Mergers and Acquisitions
- Midstates Petroleum closed on its USD-650-million move to buy all of Tulsa-based Eagle Energy’s oil and gas properties. The deal, announced in August, includes Eagle’s developed and undeveloped acreage primarily in the liquids-rich Mississippian Lime trend of northern Oklahoma and southern Kansas. The overall properties, in the Mississippian and Hunton plays, contain 114 gross producing wells spread out over 103,000 net acres.
- Canada blocked Malaysian state oil firm Petronas’ CAD-5.17-billion bid for gas producer Progress Energy Resources. Under the Investment Canada Act, the companies have 30 days to make adjustments to the bid. Petronas responded by agreeing to the Canadian government’s extension of a review of its bid.
- Rosneft will acquire TNK-BP for USD 55 billion. BP will remain a one-fifth shareholder in the state-controlled company. The acquisition is subject to Russian government approvals. Part one of the Kremlin-backed deal folds BP’s half of TNK-BP, Russia’s third-largest oil firm, into Rosneft. In exchange, BP receives USD 12.3 billion in cash and 18.5% of Rosneft, raising its holding to 19.75%. In stage two, BP’s 50-50 partner in the TNK-BP venture, AAR, would receive USD 28 billion.
- ExxonMobil agreed to purchase Celtic Exploration by paying CAD 2.86 billion in stock and cash, thereby incorporating 545,000 total acres in the Montney shale along with 104,000 acres in the Duvernay shale, Canada. The deal has been approved unanimously by the board of Celtic.
- Lanzhou Haimo Technologies’ subsidiary Haimo Oil & Gas will buy a 14.29% stake in Houston-based Carrizo Oil & Gas’ Niobrara shale oil and gas assets in Colorado for USD 27.5 million. Under the agreement, the Chinese company will acquire around 6,000 acres located primarily in Weld and Adams counties, as well as associated infrastructure, including oil and gas wells.
- Ecolab agreed to purchase Champion Technologies, a Houston-based specialty chemical company for the energy industry, and its affiliate Corsicana Technologies, another specialty chemical organization, for USD 2.2 billion. Ecolab will pay for Champion with a mix of 75% cash and 25% stock—about USD 1.7 billion in cash and 8 million shares of its stock.
- Norwegian oilfield services firm Aker Solutions opened a new subsea service base in Malaysia. The new service base is in Labuan Federal Territory in Eastern Malaysia, located off the northwest coast of Borneo, north of Brunei Bay and facing the South China Sea. The facility covers 13 680 m2, with a workshop of 1296 m2 that has a 75-tonne overhead crane and pressure-testing capabilities of up to 15,000 psi. An 18-person team is currently employed at the Labuan base.
- Ashtead Technology Offshore, an international subsea equipment solutions specialist, moved to new global headquarters in Westhill, Aberdeen. The new facility doubles the company’s capacity, incorporating offices, warehouse, maintenance workshops, and a specialized calibration laboratory, representing a GBP-750,000 investment. Ashtead Technology has recruited 15 new staff in 2012 and the new base will enable further recruitment plans in 2013.
- International energy consultancy Xodus Group invested GBP 2 million in launching a Middle East operation in Dubai. An initial team of 19 will be based in the company’s new office in the Jumeirah Lake Towers area.
- Baker Hughes plans to build a USD-50-million education facility on roughly 100 acres at its Tomball, Texas, campus. The Western Hemisphere Education Center will be used to train oilfield and oil-rig workers on new and existing drilling technology. Between 50,000 and 70,000 students per year are expected to use the facility. It will have outdoor training facilities as well as indoor classrooms and dormitories for students. The facility will be constructed in two phases, with the first getting under way at the end of this year or the start of 2013.
Contracts and Tenders
- Murphy Exploration & Production Company–USA awarded Technip a lump-sum contract for the development of the Dalmatian field, located in the Gulf of Mexico, at a water depth ranging from 1,739 to 5,906 ft. The project consists of a subsea tie-back to an existing Gulf of Mexico platform. The contract covers project management, engineering, fabrication, and installation of a gas riser, an oil riser, a 24-mile flowline, and a 21-mile pipe-in-pipe flowline with associated pipeline end terminations and jumpers; installation of a main subsea-control umbilical, infield umbilical, and associated foundation and flying leads; and pre-commissioning.
- Subsea 7, a global company specializing in seabed-to-surface engineering, construction, and services to the offshore energy industry, announced BP has extended its contract for subsea construction, inspection, repair, and maintenance services primarily for BP’s operations in the Foinaven and Schiehallion fields, west of Shetland, as well as support for BP assets elsewhere in the North Sea. The 5-year contract extension is valued at approximately USD 300 million and will run until 2017.
- China’s Ministry of Land and Resources received 152 bids for 19 of 20 shale gas blocks offered through a tender process that opened in September. By the deadline, 83 companies qualified for the tender process. This is the first time China has opened its tender process to foreign companies. The blocks span 7,723 sq miles.
- Framo Engineering, a Schlumberger company, announced a USD-200-million contract from Total E&P Angola for the supply of a subsea multiphase pumping system for the Girassol Resources Initiatives Project. The multiphase pump system, which will be installed in Block 17 offshore Angola at some 1350 m water depth, will boost the rates from two production flow loops. The contract covers the complete system of topside power and control and two subsea pump modules. Delivery is planned for summer of 2014.
- Iraq’s South Oil Company awarded CH2M Hill a USD-170-million consultancy contract for a plan to inject water into southern Iraq oil fields to help further boost crude production. CH2M Hill replaces ExxonMobil for the project to inject seawater mainly into the Rumaila, Zubair, and West Qurna oil fields.