JPT logo
SPE logo

Company News

Merger and Acquisitions

Hess completed the sale of its Pangkah asset in Indonesia’s East Java Sea to a subsidiary of PT Saka Energi Indonesia for USD 650 million. The asset produced an average of 9,000 BOE/D in the first three quarters of 2013.

Maersk Oil will buy 40% stakes in two exploration blocks from Repsol Oriente Medio. The blocks, Piramagrun and Qala Dze, are located in the Kurdistan region of Iraq. Repsol will continue to operate the blocks’ exploration activities as well as hold 40% interests in them. The Kurdistan Regional Government will hold the remaining 20% stakes.

On 30 December 2013, Royal Dutch Shell completed the acquisition of an additional 23% interest in the Parque das Conchas (BC-10) project offshore Brazil for USD 1 billion, raising its operating interest in BC-10 to 73%, effective 1 January 2013. Partner ONGC, previously holding a 15% working interest, now holds a 27% working interest. This purchase was the result of ONGC and Shell pre-empting Sinochem’s bid for Petrobras’ 35% interest in BC-10. On 29 January 2014, Shell agreed to sell a 23% interest in BC-10 to Qatar Petroleum International for around USD 1 billion, subject to Brazilian regulatory and anti-trust authority approvals.

Amec provisionally agreed with Foster Wheeler for a cash and share offer, equating to a value of around USD 3.13 billion, for all Foster Wheeler shares. The deal is expected to close in the second half of 2014.

Energy Corporation of America (ECA) and China Shenhua Energy, a subsidiary of Shenhua America Holdings, entered into a 50/50 joint venture to develop 25 natural gas wells in Greene County, Pennsylvania, over 18 months starting 30 December 2013. Shenhua will contribute the first USD 90 million toward drilling the wells and ECA will operate the properties. Remaining capital expenditures will be split evenly between the two companies.

Vanguard Natural Resources will acquire natural gas and oil properties in the Pinedale and Jonah fields of southwestern Wyoming for USD 581 million. The properties consist of 14,000 net acres currently producing around 113.4 MMcfe/D.

Peregrine Petroleum acquired operated and nonoperated assets in the Anadarko basin from Primary Natural Resources III. The acquisition includes more than 10,000 net acres in Ellis and Roger Mills counties in western Oklahoma with production from the Cleveland, Tonkawa, and Atoka formations. Current net production is estimated to exceed 2,650 BOE/D.

GE will buy Cameron International’s reciprocating compression division for USD 550 million. The acquisition is expected to strengthen GE Oil & Gas’s high-speed reciprocating business with the addition of higher horsepower models for gas gathering, processing, and transmission.

BW Offshore acquired the tanker Blue Opal for USD 83.4 million from Daewoo Shipbuilding & Marine Engineering. The tanker is a 320,000-deadweight-ton very large crude carrier.

Company Moves

Russia’s Novatek completed the expansion of its Purovsky plant, which processes de-ethanized gas condensate produced at the company’s fields. Two new gas condensate stabilization trains, with a combined 3-million-ton annual capacity, were launched. Two other trains with the same capacity were launched in October 2013. The four trains expand the plant’s capacity from 5 to 11 million tons.

Halliburton is completing a new Integrated Completion Center, located in New Iberia, Louisiana, USA, to house more than 250 employees, with occupancy scheduled for late 2014. The center will include a 219,000-ft2 maintenance facility, a 30,000-ft2 administration building, an operations command center, and several learning auditoriums for training.


A consortium consisting of Bukit Energy Palmerah Baru (operator, 54%), New Zealand Oil & Gas (36%), and PT SNP Indonesia (10%) won a permit to explore the Palmerah Baru block covering around 386 sq miles in onshore south Sumatra, Indonesia. The consortium will commit to an initial 3-year exploration work program to include both 2D and 3D seismic acquisition and one exploration well.

The Republic of Honduras awarded BG Group a 4-year, extendable environmental license for a 35,000-km2 block off the coast of La Mosquitia, a jungle region bordering Nicaragua. The company will search for oil and gas in the block, investing USD 20 million to cover the first phase from 2014 to 2015.

Drydocks World was awarded a USD‑730-million contract from Drill One Capital to construct a large rig for the North Sea. Completion of the CJ-80 jack-up rig is set for 2017.

Aker Solutions won a framework contract from Statoil to provide engineering services, procurement, and management assistance (EPma) for as many as 10 years at the Johan Sverdrup development in the Norwegian North Sea. The accord includes front-end engineering and design work, worth USD 106 million, as well as an EPma option for the development’s first phase.

L&T Hydrocarbon Engineering, a subsidiary of Larsen & Toubro, secured a new order worth USD 113.4 million from BG Exploration and Production India for engineering, procurement, construction, and installation of one wellhead platform and subsea pipe-laying for 18.6 miles spread over the Panna-Mukta fields. The project is scheduled to be completed by March 2015.

Wood Group Mustang Canada was awarded an engineering and design contract for an integrated topsides facility as part of the White Rose Extension Project offshore Newfoundland and Labrador, Canada. Wood Group will provide support with the engineering, procurement, and regulatory services. Detailed engineering design of the topsides is scheduled to be completed by the first quarter of 2015.

China Oilfield Services Limited (COSL) has entered into a long-term cooperation contract with Pemex for COSL4, a 2,000‑HP module rig. The rig’s operation period will be more than 1,700 days.