Mergers and Acquisitions
- ExxonMobil agreed to buy Denbury Resources’ assets in the Bakken shale for USD 1.6 billion in cash and interests in two oil fields. ExxonMobil is buying 196,000 net acres of land in North Dakota and Montana—the entirety of Denbury’s assets in the Bakken—and is giving Denbury in return its interests in the Hartzog Draw field in Wyoming and the Webster field in Texas, plus the cash. The deal raises ExxonMobil’s Bakken acreage by 50%.
- Nexen said 99% of votes cast by common shareholders were in favor of China National Offshore Oil Company’s proposed USD-15.1-billion takeover of the Calgary-based energy company. The transaction still needs approvals from Canada’s industry ministry as well as from US and European regulators.
- Private-equity firm First Reserve has formed a new venture to build pipelines throughout the oil fields of North Dakota. The firm committed USD 150 million to a joint venture with Triangle Petroleum to launch a pipeline and transportation company focused on the Bakken shale. The new company, Caliber Midstream Partners, will begin by constructing pipeline-gathering systems with a capacity of 10,000 BOPD and 15 Mcf/D of natural gas by mid-2013, connecting more than 100 far-flung oil and natural-gas well sites to rail terminals.
- Longwei Petroleum Investment Holding completed its USD-110.6-million purchase of the assets of Huajie Petroleum, located in northern Shanxi Province, China. The assets include fuel-storage tanks with a 100,000‑tonne capacity, with accessory facilities and equipment; delivery and distribution platforms, including a dedicated rail spur; and a vehicle loading and unloading station. The purchase also includes a 3000-m2 office building and land use rights for 98 acres of land adjacent to the main regional rail line.
- Wood Group agreed to acquire Mitchell’s Oil Field Services, a provider of maintenance, installation, and fabrication services in the Bakken shale region, for an initial consideration of USD 135 million. Further earn-out payments due in the period to 2015 based on Mitchell’s future performance may be payable.
- A majority interest in Acteon Group was acquired by an affiliate of Kohlberg Kravis Roberts & Co. from First Reserve, with Acteon management retaining a significant holding in the company. The executive management team will remain in place. The transaction is subject to customary approvals and is expected to close by
- Forestar Group completed its acquisition of Credo Petroleum for around USD 146 million in cash, excluding closing costs. Credo owns leasehold interests in more than 135,000 net mineral acres in North Dakota, Kansas, Nebraska, and Texas, with working interests in around 380 producing wells and overriding royalty interests in around 1,200 wells.
- CGGVeritas acquired the geoscience division of Fugro for EUR 1.2 billion. The acquisition includes Fugro’s four high-end 3D-seismic-acquisition vessels. Following the transaction, CGGVeritas and Fugro will develop a joint venture for collecting seismic data on the seabed.
- Schlumberger opened the Schlumberger China Petroleum Institute, located in the Schlumberger China headquarters office building in the Chaoyang district of Beijing. The institute has more than 100 petro-technical experts, most of them co-located on the same floor of the office building in Beijing, and others working in several locations around China.
- Norway’s Statoil began building a research center for improving oil recovery. It is located next to the company’s existing research center at Rotvoll in Trondheim, in the north of Norway. The center will cost around USD 42 million and is due to be completed by year-end 2013.
- Senergy anticipates more than doubling its Edinburgh workforce with the opening of a new city center office. The company has relocated its existing Edinburgh 16-member team to the building, where up to 40 employees can be housed. The largely open-plan office covers 4,500 ft2. A dedicated training room is included in the new office’s facilities. Earlier this year, Senergy unveiled new offices in Aberdeen, Scotland; Dubai, UAE; and Bath, UK.
Contracts and Tenders
- Shell agreed to pay USD 7.6 billion to Transocean for the use of four new offshore drilling rigs over a period of 10 years. Transocean will invest about USD 3 billion, excluding interest, to build the ultradeepwater drillships. The first vessel will be supplied in mid-2015; delivery of the remaining three is expected thereafter at roughly 6-month intervals. They will be constructed at the Daewoo Shipbuilding & Marine Engineering facility in South Korea.
- Aker Solutions was awarded an extension to its Troll field contract with Statoil. The Troll field on the Norwegian Continental Shelf is the world’s biggest subsea development in terms of subsea wells. The extension, valued at USD 44 million, will see Aker deliver a further three subsea trees, tubing hangers, and a tool package to the field.
- Inpex awarded Technip an offshore commissioning contract, worth around USD 274 million, for the Ichthys Liquefied Natural Gas Project, located in the Browse Basin, Western Australia. An integrated team will work on all activities related to the preparation and execution of the offshore commissioning for the floating production, storage, and offloading (FPSO) unit and the central processing facility. Technip’s operating center in Perth, Australia, will execute the contract.
- Norwegian FPSO operator BW Offshore signed a 4-year extension contract with CNR International (Côte d’Ivoire) for the lease and operation of the Espoir Ivoirien. The firm period for the FPSO has been extended to 2nd-quarter 2017 from 1st-quarter 2013, while the option period has been extended to 2nd-quarter 2036 from 1st-quarter 2022. The contract has a total revenue of USD 925 million, including options.
- Australia’s Clough won an engineering and project-services contract worth USD 60 million from Pearl Oil (Amata) for work on the Manora field, sited 50 miles offshore Thailand, to be executed in consortium with TL Offshore. The scope of work consists of procurement of equipment and bulk materials; fabrication of the wellhead processing platform; and transportation, installation, and hook-up of the platform to two 1-mile pipelines in the Manora oil field.