One of the most widespread and significant exploratory campaigns in recent years will fire up soon. Merrion Oil & Gas Corp. of Farmington has entered into an option agreement with Santa Fe Energy Co. to wildcat on areas of mutual interest on more than 600,000 acres of Santa Fe-held lands in northwestern New Mexico.

A Santos Ltd. partnership plans to begin producing a Southwest Queensland oil discovery in February. The 1 Bowen, drilled on the Naccowlah block of the ATP 259P license area, flowed 3,400 b/d of 44 gravity oil through a 1/2 in. choke on drillstem test of Jurassic Adori sandstone at 5,4845,514 ft. Oil shows also were present in Jurassic Hutton and Westbourne sands, which will be evaluated by testing before the well is cased and completed.

Patrick Crow Washington Editor The U.S. government will make critical decisions on the future of Outer Continental Shelf leasing this year. And it will do so in a political atmosphere the oil industry finds troubling. Here's the agenda:

Patrick Crow Washington Editor The U.S. government will make critical decisions on the future of Outer Continental Shelf leasing this year. And it will do so in a political atmosphere the oil industry finds troubling. Here's the agenda:

PLAINS PETROLEUM CO., Lakewood, Colo., plans further seismic work to define step-out locations to its Minnelusa strike in the Powder River basin in Crook County, Wyo. MRA-Plains 31-28 Federal gauged 630 b/d of 21.7 gravity oil with no water from pay at 7,018-52 ft. Plains and McAdams, Roux & Associates Inc., Denver, each has a 50% working interest in the discovery and jointly own or control about 400 acres in the immediate area.

Canada's National Energy Board will review its gas export test in the face of mounting political and legal protest. The board this month will reexamine the cost/benefit test it cited last November as a reason for its denial of export licenses covering 533 bcf in proposed shipments to U.S. customers. Western Gas Marketing Ltd., Shell Canada Ltd., Direct Energy Marketing Ltd., and Indeck Gas Supply Corp. were denied the permits.

with Roger Vielvoye from London The booming economies of the countries around the Pacific Rim are the next target for expansionist downstream affiliates of state oil companies of the Middle East. After breaking into the established but slowly growing U.S. and European markets, Saudi Arabia and Kuwait have embarked on a much more demanding task: gaining entry to the highly protected Japanese downstream business.

Oryx Energy Co., Dallas, last week completed the purchase of most of the oil and gas properties it is obtaining from British Petroleum Co. plc for $1.1 billion. With the complete transaction scheduled to add 264 million bbl of reserves, Oryx laid claim to title as the world's largest independent producer (OGJ, Oct. 23, 1989, p. 17). Last week's closings covered Indonesian and most U.K. properties involved in the deal. Scheduled for closing later in this quarter are sales of the

TANKER LOUISIANA, owned by Panhandle Eastern Corp., offloads cargo of Algerian liquefied natural gas at Trunkline LNG Co.'s regasification terminal in Lake Charles, La. Deliveries of Algerian LNG to Trunkline, a Panhandle Eastern subsidiary, resumed last month (OGJ, Jan. 1, p. 19). Copyright 1990 Oil & Gas Journal. All Rights Reserved.

Chevron Corp. has made further restructuring moves, this time focusing on non-U.S. operations. Effective Jan. 1 were the latest measures in a 2 year series of restructuring efforts aimed at sharpening strategies and enhancing business opportunities. Internal studies found the company needed to better integrate and coordinate international strategies. In the latest action, Chevron decentralized its foreign operations staff by moving key staff members into regional line organizations.