250,000 BARRELS OF OILVirginia Electric and Power Co. bought 250,000 barrels of 1.3 percent sulfur maximum No. 6 oil for delivery to its Yorktown facility by the end of December at a tender that closed Thursday, a company official said.

He declined to give the purchase price for the oil, but said that it was in the $11-a-barrel area on a fixed basis and that about 10 bids were submitted for the tender.

The official said natural gas delivered to its power plants is 40 cents a million British thermal units cheaper than 1.3 percent fuel oil.

Inventory for both 0.7 percent and 1.3 percent fuel oil is "pretty well set" for the next couple of months, he said. But if electric demand rises and fuel oil prices remain at current levels, Virginia Electric will enter into the spot market in January, he said.



NEW YORK - Sagasco Holdings Ltd.'s wholly owned subsidiary Sagusa Inc. has withdrawn the tender offer for the outstanding shares of common stock of Magellan Petroleum Corp.

The company said the decision follows a reassessment of the values of Magellan's proved and probable gas reserves in the Palm Valley field in the Amadeus Basin of Australia.

The company also reassessed the costs and timing for the recovery and delivery of Amadeus Basin gas reserves, and the likelihood and timing of significant new contracts for the sale of such gas reserves.

''Sagasco has determined that the benefits expected to be derived pursuant to Sagusa's tender offer are likely to be less than previously believed," the company said.

"As a consequence, Sagusa has terminated its tender offer without accepting for purchase or purchasing any shares of MPC common stock," the company said.