Company

Chevron, the Royal Dutch/Shell Group and Schlumberger havebecome equal partners in a new Houston-based company, OpenSpiritCorp., which will offer a standardized software infrastructure forthe energy industry. The initial framework was funded by OpenSpiritAlliance, a three-year-old collaboration of exploration andproduction companies and software vendors that studies ways tobetter develop, deliver and use E&P applications. OpenSpiritCorp.’s vendor-neutral and platform-independent applicationframework is expected to be available before the end of the year.Neil Buckley, former president of U.S. operations for Merak, adivision of GeoQuest, will serve as CEO. More information isavailable at www.openspirit.com.

Kinder Morgan, Inc. announced plans to contribute $300 millionin assets to Kinder Morgan Energy Partners, L.P., the company’smaster limited partnership. The largest asset to be contributed isKinder Morgan Texas Pipeline, formerly MidCon Texas, a 2,600-milenatural gas pipeline system that extends from South Texas toHouston along the Texas Gulf Coast.

Although a lot of leg work still remains to be done, PetroleosMexicanos, the national oil company of Mexico, plans to drill fivedeepwater wells in the deepwater Gulf of Mexico in the next sevento 10 years, according to a petroleum engineer for PemexExploration & Production.

In the new economy, while energy-intensive industrial businesslags, the growing information technology (IT) and telecom sectors”should account for an increasingly large piece of the total energypie,” according to an industry analysis report released by J.P.Morgan. And some will profit more than others, the financial giantsaid, in naming seven natural gas-based companies the winners inthe new market.

Charlotte, NC-based Cogentrix Energy is prepared to commenceconstruction on a 816 MW natural gas-fired electric generationplant near Sterlington, LA. The company announced yesterday that ithad secured financing through Bank of America, N.A.

Keeping with the company’s self-imposed completion date, Houston-based Apache closed the deal on its previously announced $385 million acquisition of an Occidental Petroleum subsidiary (see NGI, Aug. 7).

Keeping with the company’s self-imposed completion date,Houston-based Apache closed the deal on its previously announced $385million acquisition of an Occidental Petroleum subsidiary (see DailyGPI, Aug. 3). The subsidiary which ownsinterests on the Outer Continental shelf of the Gulf of Mexico will befinanced under a two-part agreement. Part of the cost will be paid upfront, and the remaining cost will be paid for in futureyears. Included in the sale, are properties in 32 fields, half of themoperated, on 93 blocks with total proved reserves of 56.8 millionbarrels of oil equivalent. Net production of the properties throughyearend are expected to yield an average of 107 MMcf/d and 7,800 bblof oil a day. The proved reserves have an estimated six year reservelife.

Natural Gas Pipeline Company of America (NGPL) continues to movethrough the recontracting process like a hot knife through butter.Since Kinder Morgan took over NGPL parent KN Energy last year, theinterstate pipeline subsidiary has signed multiple agreements andcontract extensions for gas transportation and storage with itsmajor shippers in the Midwest, including another deal announcedlast week with Northern Indiana Public Service (NIPSCO).

Natural Gas Pipeline Company of America (NGPL) continues to movethrough the recontracting process like a hot knife through butter.Since Kinder Morgan took over NGPL parent KN Energy last year, theinterstate pipeline subsidiary has signed multiple agreements andcontract extensions for gas transportation and storage with itsmajor shippers in the Midwest, including another deal announcedyesterday with Northern Indiana Public Service (NIPSCO).