Conoco Inc., Houston, is buying Saga UK Ltd. from Norsk Hydro ASA for US$540 million, gaining recoverable reserves of 113.1 million BOE and increasing its U.K. reserves in particular 14%. Daily U.K. gas production will grow 10% and oil production, 30%. Conoco will gain Saga's interests in the Britannia gas field, the largest gas field in the U.K., and the Alba oil field. Conoco will also gain Saga's 25% interest in the Gryphon Field, its interests in the Thistle Area, and 27 exploration licenses covering 2,044 square kilometers in the U.K. North Sea and Atlantic Margin. Lateral Vector Resources Inc., Regina, Saskatchewan, is selling 80% of its 48% direct and indirect interest in the Bugruvativske Field in the Ukraine for US$6.4 million to a nondisclosed, public company. Crosby Capital LLC is exchanging $13.4 million of Dallas-based Aviva Petroleum Inc. senior debt for the general-partner rights and an initial 77.5% partnership interest in Argosy Energy International, which holds Aviva's Colombian properties. Crosby acquired Aviva's senior debt from ING Capital Corp. and the Overseas Private Investment Corp. Aviva will continue the Colombian operations, under contract to Crosby, and control a minority interest. Crosby retains $2.8 million of remaining Aviva senior debt. Shell Sakhalin Holdings BV is acquiring Marathon Sakhalin Ltd.'s 37.5% interest in Sakhalin Energy Investment Co. Ltd. in a trade of Shell UK Ltd.'s 28% interests in the BP Amoco-operated Foinaven Field in the Atlantic Margin in the U.K. Shell currently holds 25% of Sakhalin Energy. Marathon will also acquire from Shell a 3.5% overriding royalty on 100% of the production from eight blocks in the Gulf of Mexico, including the Ursa Field, and reimbursed for its 2000 expenditures on the Sakhalin project. The remaining Sakhalin Energy shareholders, Mitsui & Co. Ltd. (25%) and Mitsubishi Corp. (12.5%), have expressed their support. -Heather H. Read
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