... let contracts valued at $335 million to Indonesia's PT McDermott and McDermott South East Asia Pte. Ltd. to lay a 300-mile, 28-in., subsea natural gas pipeline from gas fields in the West Natuna Sea to Singapore (OGJ, Sept. 7,1998,...

Enbridge Pipelines Inc.
May 31, 1999... Calgary, reported a break and shutdown May 20 of a heavy oil export pipeline. The company shut down the 650,000 b/d Line 3 after an estimated 6,000 bbl of heavy crude were spilled in a rural area about 5 miles east of Regina, Sask. Enbridge...

BC Gas Inc.,.(to build natural gas pipeline in British Columbia)(Brief Article)
May 31, 1999... Vancouver, B.C., received approval from the British Columbia Utilities Commission (BCUC) to build the $350 million (Canadian) Southern Crossing natural gas pipeline project from Yahk to Oliver, B.C. (OGJ, Dec. 14, 1998, p. 40). BCUC gave BC...

The threat to winter gas supplies.
May 31, 1999... to Australia's Victoria state was eased with the completion of an upgrade of the gas pipeline connecting New South Wales and Victoria. A new compressor increased the line's capacity so that it can carry 10% of Victoria's winter peak needs. In...

GPU Inc.(purchases Transmission Pipelines Australia)(Brief Article)
May 31, 1999... Morristown, N.J., acquired Transmission Pipelines Australia (TPA), offered for sale by the government of Victoria state. GPU offered $1.025 billion (Australian) for TPA, which was sold as a result of the privatization of Victoria state's...

Saga Petroleum AS.(Brief Article)
May 31, 1999... sold an 18.5% interest in licenses containing the Corrib discovery and Shannon prospect off Ireland to Marathon International Petroleum Hibernia Ltd. for [pounds]12.8 million. The sale covered anticipated spending on exploration in Corrib to...

OMV Australia Pty. Ltd.,.(Brief Article)
May 31, 1999... a unit of Austria's OMV AG, suffered a setback in its bid to take over Cultus Petroleum NL, Sydney, with the release of an independent valuation of Cultus. Grant Samuel & Associates values Cultus at $1.04-1.39 (Australian)/share, while OMV...

Black Sea Energy Ltd.(Brief Article)
May 31, 1999... Calgary, is changing its name to Ivanhoe Energy Inc. Ivanhoe will have three operating divisions--in Russia, the U.S., and China. Also, the company will take over Sunwing Energy Ltd., which has production in China (OGJ, May 24, 1999, p. 46)....

Weatherford International Inc.
May 31, 1999... Houston, will acquire Dailey International Inc., Conroe, Tex., for $195 million. Dailey's outstanding $275 million senior debt will be exchanged for $185 million in Weatherford stock, while Dailey equity security holders will receive $10...

Costilla Energy Inc.(Brief Article)
May 31, 1999... Midland, Tex., will cut its work force to reduce overhead expenses by about $675,000/quarter. The cuts will affect 34 workers in Midland and eight in Corpus Christi, Tex.

Tesoro Marine Services.(Brief Article)
May 31, 1999... the Houston-based unit of Tesoro Petroleum Corp., San Antonio, will acquire the U.S. West Coast marine fuels operations of BP Amoco plc unit BP Marine for an undisclosed sum. The transaction includes terminals in Los Angeles, Seattle, and...

National Iranian Oil Tanker Co.(Brief Article)
May 31, 1999... let contract to Hyundai Heavy Industries Co., Seoul, for the construction of five very large crude carriers. Delivery of the 300,000-dwt carriers is slated for April 2001-02. According to South Korea Shipbuilders' Association, the order comes...

F.T. Everard & Sons Ltd.(Brief Article)
May 31, 1999... London, acquired four 3,000-dwt coastal tankers from Shell U.K. Oil Products Ltd. and Irish Shell Ltd. Under contract, Everard will take over provision of Shell's British Isles coastal tanker deliveries. Although the contract's value was not...

Polipropileno del Caribe SA.(Brief Article)
May 31, 1999... Bogota, licensed the Novolon gas-phase polypropylene (PP) technology from Targor GmbH, the PP joint venture of BASF AG and Hoechst AG. Polipropileno del Caribe plans to build a 140,000 metric ton/year PP plant at Cartagena, Colombia, and is...

General Electric.(Brief Article)
May 31, 1999... unit GE Plastics plans to build a $20 million plastics compounding plant on Thailand's east coast. Production from the 30,000 metric ton/year plant will include Lexan-brand polycarbonate (PC), Cycolac-brand acrylonitrile butadiene styrene...

American Petroleum Institute.
May 31, 1999... said a survey of 118 U.S. oil companies indicates a continuing trend of lower workplace accident rates in 1998. According to API, there were 2,723 injuries and 187 work-related illnesses among the 212,850 employees of the participating...

STATE OF THE ART OF 4D SEISMIC MONITORING: THE TECHNIQUE, THE RECORD, AND THE FUTURE.
May 31, 1999... THE AUTHORS John R. Fanchi is a professor in the Petroleum Engineering Department at the Colorado School of Mines. Prior to joining CSM in 1998, he worked in the technology centers of three major oil companies. His oil and gas industry...

