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Company News

Mergers and Acquisitions

  • Aker Solutions acquired engineering company Sandnessjøen Engineering, located in the Petro Næringshage in Sandnessjøen, Norway. Transaction value was undisclosed. Aker Solutions in Sandnessjøen will continue to be headed by Halvard Lie, former Sandnessjøen Engineering managing director.
  • Centrica reached an agreement with Total E&P UK (and its affiliates) to acquire their nonoperated portfolio of producing oil and gas assets and associated infrastructure in the Central North Sea for a total cash consideration of USD 388 million. Around 20% of the consideration is allocated to UK tax allowances. The oil and gas is mostly uncontracted and linked directly to the UK market.
  • FMC Technologies signed a definitive agreement to acquire Control Systems International. Terms of the transaction, which is subject to further due diligence and various closing conditions, were not disclosed. Founded in 1968, CSI is a supplier of control and automation system solutions. Headquartered in Lenexa, Kansas, with operations in Irvine, California, and London, England, CSI has approximately 150 employees.
  • SandRidge Energy will acquire private Houston independent Dynamic Offshore Resources for USD 1.275 billion, including USD 680 million in cash and 74 million SandRidge common shares. SandRidge said Dynamic had 62.5 million BOE of proved reserves, 80% proved developed, and production of 25,000 BOE/D at yearend 2011 in less than 300 ft of water in the Gulf of Mexico. About 50% of the reserves and production are oil.
  • Beach Energy acquired all the outstanding shares in Adelaide Energy through compulsory acquisition. Beach acquired a relevant interest in Adelaide Energy of approximately 97% during the takeover offer period and, as a result, was able to move to compulsorily acquire the outstanding shares in Adelaide Energy it did not own.
  • PetroChina signed an agreement to buy a 20% stake in the Groundbirch shale gas project, located in British Columbia, Canada, from Royal Dutch Shell. The transaction, for an undisclosed amount, has been approved by both the Chinese and Canadian authorities.

Company Moves

  • TAM International announced a new manufacturing facility to be built in the Houston area. Plans for the state-of-the-art facility include 126,000 ft2 of manufacturing space and 17,000 ft2 of office space. Located on a 26-acre site, it will house up to 300 employees directly involved in the manufacturing process.
  • CETCO Oilfield Services broke ground on a new USD 8 million facility for its coiled tubing division in New Iberia, Louisiana. The facility will include new offices and warehouses totaling 33,000 ft2 of space, and a 6-acre laydown yard. It will add 60 job positions in addition to the 190 new personnel the CETCO Coiled Tubing division has added during the past 2 years. CETCO aims to have the facility operational by the end of 2012.

Contracts and Tenders

  • OIE Services, a maintenance management and recruitment company located in Aberdeen, Scotland, won a new GBP 500,000 contract with Offshore Group Newcastle Limited (OGN Group). OGN Group is building a satellite oil production platform for the UK Forties field to be bridge-linked to the existing Forties Alpha installation in the Apache-operated field, located on the UK continental shelf. OIE Services will undertake responsibility for the maintenance build of the platform, concentrating on safety, environmental impact, and production. Onshore construction is expected to be complete by midyear 2012.
  • Technip was awarded a 5-year frame agreement contract from Petrobras for the supply of around 1,400 km of flexible pipe. The contract is effective immediately, with supply starting in 2013. Orders are guaranteed for at least 50% of the total value, currently estimated to be worth around USD 2.1 billion. The scope of the contract includes the manufacture of more than 150 types and diameters of risers, flowlines, and associated equipment and accessories.
  • Songa Offshore’s 100% owned subsidiary, Songa Rig AS, received and accepted a letter of award from Statoil for two newbuild Cat D semisubmersible rigs. This award follows the agreement of July 2011 between the companies for the first two Cat D rigs. The contract period is for 8 years, with an aggregated value of USD 2.66 billion, with options for extensions of another 12 years (4 times 3 years) per rig. Daewoo Shipbuilding & Marine Engineering in South Korea will build the rigs at a fixed price of USD 570 million per unit, inclusive of optional Statoil upgrades that include Barents Sea winterization and other enhancements. The drilling package will be delivered by Aker Solutions.
  • 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. 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. Under the terms of the contract, Petrofac will provide detailed design, engineering, procurement, construction, precommissioning, commissioning, and start-up work on the Badra development’s central processing facility, comprising three crude oil processing trains. The first phase of the project is expected to come onstream in the second half of 2013.
  • TransCanada announced it will build, own, and operate the Tamazunchale Pipeline Extension in Mexico. Construction of the pipeline is supported by the award of a 25-year natural gas transportation service contract by the Comision Federal de Electricidad, Mexico’s state-owned power company. TransCanada expects to invest approximately USD 500 million in the pipeline and anticipates an in-service date in first-quarter 2014. The project will be 235 km long and have contracted capacity of 630 MMcf/D. The pipeline will use a combination of 30- and 36-in.-diameter pipe and have 37 MW of installed compression.