Mergers and Acquisitions
- China National Offshore Oil Company (CNOOC) subsidiary, CNOOC Southeast Asia, sold CNOOC Offshore Northwest Java (ONWJ) to EMP International for consideration of approximately
USD 212 million. CNOOC ONWJ holds a 36.7205% working interest in an Indonesian Production Sharing Contract (PSC) operated by PT Pertamina Hulu Energi ONWJ. At yearend 2010, the company’s share of net proved reserves in the ONWJ PSC was 22.26 million BOE, and daily average production for the first nine months of 2011 was about 62,000 BOE with net entitlement to the company of approximately 14,000 BOEPD.
- Shell and PetroChina’s Australian joint venture secured approval from Australia’s foreign investment watchdog and Chinese regulators for its AUD 535 million offer for Bow Energy. Bow shareholders voted to approve the company’s acquisition by Arrow Energy Holdings, which Shell and PetroChina jointly acquired more than a year ago.
- Det Norske Veritas (DNV) acquired 74.3% of KEMA’s shares. DNV KEMA will consist of all 1,800 KEMA employees and 500 employees from DNV’s renewable energy and sustainability activities. Alliander retains its holding (25.4%) as does Cogas (0.3%). The transaction is subject to US, Dutch, and German competition authority approval.
- Mustang, a Wood Group company, acquired a majority stake in ISI Solutions for an initial consideration of USD 5.2 million. ISI, to be rebranded ISI Mustang, has approximately 240 employees in Argentina, Bolivia, Chile, Colombia, Mexico, and Peru. ISI Mustang will operate within Mustang’s automation and control business.
- Matmown signed a series of agreements with TX Oil Corp., Harmony Exploration, and stockholders of TX Oil, pursuant to which Harmony will transfer certain oil and gas interests to TX Oil and Matmown will acquire all the equity interest of TX Oil. The acquisition allows Matmown to control, under a working interest, USD 26,578,000 (representing undiscounted future net cash flow) of proved reserves, nine wellbores, all associated above and below ground equipment, and 812 acres of mineral leases in the Eagle Ford Shale, Austin Chalk, Georgetown, and Buda formations of central Texas.
- CNOOC Luxembourg, an indirect wholly owned subsidiary of CNOOC, acquired OPTI Canada, a Calgary, Alberta‑based company focused on developing major oil sands projects in Canada. Total value of the consideration is approximately USD 2.1 billion.
- Japan’s Mitsubishi entered a joint venture to construct liquefied natural gas (LNG) facilities in Iraq to boost natural gas recovery and initiate LNG exports to Japan by 2020. Mitsubishi will have a 5% stake in the project, with an estimated investment of USD 910 million. Iraq’s state-owned South Gas Company and Shell will have 51% and 44%, respectively.
- Nexen is selling a 40% working interest in its Horn River Basin properties, near Fort Nelson, British Columbia, Canada, in a USD 700 million joint venture deal with Japan’s Inpex, including plans for a new LNG plant on the Canadian West Coast.
Contracts and Tenders
- Iraq awarded a USD 640 million deal to Baker Hughes to drill 60 wells in the southern Zubair oil field. The Iraqi Cabinet approved the Oil Ministry’s request to award the three-year contract to the US company. Eni, Occidental Petroleum, and South Korea’s KOGAS have signed a 20-year deal with Iraq to develop Zubair, with an eventual output target of 1.2 million BOPD.
- Saipem was awarded engineering and construction (E&C) contracts worth about USD 1.3 billion onshore in the Middle East and North Africa regions. Etihad Rail awarded Saipem and joint venture partners Dodsal Engineering and Construction and Maire Tecnimont an E&C contract for a 260-km railway track linking the Shah and Habshan fields to the United Arab Emirates Port of Ruwais. Saipem, with Bouygues Travaux Publics and Bouygues Maroc, secured an engineering, procurement, and construction contract with Tangier Mediterranean Special Agency for the expansion of Morocco’s Port of Tangier.
- MicroSeismic was awarded a USD 5.7 million contract by Whiting Petroleum for microseismic monitoring of Whiting’s hydraulic fracturing operations in the US Williston Basin. The contract includes monitoring of all Bakken and Three Forks wells over a 157-sq-mile area in Sanish Field, North Dakota.
- FMC Technologies’ Australian subsidiary signed an agreement with Chevron Australia for the design, manufacture, and supply of subsea production systems to support the Wheatstone project offshore Western Australia. The contract has an approximate value of USD 325 million in revenue to FMC. FMC’s scope of supply includes 11 subsea production trees, 11 wellheads, three manifolds, subsea and topside controls, and well access systems.
- Oceaneering International secured a three-year field support vessel services contract from BP. Oceaneering will provide project management, engineering, and vessel services offshore Angola on blocks 18 and 31, commencing 1 February. The contract provides for two option periods of one year each, exercisable by BP.
- Tendeka secured a major frame agreement with Statoil for the provision of sand screens and inflow control devices and services for use on the Norwegian Continental Shelf. The contract, with an undisclosed value, is for an initial three-year period with a further two optional extensions, each of two years. Tendeka’s scope of work includes the provision of sand screens with associated inflow control technology and services, to be deployed on the Troll field.
- Aegion subsidiary, The Bayou Companies, was awarded a contract to coat approximately 80 miles of 16-in. and 18-in.-diameter oil and gas pipelines for the Shell Mars B US Gulf of Mexico deepwater development. Bayou has begun inner- and outer-diameter coating, concrete weight coating, and anode and buckle arrestor installation for the project.