WHOLE-OF-LIFE APPROACH To OIL-FIELD ECONOMICS HELPS TECHNOLOGY DECISIONS.
May 31, 1999... THE AUTHORS Richard Uden is a senior staff explorationist with Continuum Resources International Corp. Prior to joining Continuum he worked as on independent consultant in the UK. for oil and gas companies, consulting firms, and...

COMMENT: CHANGE COMING FOR THE 'UPSTREAM EXPLOITATION MACHINE'.
May 31, 1999... THE AUTHORS Roger N. Anderson is director of the Energy Research Center at Columbia University and president of Columbia Enterprise Systems. He received a PhD from the Scripps Institution of Oceanography University of California, San...

OPEN COMPUTING PLATFORM DUE FOR SHARED EARTH MODELING.
May 31, 1999... THE AUTHORS Dan Schenck is business unit manager for Pet petrotechnical Open Software Corp. Before joining POSC he worked for 8 years as a data management consultant with Texaco's Exploration & Production Technology Department and,...

Inspection program evaluates HF-alkylation carbon steel piping.
May 31, 1999... THE AUTHORS Leomar Penuela is a corrosion and materials superintendent at the Paraguana refining center Pdvsa Manufacturing & Marketing, an affiliate of Petroleos de Venezuela He has 17 years experience dealing with corrosion problems in...

Fixed-bed technology purifies rich gas with [H.sub.2]S, Hg.
May 31, 1999... THE AUTHORS Elizabeth F. Rhodes is a plant process engineer for BP Amoco at the CATS terminal. She joined the company in March 1997. Previously she was a process engineer for ICI Katalco, She graduated in 1995 from the University of...

Probabilistic reserves definitions, practices need further refinement.
May 31, 1999... THE AUTHOR John R. Schuyler is a consulting petroleum evaluation engineer in Aurora, Colo. Since 1990, he has presented over 130 industry short courses about risk and economic decision analysis, most in affiliation with OGCI. He holds BS...

Complex cleanup restores old refinery site.(Brief Article)
May 31, 1999... Phillips Petroleum Co. recently completed the second phase of cleanup at a former Okmulgee, Okia., refinery. Ultimately, the site will become an industrial park for the community, according to Phillips. The refinery was shut down in 1981...

Turbidity monitoring system.(Brief Article)
May 31, 1999... Here's the Turboscope based turbidity monitoring system that allows for continual monitoring of suspended contaminants in condensate and other liquid-based systems, enabling users to detect contaminated liquids and divert them to waste...

Frac designed for high rate ceramic proppant completions.
May 31, 1999... The new CK FRAQ System is designed specifically to optimize pump rate and volume capabilities and debris tolerance associated with ceramic proppant fracturing while minimizing risks of sticking and casing erosion. The system's shortened...

Wireless platform links mobile workers to office.
May 31, 1999... A new wireless information system extends the full power of corporate computing to mobile work forces. The new patent-pending MobileFusian application server platform helps improve efficiency and profitability by providing field service...

Directional drilling tool.
May 31, 1999... The Retriever.is a new retrievable positive pulse system that enhances the existing fleet of Reliant collar mounted systems. Utilizing many of the same components of the existing tools, the new system represents a midpoint between collar...

MOVES AND PROMOTIONS.(multiple briefs on executive appointments)
May 31, 1999... The Expro Group, Reading, Berkshire, England, has named Graeme Young technical sales manager for the Exal brand within the UKCS/Norway region, based in Aberdeen, Scotland. The position has been newly created as part of a regionalization...

Large oil, gas, NGL project growing in South Sumatra.
May 31, 1999... A group led by Santa Fe Snyder Corp., Houston, has a large oil and gas exploration and production project taking shape in Indonesia's South Sumatra basin. Exploration on the Jabung Block has identified 300-400 million bbl of crude oil,...

Colombia.
May 31, 1999... Harken Energy Corp., Houston, spudded Laurel 1, its third well on the 250,000 acre Bolivar Association Contract Area in the Middle Magdalena basin. It is to have a 4,000-6,500 ft later al to evaluate Rosa Blanca at 8,800 ft TVD. The drill...

Malaysia.
May 31, 1999... Saba Shell Petroleum Co. Ltd. and Petronas Carigali Sdn. Bhd. are evaluating surrounding waters in Block G off Sabah for more deepwater opportunities after drilling a substantial discovery earlier this year. Kamunsu East-1, in 2,417 ft of...

Pakistan.
May 31, 1999... IPR Transoil Corp., Cairo, won the Guddu concession in Sindh Province. The 2,093 sq km concession is near Mari, Sui, Kandhkot, and Qadirpur gas fields. Discovery of sweet gas in Cretaceous Pab in a deep well at Sui improves the prospect...

Philippines.
May 31, 1999... Murphy Oil Corp., El Dorado, Ark., told shareholders it is interpreting seismic data acquired over its Cuyo platform block in the northern Sulu Sea. The firm has an option to drill a wildcat on the 3.7 million acre geophysical survey and...

