Designed

Oklahoma’s energy secretary has unveiled an aggressive 25-year program designed to reverse the state’s dwindling oil and natural gas production and also ensure its status as one of the top industry leaders into the future.

Houston-based major ConocoPhillips has implemented a three-point plan designed to improve its return on capital employed from 12% to 14% over the next several years, with almost 75% of the 2003 capital budget directed toward improving the upstream business.

Houston-based major ConocoPhillips has implemented a three-point plan designed to improve its return on capital employed from 12% to 14% over the next several years, with almost 75% of the 2003 capital budget directed toward improving the upstream business.

Calgary-based Canadian Superior Energy Inc. kicked off a major gas drilling initiative designed to bring in supply from several newly established areas of northwestern and west-central Alberta and northeastern British Columbia. Company President Greg Noval said drilling will begin later this week on 25 wells in the Ladyfern, Chinchaga and Pine Creek areas of Alberta. Further drilling in Alberta will also take place in the Giroux Lake, Windfall, Boundary Lake and Bison Lake areas. In northeastern British Columbia, high-impact exploration is also planned for the Umbach, Altares and Parkland areas, where the company has acquired acreage over the last several months. “The new drilling program is targeting reserve based accumulations of Cretaceous, Jurassic and Devonian natural gas and it is geared toward providing the company with substantial new production volumes at attractive prices, given the recent significant drop in rig utilization and oil field service cost in Western Canada,” Noval said. The multi-well drilling program in Western Canada will complement the company’s strategy of developing large holdings offshore Nova Scotia.

ANR Pipeline Co. is requesting FERC approval of a $42.1 million pipeline looping and replacement project in Walworth and Rock counties, WI. The West Leg project is designed to add 220,000 Dth/d of firm transportation capacity to its system in order to serve new demand from local distribution companies and power generators.

Murphy Oil Corp.’s E&P subsidiary has awarded a contract to J. Ray McDermott Inc. to construct a Floating Production System for the Front Runner Project, designed to handle 60,000 bbl/d and 110 MMcf/d from the Gulf of Mexico. Murphy operates the project and owns 37.5% with partners Dominion Exploration & Production Inc., (37.5%), and Spinnaker Exploration Co., (25%). The Front Runner partners have approved a plan for the development of the area utilizing a Truss Spar type Floating Production System. They continue to evaluate export pipeline options. Targeted first production for the project is the first half of 2004. SparTEC Inc., a wholly owned subsidiary of McDermott, will be the general contractor responsible for the engineering, procurement, construction and installation of the Spar. The Front Runner Project is located in 3,500 feet of water on Green Canyon Blocks 338 and 339 in the Central Gulf, approximately 135 miles south-southeast of Houma, LA. The initial discovery well reached a total depth of 22,925 feet in March 2001.

With the New Year ringing in the launch of retail electric competition in Texas, a key executive with the Electric Reliability Council of Texas (ERCOT) last Wednesday expressed confidence that the state’s transmission system will be up to meeting the demands of electricity deregulation.

Vancouver-based KMS Power Income Fund, through its manager KMS Energy Inc., has announced a 10-month gas swap contract with Nicor Energy LLC, designed to fix prices for a proportion of the natural gas used by KMS Crossroads. The agreement, at a price of $5.07/MMBtu, encompasses 20,000 MMBtu/month, representing about 40% of the average gas consumption at KMS Crossroads.

Plans by the House Energy and Commerce Committee to mark up emergency legislation designed to provide relief to the troubled California wholesale energy markets were delayed last week after last-minute negotiations broke down between Democrats and Republicans over the measure. Members from both sides of the aisle on Friday said that they would continue to try and hammer out a bipartisan solution over the Congressional recess that starts this week.