Judges vacates order against Nalco in oil dispute

An order won by Baker Hughes Inc. that prevents Nalco Holding Co. from testing a process at a Sunoco Inc. refinery in Philadelphia was thrown out by an appeals court today.

The U.S. Court of Appeals for the Federal Circuit, in a notice today on its Web site, said the Sept. 11 order was vacated and the case was remanded to a federal judge in Houston. The appeals court, located in Washington, specializes in U.S. patent law.

U.S. District Judge Kenneth Hoyt in Houston had said that Nalco can't use a specific method to remove impurities such as calcium from crude oil that are similar to a process described in a Baker Hughes patent. The order was to remain in effect until a trial can be held on the dispute.

Baker, the world's third-largest oilfield-services provider, claimed Nalco is trying to steal Sunoco as a customer while using Baker's patented process. Houston-based Baker sued Nalco in June, asking the judge to block it from using the process. In granting that request, Hoyt said Baker was likely to win its patent-infringement claims against Nalco.

Nalco, based in Naperville, is the world's biggest maker of water-purification equipment and is partly owned by Warren Buffett's Berkshire Hathaway Inc.

Sunoco's Philadelphia refinery has a capacity of 330,000 barrels a day, according to data compiled by Bloomberg.

Schlumberger Ltd. is the world's biggest oilfield-services provider, followed by Halliburton Co.

The case is Baker Hughes Inc. v. Nalco Co., 09-cv-01885, U.S. District Court, Southern District of Texas (Houston).