Mergers and Acquisitions
- Apache is buying privately held Cordillera Energy Partners for USD 2.85 billion, doubling its assets in the Anadarko Basin, adding 14,000 potential drilling wells, in addition to other shale assets in the Granite Wash, Tonkawa, Cleveland, and Marmaton formations of Oklahoma and Texas. Apache will pay Cordillera’s investors USD 600 million in its own stock, with the remainder of the deal to be paid in cash funded through debt.
- Pembina Pipeline agreed to buy natural gas liquids (NGL) infrastructure company Provident Energy for CAD 3.2 billion in stock. The deal would combine Pembina’s crude oil pipeline and natural gas gathering system in western Canada with Provident’s NGL processing, storage, and marketing operations located along major pipeline routes connecting western Canada with markets in the US and eastern Canada.
- RAM Energy Resources reached agreement with Halcon Resources for a transformational capital investment in RAM. The investment comprises USD 275 million in new common stock, a USD 275 million 5-year convertible note, and warrants for the purchase of an additional 110 million shares of common stock. A majority of RAM’s current shareholders agreed to approve the transactions contemplated by the agreement. The transaction is expected to close in first-quarter 2012.
- Swire Oilfield Services opened its regional headquarters for Asia Pacific in Singapore. Located in the Loyang supply base, the operations hub will also provide a full suite of services including cargo carrying units, aviation services, and modular systems across Asia Pacific, including Indonesia, Malaysia, Brunei, India, Middle East, Sakhalin, Australia, and New Zealand. The hub will house all management, financial, engineering, design, and operational teams for the region, and is expected to take on a major role designing and procuring the next generation of Swire Oilfield Services’ equipment.
- Baker Hughes plans to build a new USD 40 million center in Harrison County, West Virginia, on a 52-acre site the company recently purchased outside Bridgeport. It will consolidate two existing facilities, preserving 200 jobs and creating a possible 275 new jobs. Construction is scheduled to begin in first-quarter 2012 and reach completion within a year. The new facility includes a 38,600-sq-ft, two-story office building; an 83,710-sq-ft workshop; and five auxiliary buildings that will support a fleet of up to 250 drilling operations vehicles.
- Aker Solutions will open a new 240-degree domed drilling equipment simulator in Houston, Texas, doubling the capacity of the current training center. Aker is investing USD 2.5 million in the new simulator, to be available 24/7 for North American-based rig operators and oil companies. The 9,800-sq-ft training center’s extensive server systems comprise 88 individual servers, which provide enough capacity to run simulations on two drilling rigs’ simulator systems simultaneously.
Contracts and Tenders
- Expro secured a GBP 3.2 million contract with Maersk, running for the duration of 3 years with a possible 2-year extension. The contract involves providing surface well testing, clean-up services, and large bore subsea safety systems for Maersk Oil UK’s contracted mobile offshore drilling unit(s) in the UK North Sea.
- FMC Technologies’ Australian subsidiary signed an agreement with Woodside Energy for the design, manufacture, and supply of subsea production systems to support the Greater Western Flank Phase 1 Project. The contract has a value of approximately USD 150 million. FMC’s scope of supply includes six subsea production trees, six wellheads, two manifolds, subsea and topside controls, and flowline connection systems. Deliveries are expected to commence in the second half of 2012, continuing through 2013.
- Odfjell secured a USD 1.2 billion pre-contract award, excluding options, with BP. The contract entails the provision of a new build semisubmersible. The contract will commence in fourth-quarter 2014 and have a fixed duration of 7 years, subject to approval by the Quad 204 partnership, a joint venture to redevelop the Schiehallion and Loyal fields in the UK. Daewoo Shipbuilding & Marine Engineering will build the sixth-generation rig to be used in drilling the fields. Construction engineering has begun and the keel laying is scheduled for March 2013.
- Wood Group’s Alliance Engineering was awarded the detailed engineering and design of the topside facilities and deck for Williams Partners’ Gulfstar floating production system spar production platform. This wet-tree platform will be installed in Block 768 of the Gulf of Mexico’s Mississippi Canyon area to produce oil and gas from the Tubular Bells Field, owned by operator Hess and Chevron USA. Initial production is scheduled to commence in 2014.
- Petrobras awarded Exterran Holdings a contract for the design, fabrication, and sale of a major natural gas processing and treating facility in Itau, Bolivia. The facility is a dew point gas processing plant that can process 200 MMcf/d of natural gas and is expected to start up during 2013. Exterran is the primary contractor on the project, providing equipment; engineering, procurement, and construction products and services; and project management.
- McDermott International received a contract worth about USD 2 billion from Inpex for the Ichthys gas/condensate field offshore Australia. The subsea/umbilicals/risers/flowlines (SURF) project includes engineering, procurement, construction, installation, and precommissioning of production flowline systems, a MEG injection system, plus start-up condensate transfer and fuel gas transfer flowline systems, control systems, as well as other associated SURF elements. Engineering work has commenced, with fabrication slated for 2013.
- Bergen Group Offshore won an estimated USD 8.6 million contract, via its subsidiary Bergen Group Rosenberg, with Statoil for the fabrication of subsea structures for the Åsgard Subsea Compression Project. The project involves delivery of 12 off-pipeline end manifold structures and one riser base with a total estimated weight of 850 tons. The work will commence immediately, with final delivery slated for May 2013.