Portugal.
May 31, 1999... A group led by Mohave Oil & Gas Corp., Houston, plans to appraise an indicated discovery in the Lusitanian basin with drilling to start in fourth quarter 1999. The indicated discovery well, Aljubarrota 2, encountered thick gas columns in...

Sudan.
May 31, 1999... A group led by the IPC Sudan Ltd. subsidiary of Lundin Oil AB, Stockholm, reported that its Thar Jath well is an apparent significant discovery. The well was projected to 3,200 m to evaluate Cretaceous Bentiu and Darfur sandstones that...

Venezuela.
May 31, 1999... A Burlington Resources Inc. group was re-evaluating the 525,000 acre Delta Centro Block in eastern Venezuela after the first wildcat encountered hydrocarbons deemed noncommercial. Jarina 1X, costing more than $20 million, was to have been...

New Mexico.
May 31, 1999... Synergy Operating LLC, Aztec, N.M., staked three wildcats to Jurassic Entrada in McKinley County. The Fajada Wash locations, in 2 and 7-20n-10w, are projected to 5,100-5,200 ft. They are 6-8 miles southwest of Leggs (Entrada oil) field...

Oregon.
May 31, 1999... Enerfin Resources Northwest, Bakersfield, Calif., staked an exploratory test southeast of Mist gas field. The 43-26-64 John Hancock Insurance, in 26-6n-4w, Columbia County, is projected to Eocene at 4,560 ft. The objective is Sunset...

Pennsylvania.
May 31, 1999... Somerset Oil & Gas Co., Indiana, Pa., acquired development and production rights to 141 gas wells that are part of a joint venture with Consolidated Natural Gas Co. The wells are in Indiana, Westmoreland, and Armstrong counties.

Texas.(Brief Article)
May 31, 1999... West Titan Exploration Inc., Midland, Texas, and Mobil Exploration & Producing U.S. Inc. committed to acquire a further 300 sq miles of 3D seismic surveys in the western Delaware basin based on preliminary processing results of the first...

Wyoming.(Brief Article)
May 31, 1999... A group led by Redwood Energy Ltd., Denver, has an indicated discovery on the Overthrust Belt. The 1-10p well, in 10-19n-120w. on the 7,029 acre Windy Point Federal Unit in Lincoln County, encountered more than 600 ft of highly...

PERSONALS.
May 31, 1999... David A. Trice has been named president and COO of Newfield Exploration Co., Houston. The following have been elected to the board of directors of Norgasco Inc., Anchorage: Edward 0. Bufkin Jr., president; Ted Collins Jr.,...

OGJ CRACK SPREAD.
May 31, 1999... OGJ CRACK SPREAD 5-21-99 [*] 5-22-98 [*] Change % $/bbl change SPOT PRICES Product value 18.40 18.20 0.20 ...

API IMPORTS OF CRUDE AND PRODUCTS.
May 31, 1999... API IMPORTS OF CRUDE AND PRODUCTS Districts 1-4 Districts 5 Total U.S. 5-21 5-14 [*] 5-21 5-14 [*] 5-21 ...

API CRUDE AND PRODUCT STOCKS.
May 31, 1999... API CRUDE AND PRODUCT STOCKS Motor gasoline Blending Jet fuels Crude oil Total Comp. [+]...

API REFINERY REPORT--MAY 21,1999.
May 31, 1999... API REFINERY REPORT--MAY 21,1999 REFINERY OPERATIONS Total Input refinery Crude to crude Operable % District ...

OGJ GASOLINE PRICES.
May 31, 1999... OGJ GASOLINE PRICES Price Pump ex tax price [*] ...

BAKER HUGHES RIG COUNT.
May 31, 1999... BAKER HUGHES RIG COUNT 5-21-99 5-22-98 Alabama 4 4 Alaska 4 14 Arkansas 1 7 California 16 29 ...

OGJ PRODUCTION REPORT.
May 31, 1999... OGJ PRODUCTION REPORT 5-21-99 [*] 5-22-98 [+] (1,000 b/d) (Crude oil and lease condensate) Alabama 30 ...

U.S. CRUDE PRICES.
May 31, 1999... U.S. CRUDE PRICES ($/bbl) [*] 5-21-99 Alaska-North Slope 27[degrees] 7.55 Southern Louisiana Light 14.75 California-Kern River 13[degrees] 11.25 Lost Hills...

WORLD CRUDE PRICES.
May 31, 1999... WORLD CRUDE PRICES ($/bbl) [*] 5-14-90 United Kingdom-Brent 38[degrees] 15.13 Russia-Urals 32[degrees] 13.98 Saudi light 34[degrees] 15.75...

REFINED PRODUCT PRICES.
May 31, 1999... REFINED PRODUCT PRICES 5-14-99 ([cent]/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor ...

SMITH RIG COUNT.
May 31, 1999... SMITH RIG COUNT 5-21-99 5-22-98 Proposed depth Rig % Rig % (ft) count footage [*] count footage [*] 0-2,500 13 15.3...