Mergers and Acquisitions
- A QEP Resources unit reached two agreements to acquire oil-development properties in the Williston basin in North Dakota from multiple sellers—including Unit Corporation and Black Hills Corporation— in deals with a combined value of roughly USD 1.38 billion. The North Dakota properties are located about 12 miles west of QEP’s main acreage in the Williston region.
- Thai state oil firm PTT Exploration & Production (PTTEP) announced its USD-1.9-billion offer for east-Africa-focused Cove Energy was declared wholly unconditional. PTTEP said it received valid acceptances from Cove shareholders representing more than 463 million shares—about 94.3% of the company’s existing share capital—well over the 75% required for it to take over the company.
- Shell has agreed to swap interests in two major natural gas projects in Australia with Chevron. Chevron will transfer to Shell its interests in the Browse liquefied natural gas project in Western Australia, with an estimated value of some USD 30 million, while Shell will transfer its 33.3% interest in two gas fields—WA-205-P and WA-42-R—connected to its Wheatstone project, also located in Western Australia. Shell will also make a USD-450-million cash payment to Chevron.
- Robbins & Myers and National Oilwell Varco (NOV) entered into an agreement under which NOV will acquire Robbins & Myers in an all-cash transaction that values Robbins & Myers at approximately USD 2.5 billion. Both companies’ boards of directors have unanimously approved the transaction, which is subject to customary closing conditions, including approval of two-thirds of Robbins & Myers shareholders. The deal is expected to close in fourth-quarter 2012.
- Nexen completed the previously announced sale of a 40% interest in its northeast British Columbia, Canada, shale gas assets to a consortium led by INPEX Corporation. Total consideration for the sale is USD 700 million, with 50% cash and a 50% capital carry, effective 1 July 2012. With the deal closed, Nexen now holds a 60% operated interest in the joint venture lands, with the remaining 40% now owned by INPEX Gas British Columbia, which is jointly established by INPEX and JGC Corporation.
- TMK IPSCO, energy pipe manufacturer TMK’s North American division, will be moving its corporate headquarters from Downers Grove, Illinois, to Houston, Texas. TMK IPSCO will begin the transition from Illinois to Texas over the next several months, with expected completion of the move by the summer of 2013. Most of its employees will be housed at the company’s newly built research and development center in Houston.
- T.D. Williamson, a provider of pipeline equipment and services, announced the opening of a new office in Kazakhstan, a country in which it had been operating without a permanent local presence since 2000. The facility has been set up as a limited liability partnership in Atyrau, Kazakhstan.
- Merrick, which provides production management and accounting solutions to the upstream oil and gas industry, announced the establishment of Merrick in Colombia. Its Colombian presence will be known as Merrick Colombia and be located in Bogota.
- Halliburton dedicated its new Lafayette, Louisiana, Completion Tools Manufacturing Facility. The company currently employs 135 people at the site and expects that number to rise to 160, with an annual payroll of more than USD 8 million, plus benefits, by yearend 2012. Halliburton invested nearly USD 65 million in the 200,000-ft2 plant, which produces complex machined components for oilfield service operations.
- IBM announced the opening of its Natural Resources Industry Solutions Lab (NRIS Lab) in Sao Paulo, Brazil. The NRIS Lab is a software development laboratory whose purpose is to help mining, oil, and gas companies gain greater visibility over their entire enterprise, insight into the financial impact of operating decisions, and the ability to know, evaluate, and respond in real time.
Contracts and Tenders
- Expro won a contract for work in the North Sea using its AX-S subsea well intervention system. Expro AX-S Technology signed a multimillion dollar contract with BG Group to intervene on two wells in late 2012 as well as an extended intervention campaign going into 2013 and beyond, to consist of in-well wireline activity, including production logging using a well tractor and subsea tree removal.
- Norske Shell awarded Framo Engineering, a Schlumberger company, a USD-100-million contract for the supply of a complete subsea multiphase booster pump system for the Draugen field in the Norwegian Sea. The contract includes a complete system for topside power and control, the power and control umbilical, and the complete subsea pump module and manifold. Field installation is planned for the summer of 2014.
- Technip won a subsea installation contract worth around AUD 60 million from Apache Energy 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. Project completion is scheduled for the second half of 2013.
- KBR was awarded a front-end engineering design (FEED) contract to perform work for the topsides and hull associated with a new-build, double-sided, single-bottom hull floating production, storage, and offloading (FPSO) vessel. The FPSO will be located offshore Angola, and FEED is under way.
- Sete Brasil awarded contracts to two Singapore companies. Sembcorp Marine won five drillship contracts worth USD 4 billion. Keppel O&M won contracts for the design and construction of five semisubmersible drilling rigs worth around USD 4.1 billion.
- South Korea’s Daewoo Shipbuilding & Marine Engineering won a contract worth over USD 1.9 billion to build five fixed oil production and processing platforms to be used for work offshore Africa. The five platforms are scheduled for delivery by 12 April 2016.