International Highlights

Pipeline & Gas Journal, June, 1999

Gaz de France Acquires Assets From Lasmo

Gaz de France has substantially strengthened its position in the British North Sea after making the winning bid to acquire new gas assets from Lasmo, one of the largest British hydrocarbons producers. Following its investments last year in the Elgin-Franklin and Murdoch fields, Gaz de France is acquiring a 44.5 percent interest in Boulton and 21 percent interest in Caister, in reserved to be developed and in an exploration zone. Gaz de France is also acquiring interests in transmission systems linking these fields to the Theddlethorpe and Bacton terminals, raising from 5.75 percent to 16.25 percent its holdings in the Caister Murdoch System and acquiring a 22.5 percent stake in the Esmond Transportation System. The company's objective is to produce a volume equivalent of 15 percent of the quantities marked in France by 2005.

Gaz de France has further reinforced its presence in the British gas industry through the acquisition of gas marketing company, Volunteer Energy.

Conoco Staying In Shouthest Asia

Despite the recent economic turmoil in Southeast Asia, there are some signs of recovery and Conoco has no intentions of pulling out, according to Archie Dunham, president and CEO of the Houston-based integrated oil company. Dunham told shareholders that Conoco, a former subsidiary of DuPont, is continuing to invest in the region and promised to stay there for the long term. He said Conoco has already begun construction of its 100th retail station in Thailand and plans to build another 15-20 stations there this year. Conoco is also planning to build service stations in Malaysia, he said. The company is talking with Saudi leaders about the possibility of investing in that nation's energy industry as well, he said.

Pipeline Leak Detection In Middle East

EFA Technologies has installed its LeakNet pipeline detection and leak location system on a 60-kilometer, 10-inch internally epicoated jet fuel supply pipeline running between the Jebel Ali Terminal and the Dubai International Airport. The system will continuously monitor the line under static and flowing conditions using the minimum standard industrial pressure and flow instrumentation and will report to the operator the presence of any leaks and its location within one to two minutes of the event. The system in integrated to the host SCADA system in the airport control room.

Poland, Norway Agree To Build Gas Pipeline

Leaders of the two countries have signed a declaration of intent on building a gas pipeline from Norway to Poland. The new pipeline will be built on the bed of the Baltic Sea and subsequently via either Sweden or the Danish Straits. It will carry 3-4 Bcm annually and limit Poland's dependence on Russian gas supplies. Both also signed a deal on Norwegian gas supplies via Germany from 2001-2006. Those supplies will total 500 MMcm annually.

Azerbaijan, Georgia Open Pipeline Operations

Azerbaijan and Georgia inaugurated a new pipeline for Caspian Sea oil in April in the first of a series of pipeline routes intended to end Russia's monopoly as a transit point for oil to European and world markets. Georgian President Eduard Shevardnadze, along with his Azerbaijani and Ukrainian counterparts, pushed a ceremonial button to begin filling an Italy-bound tanker anchored off the Black Sea port of Supsa. The repair and completion of the 830-kilometer Baku-Supsa pipeline and the Supsa terminal cost $565 million. It's the second of two lines which will carry more than 5 million tons of oil annually from Azerbaijan and its main foreign oil consortium. The first pipeline to Russia's Black Sea port of Novorossiisk has been plagued by difficulties in recent months, in part because its route passes through several politically unstable regions and is no longer viewed as a reliable route for Azerbaijani oil. A 10-member multinational consortium, the Azerbaijan International Operating Company (AIOC), produces just over 100,000 bpd from one offshore platform. This may more than double once the main production comes on line.

Turkey-Azer Pipeline A Step Closer

Azerbaijani and Turkish officials met in Istanbul to sign a document to build a main export pipeline for Caspian oil from Baku to Ceyhan. The MEP will be built by Botas, Turkey's state pipeline company, at a specified cost. Turkish officials say it could be built for about US$2.4 billion. Washington puts the cost at US$2.8 billion. Azerbaijan says it could cost US$3.7 billion. Turkey hopes the pledge to accept responsibility for all "extra" costs will convince international oil companies working in Azerbaijan to support this plan.

Feasibility Study Under Way

Yukos will complete a feasibility study of the east Siberian and Mongolian sections of oil export pipeline to link Russia with China. Yukos has access to large oil and gas reserves in east Siberia and has already signed a cooperation agreement with Chinese National Petroleum Corporation, covering the exchange of oil and products between the two companies. Yukos plans to export around 500,000 tons of crude to China from the Pacific port of Nakhodka this year. CNPC will deliver oil to Yukos refineries in Russia from west Kazakhstan.