Mergers and Acquisitions
- Argentine lawmakers gave final approval to a bill allowing President Cristina Kirchner to seize a 51% stake in the country’s largest oil and gas producer, YPF, from Spain’s Repsol YPF. The Lower House approved the legislation, with 207 of its 257 members voting in favor of nationalizing YPF. Repsol’s stake in YPF was reduced from 57.4% to about 6%. Repsol is contesting the takeover.
- Cairn received all required approvals and completed the acquisition of Norwegian company Agora Oil & Gas. Total consideration is approximately USD 453 million, satisfied through a combination of approximately USD 196 million in cash (43.3%) and 47,662,603 Cairn shares (56.7%).
- Marathon Oil agreed to acquire Paloma Partners II for around USD 750 million in cash. Paloma II, a private oil and gas exploration and production (E&P) company, owns around 17,000 acres in the Eagle Ford shale in south Texas. Its net production as of 1 April was roughly 7,000 BOE/D. The transaction is expected to close in third-quarter 2012.
- Tesco Corporation and Schlumberger signed a definitive agreement whereby Schlumberger will acquire Tesco’s Casing Drilling Division for USD 45 million in cash. In addition, Schlumberger and Tesco entered a long-term supplier agreement in which Tesco will sell and lease its Casing Drive System equipment to Schlumberger to support Casing Drilling projects.
- FMC Technologies completed the transaction to acquire the remaining 55% of the outstanding shares of Schilling Robotics, increasing its ownership to 100%. Schilling produces remotely operated vehicles (ROVs), ROV manipulator systems, control systems, and other high-technology equipment and services for oil and gas subsea E&P.
- Halcón Resources bought GeoResources at a value of roughly USD 1 billion in a cash and stock offer that will more than double its oil and gas reserves. Halcón will pay USD 20 in cash and a stock conversion of 1.932 of its shares for each share of GeoResources. The deal, approved by the boards of both companies, still needs shareholder approval. Both companies expect to complete the merger in third-quarter 2012.
- Shell agreed to buy Cove Energy after raising its bid to USD 1.8 billion, securing a stake in gas fields discovered off Mozambique. The board of London-based Cove agreed to the Shell bid.
- Cameron agreed to acquire the drilling equipment business of TTS Energy Division from TTS Group in an all-cash transaction valued at USD 270 million. The transaction, subject to customary closing conditions, including review and approval by the Norwegian Competition Authorities, is expected to close during mid-2012. TTS Energy products include drilling rig control systems, top drives, traveling blocks, automated pipe handling, iron rough necks, drawworks, derrick structures, drill floor tools, fingerboards, blowout preventer handling equipment, deadline anchors, and drill line spoolers.
- Carbo Ceramics will begin construction on the first production line of a ceramic proppant manufacturing plant in Millen, Georgia, USA, by yearend 2012. Operations could begin near yearend 2013. The plant will be situated on 450 acres close to truck and rail lines. The site has the ability to expand to four production lines.
- TMK IPSCO, the North American division of pipe manufacturer TMK, began development of a new 69,000-ft2 facility located on 37 acres on the eastern border of Odessa, Texas. Consisting of two main buildings, the new facility will host pipe connection manufacturing, including pipe preprocessing and threading.
- GE Energy is investing USD 10 million in the development of a new oil and gas training facility in Houston. Scheduled to open in fourth-quarter 2012, the 50,000‑ft2 facility will be GE’s premier oil and gas training facility in the US. GE’s Drilling Systems business is headquartered at the same location.
Contracts and Tenders
- Seadrill received a letter of award for a 5-year contract for the tender assist rig T18 by Chevron Thailand E&P. Commencement of operations is scheduled for first-quarter 2014, following the delivery to Chevron of tender assist rigs T15 and T16 during 2013. Estimated value of the contract is approximately USD 235 million.
- Oceaneering International secured a contract from Petrobras to supply approximately 125 miles of thermoplastic production control umbilicals for field development projects offshore Brazil in the Santos basin. The contract has added over USD 120 million to Oceaneering’s subsea products backlog.
- WorleyParsons was awarded a 4-year contract by Joint Operations, which is staffed and funded equally by Kuwait Gulf Oil Company (representing the state of Kuwait) and Saudi Arabian Chevron (representing the kingdom of Saudi Arabia), to provide engineering, project management, and construction management services to maintain and boost production from the onshore oil fields located in the partitioned zone between Kuwait and Saudi Arabia. The contract will be executed from WorleyParsons’ offices in Kuwait, the UK, and India. Estimated revenue to WorleyParsons from the contract is in excess of USD 90 million.
- Keppel signed a USD-4.12-billion deal to build five oil rigs in Brazil. Keppel signed a letter of intent to construct five semisubmersible rigs for Sete Brasil, to be built in a Brazilian yard Keppel set up in 2000.
- Aker Solutions was awarded a contract worth approximately USD 82 million by Total E&P Angola. The scope of work includes the delivery of seven production subsea trees, seven wellhead systems, and seven well jumper systems to the Dalia field offshore Angola and may include some contract options.
- Bergen Group Offshore, through its subsidiary Bergen Group Rosenberg, was awarded the contract for the hookup of ConocoPhillips’ new Ekofisk 2/4L platform. The contract value for the project is about USD 30.5 million and will generate activity during 2012 and 2013.