McMoRan Exploration has agreed to sell its 35% interest in theBrazos Block A-19 field and its 50% interest in the unexploredBrazos block A26, both located in the western Gulf of Mexico. ShellOffshore has signed an agreement to purchase both interests for $70million. Shell plans on drilling a new well on Brazos A-19 in thenear future. McMoRan’s CEO Richard C. Adkerson said, “We are verypleased with the sale of the Brazos properties. This transactionprovides us significant near term financial resources for use inour expanded oil and gas exploration program in the Gulf ofMexico.” Both fields are approximately 75 miles southwest ofGalveston, TX.

The State Corporation Commission (SCC) of the Commonwealth ofVirginia has approved the proposed merger of NiSource and ColumbiaEnergy Group the companies said yesterday. Vrginia’s approval comes asthe last of nine state okays necessary for the merger to go-ahead (seeDaily GPI, July 7; July 14). The SCC handed the order downlast Friday which gives the merger approval upon certain requirementsbeing met. Columbia Gas supplies retail natural gas service to over182,000 customers in 52 counties within Virginia. The state’sapproval brings the proposed merger one more step closer tocompletion. The Federal Energy Regulatory Commission and theSecurities and Exchange Commission still must rule on the union.

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