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Alaska marks 25 years as a producer

A significant milestone was reached on July 28, 2002, when the 25th anniversary of the first oil flow through the Trans-Alaska pipeline was marked. On that date in 1977, Alaska’s first commercial oil reached the port of Valdez. Four days later, the Arco Juneau departed from Valdez as the first supertanker to carry North Slope crude to market. Since then, more than 13.5 billion bbl of oil have traversed the pipeline. In 1977, Alaska’s population was roughly 410,000, compared to about 635,000 today. Concurrently, the state government’s budget has risen to $7 billion from $1 billion. Noting the silver anniversary of first oil, Washington D.C.-based Alyeska Pipeline Service executive Willie Hensley said that Alaska’s ability to function as a state would not be possible without North Slope oil. "In my mind, had Prudhoe Bay not been (found in 1968), we might have had to revert to territorial status." Before that, Alaska struggled on federal subsidies.

CMS sells oil & gas assets

Amid a government investigation into CMS Energy Corp.’s alleged false power trades, CFO Alan Wright resigned and was replaced by Thomas Webb, former CFO of cereal maker Kellogg Co. Webb joins the Michigan-based firm as it prepares to put together a $250-million securities sale in an attempt to boost its balance sheet and firm up its finances. In addition to this plan, CMS Energy has agreed to sell its oil and gas unit. The $232-million sale is expected to be complete by third-quarter 2002. French firm Perenco S.A. will purchase the oil and gas unit, excluding all assets in Colombia. CMS Energy is negotiating with an undisclosed party on the sale of the Colombian assets. This sale is also expected to close by the third quarter.

U.S. firm finds oil and gas offshore Thailand

Pogo Producing Co. reports that it has struck oil and gas in three exploratory wells in the Gulf of Thailand. The three wells are part of a planned six-to-seven well exploratory drilling program, in and near the firm’s offshore block, B8/32. At press time, it was not yet known if the new finds are commercially viable. Pogo owns a 46.3% working interest in the block. The Texas-based firm already has producing wells in the Tantawan, Benchamas and Maliwan fields. It is also developing two other fields, Jarmjuree and Chaba. The first, new discovery well, Benchamas North 4, was drilled beyond the northern boundary of Benchamas field. This means Pogo and its partners will have to file for an extension of the license area.

Wadden Sea development debated

The largest undeveloped stretch of nature in Western Europe, the Wadden Sea, is believed to hold the most valuable natural gas reserves in the European Union. Companies hoping to exploit the area claim that the region probably holds enough resources to power a city of 3 million people for more than 20 years. Plans to allow production in the area have fueled a fierce debate between environmentalists, who claim the gas cannot be removed without harming nature, and firms who say that it can. The area is a top tourist attraction in The Netherlands, a refuge where one can escape crowds in this tiny country crammed with 16 million people. Klaas Zuidema, a volunteer tour guide for the marshlands, said, "This is a place where people come to find peace of mind." Due to major opposition, the Wadden Sea has remained free from all but one commercial drilling platform. However, the new Dutch government said it will allow companies to extract gas from two locations along the coast.

Lukoil wins right to exploit Caspian field

The Russian government has awarded Lukoil the rights to develop that country’s half of Khvalynskoye field in the northern Caspian Sea. Kazakhstan’s oil firm, Kazmunaigaz, will own the other half of the field. Khvalynskoye and two other fields in the region were divided between Russia and Kazakhstan in a bilateral agreement signed earlier this year. The field was the first commercial discovery in what Russia considers its sector of the Caspian. The size of the reserves is unclear. Last year, Lukoil invested $82 million in production in the region.

Venezuela’s PDVSA renews Cuban deal

PDVSA’s decision to resume oil shipments to Cuba of 53,000 bpd has stirred controversy throughout the South American country. Company President Ali Rodriguez said shipments would go ahead despite Cuba’s failure to make good on $142 million in payments for oil previously shipped from Venezuela. The original pact was suspended by PDVSA officials, who had cited commercial factors. Moreover, former PDVSA director Jose Toro Hardy said, "The deal is illegal since it was signed by the two presidents but never approved by the National Assembly." According to PDVSA, from December 2000 to April 2002, Cuba received 25.5 million bbl of crude at a price of $675 million for which it only paid $439 million. Of the remaining $236 million owed, $142 million is far behind schedule. Disgruntled PDVSA officials from various departments are collecting signatures opposing the shipments.

UAE national firm teams up with Djibouti

Emirates National Oil Co. has launched a joint venture with Djibouti to distribute gas to the east African country. This venture includes the creation of a new company, ENOC Djibouti Ltd. SAZF. The company will bottle and distribute liquefied petroleum gas throughout the African country. ENOC Group CEO Hussain Sultan said, "Africa’s untapped potential is huge, with its growing power and energy sector infrastructure needs. And, Djibouti operations could be the stepping stone to introduce ENOC’s diverse products and services portfolio to the rest of Africa." The new venture will see liquefied petroleum gas supplied to Djibouti to meet its annual demand. Sultan said, "Djibouti’s critical geological position, with its port, will drive our expansion into larger landlocked markets of Ethiopia, Eritrea, Somalia and Sudan."