Mergers and Acquisitions
- China’s Sinopec agreed to pay USD 1.5 billion for 49% of Talisman Energy UK, effectively making Talisman Energy UK a joint venture between Sinopec and Talisman. It is planned that the joint venture will invest to improve ongoing operating performance. The move will also reduce Talisman’s share of capital spending, production, and abandonment liabilities for its UK business.
- Enteq Upstream, a provider of upstream oil and gas technology and products, acquired KM Services and Pro-Flow Fabrication Technologies. The acquired companies will now be jointly known as Enteq KMS.
- Noble Energy signed a definitive agreement to sell certain oil and natural gas properties in western Oklahoma and the Texas panhandle to Unit Petroleum Company, a wholly owned subsidiary of Unit Corporation, for USD 617 million. The properties include Noble’s interest in about 900 producing wells on about 84,000 net acres.
- Aker Solutions acquired the Norwegian companies Subsea House and SSH Engineering and plans to further expand and recruit 50 to 100 people in Stokke, located an hour southwest of Oslo in the Vestfold county of Norway. The acquired companies’ background is within development, assembly, testing, and refurbishment of subsea tools and products. The acquisition is expected to be finalized in third-quarter 2012, subject to approval from the Norwegian Competition Authority.
- Pacific Rubiales Energy completed its acquisition of PetroMagdalena Energy, which has working interests in 19 properties in five onshore basins in Colombia. Pacific Rubiales acquired all the outstanding PetroMagdalena common shares not already owned by it or its affiliates for USD 1.60 per share (about USD 225 million in the aggregate).
- Integrated Drilling Equipment, a vertically integrated drilling rig manufacturer certified by the American Petroleum Institute, acquired S&P Drives Automation Controls (S&P DAC). S&P DAC will now be known as International Electric Company Automation and Controls.
- CNOOC agreed to buy Canadian oil producer Nexen for USD 15.1 billion in cash, offering a 61% premium to Nexen’s closing NYSE stock price on 20 July. It also pledged to retain all employees and make Canada home base for its western hemisphere operations. Nexen has oil sands operations in the Canadian province of Alberta, shale gas in the province of British Columbia, and extensive exploration and production holdings in the North Sea, US Gulf of Mexico, and offshore west Africa. CNOOC already has a number of cooperation deals with Nexen. Canada’s government can review and block any foreign investment worth more than CAD 330 million if it thinks a deal is not in Canada’s best interests.
- Shell, the current owner of 4.1% of the shares in Gasnor, signed a share purchase agreement for the acquisition of the remaining outstanding shares in the company for USD 74 million. The transaction is expected to close in third-quarter 2012, subject to Norwegian regulatory approvals. Gasnor has three small-scale liquefied natural gas production plants and distribution assets, including two tanker ships, a fleet of trucks, and a network of terminals.
- BP agreed to sell its minority stakes in two North Sea fields to Japanese trading company Mitsui for USD 280 million. Mitsui will buy a 13.3% stake in the Alba field and an 8.97% stake in the Britannia field in the cash deal. BP also agreed to sell its stake in a Wyoming natural gas field to Linn Energy for USD 1.03 billion. This deal includes the Jonah and Pinedale operations.
- Petronas, Malaysia’s state-owned oil company, launched a CAD-4.8-billion takeover of its Canadian joint-venture partner, Progress Energy Resources, to gain control of shale gas reserves in British Columbia’s Montney tight gas region as well as Alberta’s Deep basin and, in addition, advance plans to ship the fuel to Asian markets. Including debt, the deal is valued at about CAD 5.5 billion. The deal needs to win the approval of Progress Energy’s shareholders, competition authorities, and Canada’s government.
- Merrick, a provider of information technology solutions for the oil and gas industry, opened a wholly owned subsidiary, Merrick Norway, in Oslo. Merrick Norway will serve primarily to handle the company’s business in Europe, and sell its software and related services and support to the company’s local clients, business, and partner network.
Contracts and Tenders
- A framework agreement executed early July between five Polish companies—PCNiG, ENEA, KGHM Polska Miedz, PGE, and TAURON Polska Energia—is intended to help accelerate shale gas exploration work. In accordance with the agreement, estimated expenditure on gas exploration, appraisal, and production at the first three pad locations (Kochanowo, Czestkowo, and Tepcz) will amount to PLN 1.72 billion.
- Expro was awarded a USD-3.4-million, 2-year contract working on the Who Dat project, in the US Gulf of Mexico, for LLOG Exploration. Expro will provide subsea test trees for the project on the Mississippi Canyon (Block 547).
- Apache Energy awarded Technip a subsea installation contract worth about AUD 60 million for the Balnaves oilfield development, located in the Carnarvon basin, offshore north Western Australia, at a water depth of about 135 m. The contract includes the project management, design, engineering, and installation of 7 km of flexible flowlines and risers; 3 km of umbilicals; manifolds, spools, flying leads, and jumpers; a mooring system; and a riser column.
- Petrobras subsidiaries Tupi and Guará, together with consortium members BG Group, Petrogal Brasil, and Repsol Sinopec Brasil, gave the go-ahead for 10 contracts totaling USD 4.5 billion for the construction of the first six topside modules (processing plant, utilities, and living quarters) for eight identical floating, production, storage and offloading units to be constructed in Brazil for presalt projects in Santos basin Blocks BM-S-9 and BM-S-11. The following companies will be awarded contracts: D M Construtora de Obras/TKK Engenharia, IESA Oleo e Gas, Tome Engenharia SA/Ferrostaal Industrieanlagen, Keppel FELS do Brasil, Jurong do Brasil Prestação de Serviços, and Mendes Jr Trading Engenharia/OSX Construção Naval.