Mergers and Acquisitions
- ConocoPhillips sold its Cedar Creek Anticline properties in southwestern North Dakota and eastern Montana to Denbury Resources for USD 1.05 billion. ConocoPhillips also sold its Nigerian business unit to Oando for USD 1.79 billion, including offshore assets—a 95% operated interest in OML 131 (Chota field) and a 20% nonoperated interest in OPL 214 (Uge field). The deal also involves a power plant and the Brass liquefied natural gas project.
- ExxonMobil Exploration and Production acquired a 75% operating interest in the Tugela South Exploration Right from Impact Oil and Gas. Tugela South covers about 2.8 million acres offshore Durban on the east coast of South Africa. ExxonMobil also executed a separate technical cooperation permit with the South African government for exclusive rights for 1 year to study 12.4 million acres in the Durban Basin.
- Hyperdymanics subsidiary SCS sold a 40% gross interest and transferred operatorship of its oil and gas exploration offshore Guinea to Tullow Oil for USD 27 million. The interests in the concession are now SCS (37%), Tullow (40%), and Dana Petroleum E&P (23%).
- Private investor Carl C. Icahn acquired the equivalent of 12.6 million total shares or 3.4% of Transocean’s outstanding shares for approximately USD 705.6 million. Icahn and his affiliates now hold 1.56% of the Switzerland-based company’s issued shares, with a synthetic long position that includes options to acquire shares representing 1.7% of issued shares.
- Chevron acquired a 50% operating interest in the Kitimat liquefied natural gas (LNG) project and proposed Pacific Trail Pipeline from EOG Resources and Encana. Chevron will also purchase 110,000 net acres in the Horn River Basin from Encana, EOG, and Apache, and 212,000 net acres in the Liard Basin from Apache. EOG and Encana each received about USD 450 million for their stakes in the project and the acreage. Chevron and Apache will now each hold a 50% interest in the LNG project, the pipeline, and the feedstock acreage.
- Construction will begin this year on ExxonMobil subsidiary Esso Highlands’ permanent head office in Port Moresby, Papua New Guinea. The 6.9-million-tonnes-per-year project, with an expected peak workforce of 360, includes natural gas liquefaction and storage facilities and will be brought on stream in 2014.
- Santos opened a new office in Narrabri, New South Wales, Australia. Santos employs about 30 people in the Narrabri area, which is in the northwestern area of the state.
Kinder Morgan Energy Partners is expanding its Houston Ship Channel liquids storage and docking services. The company will purchase 42 acres, build a ship dock for ocean-going vessels, and build 1.2 million bbl of liquids storage tanks with connectivity to its Galena Park terminal and the refiner.
Contracts and Tenders
- BP awarded a contract to Babcock International Group for a new floating production, storage, and offloading (FPSO) system to replace the Schiehallion FPSO and extend the existing subsea system with flow lines and risers, and 14 new wells. The final structure will be completed in 2015.
- Pemex awarded McDermott International a turnkey contract valued at USD 230 million for the PB-Litoral-A production platform in the Litoral Tabasco Tsimin-Xux fields in the Gulf of Mexico. McDermott will also perform bridge and piping tie-in, brownfield work on the PB-Litoral-A compression platform, and train Pemex personnel for operation and maintenance.
- Petrobras awarded GE Oil and Gas a contract valued at USD 500 million to supply turbomachinery equipment and services for four new FPSO units. GE will equip FPSOs P-74, P-75, P-76, and P-77 with gas turbines and generators in the Cessão Onerosa region of the Santos Basin pre-salt fields offshore São Paulo. The contract also provides for technical assistance for installation, startup, repair, and dedicated field service and training.
- Chevron awarded a contract to Acteon subsidiary Pulse Structural Monitoring to provide integrated monitoring on the Big Foot extended tension leg platform in the Gulf of Mexico. Pulse will use a product line of modular sensing instrumentation tools for integrated real-time data processing and transmittal to shore.
- The government of Iraq approved a USD-879-million service contract with Samsung Engineering for the development of the Badra oil field. Russia’s Gazprom Neft (40%), South Korea Gas (30%), Malaysia’s Petronas (20%), and Turkish Petroleum (10%) will develop the field near the Iran border. Samsung will design and build the second phase of a central processing facility for oil production from the field, from which initial production is expected to be 15,000 B/D.
- China’s CIMC Raffles awarded turnkey construction contracts worth USD 1.3 billion to Frigstad Deepwater for two ultradeepwater semisubmersible drilling units, with options for four additional rigs. The semisubmersibles are seventh-generation, D90 models capable of drilling in water depths of up to 12,000 ft and total depth of 50,000 ft.
- Plains Exploration and Production farmed in to Pura Vida Energy’s 75% interest in the 2.7-million-acre Mazagan permit area offshore Morocco. Plains is paying USD 15 million for a 52% operating interest in exchange for funding 100% of specified exploration activities up to USD 215 million. The permit is in the Essaouira Basin and includes the Middle Miocene and Lower Cretaceous prospects, comprising estimated gross unrisked mean prospective recoverable resources of 7 billion bbl.
- BHP Billiton Petroleum awarded a 5-year, USD-52-million contract to Mermaid Marine Australia for offshore marine support to its floating operations off the northwest coast of Western Australia.
- Maersk Oil UK awarded a 3-year, USD‑4.8-million contract to Intertek for offshore chemists and onshore laboratory analysis support. Job scope includes sample gathering and testing to monitor process systems and chemical injection for Maersk’s North Sea operations.