News from around the world

by The Associated Press

Pile driving began early in July for extension of the ARCO Cherry Point, Wash. oil refinery’s pier. The existing pier extends about 1,300 feet with an attached 400-foot-dock where tankers can unload crude oil.

The expansion, proposed in 1991, will add another 400-foot dock, which will be used for outgoing products. The company hopes to have all of the piles driven before winter weather, with pier completion scheduled for next summer.

BP Amoco said June 23 it has sanctioned a multi-million dollar investment for the Atlantic Basin’s first fully integrated liquefied natural gas power project in northern Spain. BP Amoco has a 25 percent interest in the 800 megawatt combined cycle gas turbine power plant, a 2.75 billion cubic meter a year regasification facility, LNG import terminal and a total of 300,000 cubic meter storage capacity.

The facility will be designed for potential future expansion to 6bcma.

Phillips Petroleum Co. and Chevron Corp. said June 30 that they have received final necessary regulatory clearance to proceed with combining their worldwide chemical businesses into a 50/50 joint venture. With more than $6 billion in assets, Chevron Phillips Chemical Co. will be one of the world’s top producers of olefins, polyolefins, aromatics and styrenics.

Exxon Mobil Corp. said July 3 that it has started production from the Hoover-Diana development in the Gulf of Mexico. The $1.1 billion project averages 140 million cubic feet of gas and 18,000 barrels of oil each day from five wells. Peak production will be 100,000 barrels of oil and 325 million cubic feet a day of gas.

Exxon Mobil is the operator with a 66.7 percent interest; BP Amoco owns the remaining 33.3 percent.

Unocal Corp. said June 29 that its Potiguar II S.A.R.L. affiliate will acquire an interest in the Pescada-Arabaiana oil and gas project offshore Brazil, including a 79 percent participating interest in five concession areas containing five proven oil and gas reservoirs, plus 35 percent interest in a 55,000-acre exploration block.

There are four emission free, solar powered production platforms and a 43-mile 26-inch multi-phase pipeline in operation with gross proved developed and undeveloped reserves of 27 million barrels of oil and 381 billion cubic feet of gas.

The United Kingdom has given approval for development of the $400 million gas project at the Skene field in the Northern North Sea.

An Exxon Mobil Corp. subsidiary, Mobil North Sea Ltd., will operate the field, which is expected to produce up to 180 million cubic feet of gas per day plus 25,000 barrels per day of associated liquids when production begins by early 2002. Recoverable resources are estimated at 95 million oil-equivalent barrels.

Foreign companies will invest about $2 billion in Iran’s petrochemical industry during the current fiscal year, a senior oil official said July 4, with 10 new projects and a number of expansion schemes under way.

Iran plans to export about $700 million worth of petrochemical products during this fiscal year, which ends March 2001, an increase of some 21 percent over the previous fiscal year.

Exxon Mobil Corp. said July 19 that its subsidiary, Esso Exploration and Production UK Ltd., has received approval from the British government to develop the Brigantine gas fields in the Southern North Sea, three fields with estimated recoverable of 280 billion cubic feet of gas.

The project is expected to come on stream in January 2001 at a project cost of $150 million. Production rates of 130 million cubic feet per day are expected soon after start up and the project will ultimately development some 50 million oil-equivalent barrels.

Phillips Petroleum Co. said July 20 its board of directors has approved expenditures for the first development phase of the company’s Peng Lai 19-3 field in block 11/05 in China’s Bohai Bay. The company said it has also made two new oil discoveries on the block, bringing total discoveries there to six.

First production is expected in early 2002 at 35,000-40,000 barrels per day.