Mergers and Acquisitions
- CE Franklin will be bought by National Oilwell Varco (NOV) for about CAD 233.08 million in cash. CE Franklin’s largest shareholder, Schlumberger, has agreed to vote for the buyout. The acquisition marks the end of CE Franklin’s strategic review process and effectively terminates the shareholders’ rights plan it adopted in April.
- Forestar Group will buy Credo Petroleum for USD 146 million in cash, more than doubling its proven oil and natural gas reserves estimates. The majority of Forestar’s revenue comes from lease bonus payments and oil and gas royalties from over 470 producing wells owned and operated by third parties in Texas and Louisiana. The deal is expected to close in the second half of 2012.
- Rockwater Energy Solutions acquired Southwest Proppants & Services (SWP) and Silverline Transportation, oilfield services companies headquartered in Midland and Odessa, Texas, respectively. SWP provides sand and proppant brokering and logistics at multiple locations across Texas, including rail transloading and storage and unit train processing capabilities. Silverline brings to Rockwater 15 years’ experience in proppant logistics in the oil field, a fleet of assets, and a seasoned management team.
- TGS-NOPEC Geophysical acquired Calgary, Alberta-based Arcis Seismic Solutions. The total equity value is approximately USD 51 million, reflecting an enterprise value of USD 72 million, based on net debt at the date of acquisition. The acquisition was consolidated into TGS’s accounts as of 1 July 2012.
- Mexican billionaire Carlos Slim bought an 8.4% stake in YPF, Argentina’s biggest oil and gas company. Slim acquired 6.59% of YPF’s stock, or almost 25.9 million Class D shares, for USD 288 million, according to a filing YPF sent to the local stock exchange. He also acquired another 1.77%, or almost 7 million shares, as part of the deal.
- Axon Energy Products acquired the assets and existing business of Doyle’s Valves, through its subsidiary Axon Pressure Products (APP). APP engineers, manufactures, remanufactures, and provides blowout preventers (BOPs), BOP control systems, choke and kill products, high-pressure valves, diverter controls, and deepwater multiplex controls for onshore and offshore applications. Doyle’s, headquartered in Houston, Texas, has approximately 80 employees in the greater Houston area, who are expected to be retained as employees of APP.
- A wholly owned US subsidiary of Japan’s Osaka Gas will buy a 35% nonoperated interest in Pearsall shale acreage from Houston-based Cabot Oil & Gas. Osaka will buy an interest in about 50,000 net acres leased by Cabot in Atascosa, Frio, La Salle, and Zavalla counties, Texas. Osaka will pay USD 125 million in cash to Cabot at closing and an additional USD 125 million to carry 85% percent of Cabot’s share of future drilling costs.
- Norway-based Aker Solutions is investing USD 100 million in a new drilling equipment facility at Macaé on Brazil’s east coast—about eight times bigger than Aker’s current facility, located nearby at Rio das Ostras. The new Macaé facility will include about 20 000 m2 of indoor mechanical workshop space for riser and topside equipment, with full crane and testing capabilities. The site will have capacity for around 700 employees.
- Expro opened a new operations base in Paradise, Newfoundland. The custom-built facility, in which Expro invested USD 3.4 million, supports the delivery of well testing, subsea, and downhole video services for the region. Located in the new Octagon Industrial Park, the facility houses 30 employees. The base covers a 2-acre lot and includes a four-bay workshop with 8,400 ft2 of warehouse area and an office annex with 6,000 ft2 of office space on two levels.
- Variable Bore Rams, an original equipment manufacturer of BOP components and ram providers, added a distribution center in Yoakum, Texas. The center will offer a wide variety of BOP rams and elastomers manufactured by Cameron, Hydril, and Shaffer (NOV). The stock includes, but is not limited to, variable bore, dual bore, straight bore, multibore, dual string shear, casing, and blind rams.
- TAM International opened its new Canadian regional headquarters, housing a manufacturing, service, and training facility, in Calgary, Alberta. The new 24,000-ft2 facility will double TAM’s manufacturing capabilities and allow the company to provide tool repair and redressing services on a larger scale.
Contracts and Tenders
- SBM Offshore received a letter of interim award (LOIA) from Shell for the supply, lease, and operation of a floating, production, storage, and offloading (FPSO) vessel for the Fram field in the UK sector of the North Sea. The LOIA allows SBM Offshore to commence engineering and procurement of long lead items to ensure timely completion of the planned Fram FPSO project, which is subject to a final investment decision.
- Weatherford International won a USD-843-million oilfield-facilities contract from an Eni-led group that will boost oil production from Iraq’s Zubair oil field by some 300,000 B/D. The production facilities will enable the Eni-led consortium to expand output from Zubair about 2 years from the start of work to 554,000 B/D from its current 254,000 B/D.
- Norway’s Fred Olsen Energy awarded Hyundai Heavy Industries an order, estimated at USD 700 million, for the building of a semisubmersible drilling rig with scheduled delivery in March 2015.
Chevron awarded a 5-year contract valued at more than USD 1.07 billion for Pacific Drilling’s Pacific Sharay ultradeepwater drillship, under construction at Samsung Heavy Industries in South Korea.
- Chevron will use the drillship for its drilling operations in the Gulf of Mexico following delivery from Samsung in 4th-quarter 2013.
- Bergen Group Dreggen was awarded a new contract with the engineering, procurement, and construction contractor Techint Engenharia e Construção in Brazil. The contract, with a value estimated between USD 10 million and USD 11.7 million, comprises delivery of four offshore lattice boom cranes for two fixed wellhead platforms being constructed for Brazilian firm OSX.