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Company News

Mergers and Acquisitions

  • BreitBurn Energy Partners will acquire additional oil and natural gas properties in the Permian Basin in Texas for around USD 282 million from CrownRock. The acquisition includes approximately 93 producing wells and over 300 potential drilling locations. Estimated average net production is 2,900 BOE/D.
  • New Western Energy acquired two oil and gas leases encompassing 600 acres in Wilson County, Kansas, which have a combined production of 7.5 BOPD. The first lease consists of 440 acres with 14 existing oil wells and three water injection wells that currently produce at the rate of 5 BOPD. The second lease consists of approximately 160 acres with three existing oil wells that currently produce at the rate of 2.5 BOPD.
  • Kvaerner sold its onshore construction business in North America to Matrix Service for an enterprise value of USD 80.3 million. Matrix will receive ownership of certain assets of Kvaerner North American Construction in the US and the shares in Kvaerner North American Construction in Canada.
  • Chevron will jointly explore shale gas in southeastern Poland with local state-controlled gas firm PGNiG. If the cooperation is successful, they might set up a joint company in which both parties would hold a 50% stake. Binding agreements are expected to be signed this year.
  • New Western Energy acquired an oil and gas lease consisting of 80 acres adjacent to its Winchester and Thomas leases in Rogers County, Oklahoma. The lease, Winchester II, has five existing oil and gas wells and one water injection well that currently produce an average of 4 BOPD.
  • Jones Energy entered into a definitive agreement to acquire producing and undeveloped oil and gas assets in the Anadarko basin from Sabine Oil & Gas for USD 195 million. The assets consist of approximately 26,000 net acres in the Cleveland, Tonkawa, and Marmaton plays in the Texas Panhandle and western Oklahoma. The assets have proved reserves of 14.3 million BOE.
  • Centor Resources purchased a 55% working interest in shale oil resources in the Pasquia Hill region of Saskatchewan, Canada. The assets are estimated to hold more than 1.1 billion bbl of recoverable oil in leases that span 21,658 acres.
  • MOL Hungarian Oil & Gas agreed to pay BASF USD 375 million for North Sea oil and gas assets. MOL will acquire 14 licenses on the UK continental shelf from BASF’s oil-and-gas unit Wintershall. The transaction is expected to close in the first quarter this year.

Company Moves

  • The American Bureau of Shipping (ABS) will establish an office, scheduled to open in the first quarter, in Houston’s Energy Corridor. The new facility will colocate members from ABS engineering, project management, technology, and business management. In addition to classification services, the facility will offer education and training seminar rooms for local industry to use 
  • on demand. 
  • Saudi Aramco opened the Aramco Research Center in Cambridge, Massachusetts—the first of three US-based research and development centers aimed at expanding Saudi Aramco’s global research network and capability. The 32,000-ft2 research center is expected to create approximately 50 scientific and research jobs.
  • Safetec opened a new Competence Center in Bergen, Norway, which will provide onshore and offshore education and training for organizations. The center will provide clients with experienced trainers and advanced facilities for teaching and training in risk management, safety, and emergency management. 

Contracts

  • Aker Solutions won a contract to provide engineering services, procurement, and management assistance for up to 10 years for the Johan Sverdrup oil field in the Norwegian North Sea. The first part of the contract is worth USD 106 million and consists of the front-end engineering and design for Statoil with additional options for work in later phases.
  • GOL Offshore signed a USD‑115‑million contract with Oil & Natural Gas Corporation for the reconstruction of BPA and BPB, two gas processing platforms off the west coast of India. GOL Offshore will provide the engineering survey, detailed design and engineering, procurement, fabrication, transportation of materials (from shore to offshore), installation, and hookup as well as commissioning.
  • Total signed an exploration and production-sharing agreement for deepwater Block 41 offshore Oman. The block covers almost 24,000 km2 of seabed at depths of up to 3000 m. The exploration program is expected to begin with seabed coring this year.
  • Salamander Energy signed a production sharing contract (PSC) for Malaysia’s Block PM322, located in the Melaka Strait on the Malay side of the Central Sumatra basin, offshore west coast Peninsular Malaysia. The PSC is located in shallow water and covers approximately 20,000 km2. Salamander will operate the PSC with an 85% working interest.
  • The Cambay Joint Venture secured the Essar Rig 4 for drilling the Cambay-77H well in its Cambay Tight Hydrocarbon Project in the Cambay basin in India through Essar Oilfield Services. The well is expected to be spudded in the middle of the first quarter.
  • Shell entered into a 3-year contract with Transocean for the Polar Pioneer drilling rig to start work off the coast of Alaska beginning July of this year. The rig is expected to earn a rate of USD 620,000 per day from July to October and USD 589,000 per day the rest of the year.
  • A subsidiary of McDermott International was awarded a USD-200-million engineering, procurement, construction, and installation project for a customer in the Arabian Gulf. The contract includes the fabrication, transportation, and installation of offshore facilities including two production deck modules and 10 observation platforms.