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Company News

Mergers and Acquisitions

  • El Paso Corporation entered into a definitive agreement to sell its exploration and production business, EP Energy Corporation, for approximately USD 7.15 billion to affiliates of Apollo Global Management and Riverstone Holdings, which are joined by Access Industries and other parties. The sale of EP Energy is dependent upon completion of the Kinder Morgan–El Paso transaction, which is expected to close in second-quarter 2012, subject to customary regulatory approvals. The sale of EP Energy is also expected to close about the same time as that transaction.
  • LINN Energy agreed to pay BP USD 1.2 billion in cash for BP’s interests in the Hugoton, Kansas, Jayhawk gas processing plant and associated producing gas fields in Kansas—consisting of about 2,400 wells. Completion of the agreement is subject to closing conditions, including the receipt of all necessary governmental and regulatory approvals.
  • Rosneft closed a deal to acquire a 35.3% stake in Taas-Yuryakh Neftegazodobycha from Sberbank. The value of the deal was set to correspond to the historic cost of the project for Sberbank, equaling USD 444 million.
  • Tenaris purchased from Cameron International the plant, equipment, and other assets related to Cameron’s sucker rod business located in Campina, Romania. The Campina rods mill has a capacity of 500,000 units/year and a workforce of around 60 people. The facility will continue its operation, and all its employees will now join Tenaris.
  • Express Energy Services acquired Wildcat Gas Well Testing. Wildcat, headquartered in Mission, Texas, provides production well testing services in both the Eagle Ford and Marcellus regions. Wildcat’s personnel and assets will continue to work in both south Texas and Pennsylvania.

Company Moves

  • Proserv unveiled a new subsea test and assembly facility—the second building the company occupies at the Birchmoss business complex, near Echt in Aberdeenshire, UK, doubling its capacity. The facility, which spans more than 27,500 ft and has large test pits, has 100% capacity for the design testing, maintenance, and installation of subsea equipment including system integration tests, factory acceptance tests, and tree assembly and blowout preventer recertifications before deployment offshore or subsea.
  • Baker Hughes will open a regional headquarters in Massillon, Ohio, in the heart of the state’s Utica shale region. The company plans to invest USD 340 million in the project, scheduled for completion in 2013. Baker Hughes will hire local scientists, engineers, and mechanics to staff the center’s laboratories and workshops and is expected to hire 700 people at the facility and utilize a 6%, 7-year job-creation tax credit for the project.
  • UTEC Survey opened a new office in Dubai, United Arab Emirates, which will focus on providing UTEC with a stronger presence in the Middle East and Caspian regions. UTEC Survey is an independent offshore survey company providing a wide range of survey services, including dimensional control, laser scanning and modeling, offshore positioning, construction support, and geophysical and geotechnical surveys.
  • The Baker Hughes Dhahran Research and Technology Center opened its doors with a focus on research and development of new technologies to unlock the potential of unconventional resources. The newly constructed technology and research center is the result of years of planning and a partnership between Baker Hughes and Saudi Aramco. The center is located at the King Abdullah bin Abdulaziz Science Park at Dhahran Techno-Valley, Saudi Arabia.

Contracts and Tenders

  • Deepwater mooring specialist First Subsea has been awarded a contract by Technip USA to supply the mooring line connectors for a new spar platform moored in 7,000 ft of water in the Lucius field, Keathley Canyon Block 875, in the US Gulf of Mexico. The Lucius spar will be moored by nine Ballgrab ball and taper mooring connectors attached to polyester mooring lines.
  • Petrofac was awarded a USD-330-million lump-sum engineering, procurement, and construction contract by Gazprom Neft Badra for the first phase of the Badra Oilfield Development Project in Iraq, expected to come on stream in the second half of 2013. The competitively tendered project will commence shortly and be completed in three 18-month phases, with final completion scheduled during the second half of 2015.
  • Santos awarded Technip a flexible pipe supply contract for the Fletcher Finucane oilfield development in Western Australia. The field is located in the offshore Carnarvon basin at a water depth of 160 m. The contract, which includes project management, engineering, and the supply of 31 km of 10.2-in. and 9-in. production flowlines, along with 22 km of 3-in. service lines, started in April, with delivery planned for the second half of 2012.
  • EMAS AMC, the subsea division of Ezra Holdings, was awarded a contract by Apache Energy to perform subsea transport and installation work for the Coniston Field Development, located in northwest Australia. The base scope for the contract works is currently approximated to be up to USD 70 million, with various potential add-on work scope options of up to USD 30 million in additional contract value.
  • Statoil is preparing an invitation to tender for new jack-up rigs, known as Category J, able to operate at water depths from 70 to 150 m and drill wells down to 10,000 m. Statoil will ask for offers for a minimum of two rigs at an estimated cost of USD 450 million to 500 million each. The invitation to tender will be issued in July, and the contracts will be awarded in the second half of 2012. The rigs will be delivered in the second half of 2015.
  • Cal Dive International was awarded a contract by Pemex Exploración y Producción for the installation of a 20-in. subsea pipeline located in the Abkatun Pol Chuc field in the Gulf of Campeche in 240 ft of water. The contract is expected to generate total revenue of approximately USD 46 million. The offshore construction is expected to commence in second-quarter 2012.