Mergers and Acquisitions
- Abu Dhabi National Energy Company (TAQA) agreed to buy from BP oil and gas assets in the UK North Sea worth more than USD 1 billion. The acquisition consists of interests in the Harding (70%), Maclure (37.03%), and Devenick (88.7%) fields in the central North Sea. TAQA will also increase its nonoperated interests in the Brae area and associated transport infrastructure including the SAGE system, Forties-Brae, and Forties-Braemar pipelines. Total consideration for the transaction is USD 1.058 billion, plus certain potential contingent payments. The transaction is expected to complete in second-quarter 2013.
- ZaZa Energy entered into a definitive share-purchase agreement with Vermilion Energy, whereby Vermilion, through its wholly owned subsidiary Vermilion REP, will acquire 100% of the shares of ZaZa Energy France (ZEF) for a purchase price of about USD 85.8 million, subject to customary closing adjustments. ZEF’s operating interests cover about 24,300 acres and 100% working interests in the Neocomian Complex and Charmottes fields in the Paris Basin.
- Nexen and China National Offshore Oil Corporation (CNOOC) have withdrawn and resubmitted their application to the Committee on Foreign Investment in the United States (CFIUS) to approve CNOOC’s proposed USD-15.1-billion takeover of Canada-based exploration firm Nexen. The companies have resubmitted to the CFIUS a Joint Voluntary Notice related to the acquisition. The closing of the arrangement is still subject to the receipt of applicable government and regulatory approvals, including authorities in the US, Canada, the European Union, and China. Other customary closing conditions also must be satisfied or waived.
- Aker Solutions is buying Canadian asset integrity management (AIM) company Thrum Energy. The acquisition will grow Aker Solutions’ AIM portfolio and increase the company’s presence in the Atlantic Canada market. Thrum Energy is a St. John’s, Newfoundland-based AIM company that provides a diverse portfolio of quality services to both onshore and offshore assets in Canada.
- The Russian government has given its approval for state-controlled Rosneft to buy 100% of TNK-BP from BP and the AAR consortium of Russian billionaire shareholders. Under the terms of the deals announced in October, BP will receive USD 17.1 billion in cash for its 50% stake plus stock representing 12.84% of Rosneft’s shares, while the AAR consortium of Russian shareholders will sell its 50% stake in the joint venture for cash consideration of USD 28 billion.
- Kongsberg Oil & Gas Technologies (KOGT), a wholly owned company of Kongsberg, entered into an agreement to acquire 100% of the shares in Advali. The acquisition will strengthen KOGT’s capabilities and efficiency in software development, testing, and support. Advali, founded in Norway in 1997, established facilities in Bangalore, India, in 2003, focusing on software development and testing. All 120 employees are now based in Bangalore.
- Curtiss-Wright Corporation acquired Cimarron Energy, through the acquisition of its parent company Cimarron Energy Holding Company, for about USD 135.1 million in cash. Cimarron is a leading manufacturer of highly customized and engineered energy production, processing, and environmental solutions for the US oil and gas industry. The business will become part of Curtiss-Wright’s Flow Control segment.
- Elliott Group opened a regional office in Abu Dhabi, United Arab Emirates, to support demand for Elliott equipment and services in the Middle East. The office extends Elliott’s presence in the region and expands its ability to offer local sales and service support. Elliott designs, manufactures, and services centrifugal compressors, steam turbines, power recovery expanders, and axial compressors used in the petrochemical, refining, oil and gas, and process industries, as well as in power applications.
- Weatherford International opened a new, four-story multimillion-dollar facility in Singapore, which will provide a base for the company’s operations within the Asia Pacific region. The base, which brings together the country’s 300-strong workforce under one roof for the first time, incorporates manufacturing and technology, assembly and test, repair and maintenance, and warehouse facilities as well as administrative and office space. The facility can house up to 400 employees.
VAM USA opened a new field service office in San Antonio, Texas. The 4,800‑ft2 facility warehouses complete sets of VAM service tools and crossover rentals, and provides connection inspections and wellsite running assistance.
Contracts and Tenders
- Cameron received an order from STX Offshore & Shipbuilding, totaling about USD 275 million, to supply a complete drilling equipment package for a 12,000-ft ultradeepwater drillship. STX Offshore & Shipbuilding has a contract to build a new drillship from Sigma Drilling, of which Vantage Drilling is a partner. This order represents Cameron’s first complete rig package for a new-build drillship.
- Subsea 7 was awarded a 2-year extension on both its underwater services contracts by Shell Upstream International Europe, worth approximately USD 360 million. Under the contracts, Subsea 7 will continue to provide subsea construction, inspection, repair, maintenance, and decommissioning services across Shell’s European offshore fields and facilities.
- BP, via the Rumaila Operating Organization, awarded a contract to a joint venture run by Petrofac and China Petroleum Engineering & Construction Corporation. The 3-year contract, which came into effect late 2012, covers inspection, maintenance, and repair of degassing stations, rotating machinery, and cluster pumping stations at the Rumaila oil field in southern Iraq. The deal is worth USD 229 million to the joint venture.
- One of McDermott International’s subsidiaries was awarded two projects by Saudi Aramco in the Abu Safah, Marjan, and Safaniya fields in the Arabian Gulf. The two projects consist of six topsides and a bridge that connects to the existing Marjan facilities. In addition, the projects will require other associated modifications and brownfield work. The combined total weight of the structures will exceed 4,000 tonnes.