Oil country hot line

Texaco’s chief makes sudden exit

Peter Bijur resigned Feb. 4, 2001, as chairman and CEO of Texaco Inc. His surprisingly quick action follows last October’s announcement that Chevron will buy Texaco in a $33.6-billion stock deal that creates the world’s fourth-largest energy company. Bijur, who headed the third-largest U.S. oil company for about five years, had been poised to become vice chairman at the new conglomerate, which was still awaiting regulatory approval at press time. Banc of America analyst Tyler Dann said Bijur’s decision to opt for early retirement "reinforces the notion that (Chevron Corp.’s CEO) Dave O’Reilly and his team will very clearly be running things." Replacing Bijur as Texaco’s interim head is senior vice president and president of global businesses Glenn Tilton.

Venezuela strikes oil near Trinidad

In an offshore exploration block near Trinidad and Tobago, Venezuelan oil firm Inelectra has discovered oil. The initial flow rate was more than 3,000 bopd from two pay zones. This find marks the third discovery made among Venezuela’s eight exploration contracts awarded to private investors in 1996. However, due to poor results, four contracts have been returned to state-owned firm PDVSA. Inelectra, nevertheless, plans to drill two more wells to delineate the find. Punta Sur 1X struck four oil zones and tested flows at a depth of 8,200 ft from two of the intervals. In a statement made by a PDVSA director, an evaluation plan was announced, to study the commercial viability of the discovery after reviewing information from this well and seismic data in the area.

Mexico, U.S. agree to divide GOM area

Lying beyond the 200-mi territorial limits of Mexico and the U.S. is an unclaimed area of the Gulf of Mexico informally known as "the doughnut hole." Recently, both countries signed the final version of an agreement to divide up the area, delineating potentially lucrative rights to offshore oil exploration. The two countries, however, have decided on a 10-year moratorium on drilling in the area for the purpose of studying where oil deposits may be located. This ensures that both countries get an equal chance to tap into potential finds. The agreement gives Mexico 60% and the U.S. 40% of the 6,500-sq-mi. area.

Shell and NNPC under attack in Nigeria

The Movement for the Survival of Ogoni People (MOSOP) has accused Shell of human rights abuses in the Niger Delta. The organization brought the oil firm before a human rights commission, alleging that the firm frequently used the police and military to defend its operations and suppress local resistance. Shell Deputy Managing Director Egbert Imomoh said, "with the approval of the Inspector General of Police, (Shell) did finance the purchase of 107 Beretta pistols in 1983 for the exclusive use of members of the Nigeria police assigned to Shell." The weapons were considered necessary due to repeated attacks on the oil firm, he said.

   Meanwhile, state-run Nigerian National Petroleum Corp. (NNPC) says reports concerning an approximate 6-million-bbl discrepancy in oil lifting are wrong. A committee of the House of Representatives blames NNPC and its partners’ alleged action for a $25-billion loss in state revenue. NNPC Group Managing Director Jackson Gaius-Obaseki said, "Oil production on behalf of the joint venture is poured into what is called a common pot. There are times we over-lift, but there is usually a reconciliation which is done quarterly or half-yearly."

Murphy gas well listed with Canada’s top 10

In Northeastern British Columbia, which has emerged as a Canadian hot spot for exploration, Murphy Oil Corp.’s 97-H well tested at about 100 MMcfgd, making it one of the top 10 onshore discoveries in Canadian history. The well, which remained confidential until last month, was drilled to a depth of 9,153 ft. Despite the tested flowrate, government regulations currently restrict flowrates to no more than 46 MMcfgd. The firm and its partner, Apache (37%), have deferred a decision on the well’s daily output rate, until they further define the reservoir and acquire regulatory approval for construction of additional pipeline capacity.

Canadian Natural buys PanCanadian asset

Canada’s top E&P firm, PanCanadian Petroleum, has agreed to sell its stake in a major Alberta heavy oil property to Canadian Natural Resources. The deal, scheduled to close last month, allows the country’s fourth-largest E&P firm to gain control over 80% of Pelican Lake field. Canadian Natural will acquire production of 5,000 bpd of heavy oil and 4.7 MMcfgd, along with 67,000 acres of land. The acquisition will boost the firm’s overall daily output from the field to 36,000 bbl of oil and 24 MMcf of gas.

Production resumes at PNG’s Moran field

After talks were held between the government and landowners to quell grievances about field development in the Southern highlands of Papua New Guinea, production started again at Moran oil field. The week-long dispute was instigated by unhappy landowners, who occupied the well pad after they were excluded from a recent agreement to allow further development of the field. The occupation resulted in lost output of about 113,000 bbl of oil, said Chevron Niugini. Petroleum and Energy Minister Chris Haiveta said that every effort is being made to make Moran field proceed to full development.

Seismic survey begins in Morocco

For the first time in Morocco’s history, a seismic survey is being conducted offshore. Vanco Energy and Lasmo have converted the Safi Haute Mer and Ras Tafelney tracts into exploration licenses. CGG’s Symphony vessel will survey 3,000 sq km of the two permits, concentrating on a toe-thrust zone in 4,920 ft to 6,560 ft of water, and another zone that includes deeper inverted structures in waters 5,904 ft to 8,200 ft deep. The country’s current licensing round is expected to close in April.