Mergers and Acquisitions
Phillips 66 Partners will acquire Phillip 66’s interests in three US pipeline systems for USD 1 billion. The acquisition includes one-third equity interests in the companies that own the Sand Hills and Southern Hills natural gas liquids pipeline systems, and a 19.46% interest in Explorer Pipeline Company, owner of the Explorer refined products pipeline system.
ValueAct Capital Management acquired a 3.5% stake in Halliburton alongside its activist holdings in Baker Hughes. By buying into both sides, ValueAct is betting nearly USD 3 billion that cost and tax savings will strengthen the combined company. The San Francisco-based firm disclosed that it owns approximately 22 million shares in Baker Hughes, equivalent to an approximately 5.1% stake.
Berkshire Hathaway has sold its entire stake in ExxonMobil, which amounts to USD 3.7 billion. The company also sold all its remaining shares in ConocoPhillips and reduced its holding of National Oilwell Varco stock by 18%.
Precision Polymer Engineering has opened a new, 30,000-ft2 seal manufacturing facility in Brenham, Texas. The plant will make high-pressure and high-temperature seals for drilling, semiconductor, and heavy equipment applications.
Shell signed a USD 11 billion deal with the government of Iraq to build a petrochemical plant in the southern oil hub of Basra. The Nibras complex will be one of the largest foreign investments in the country and is expected to produce 1.8 MTPA of chemical products at peak operation. No time frame was given by Shell for the completion of the project.
Otto Marine has secured two long-term charter contracts for the supply of two platform service vessels (PSVs) to an oil major in Australia. Under the contracts, two 4,000-DWT capacity PSVs will be mobilized to Australia between March and April. Each contract has a firm charter period and option, with a total charter tenure of up to 3 years and a total contract value of approximately USD 64 million.
Statoil awarded a USD 1 billion engineering, procurement, and construction (EPC) contract to Abiel for deck construction on a drilling platform in the Johan Sverdrup field in the Norwegian North Sea. The deck will be designed in Asker, Norway, and built in Abiel’s shipyards in Thailand and Norway. Delivery is expected by 2018.
Swiber Holdings, a Singapore-based offshore engineering firm, has secured an engineering, procurement, construction, installation, and commissioning contract worth USD 310 million from a national oil company in South Asia. The second largest contract in the company’s history, the project involves work on eight new platforms and associated pipelines for the development of a new offshore gas field in the region. Engineering will begin immediately, with the project’s completion expected in March 2017.
Ezra Holdings’ subsea service division, EMAS AMC, recently won multiple contracts from unnamed energy companies totaling approximately USD 65 million. The scope of work covers project management, engineering, and transportation and installation works for a floating production, storage, and offloading (FPSO) vessel in Africa, as well as various engineering and offshore construction support. Work on the projects has begun, with offshore execution planned for this year and next year.
Coastal Contracts’ wholly owned subsidiary, Coastal Offshore, has signed contracts to sell two offshore support vessels for a total of USD 54 million. The vessels were sold to unnamed customers in Mexico and are expected to be delivered this year and in 2017.
KANFA Group, a subsidiary of Sevan Marine, has been awarded an EPC contract for four process modules on the FPSO Yinson Production. The contract is expected to have a duration of 15 months and is valued at approximately USD 50 million. The FPSO will be deployed at the recently sanctioned Offshore Cape Three Points block, located in the Tana basin, 60 km offshore Ghana.
Golar LNG completed the sale and delivery of its liquefied natural gas (LNG) carrier Golar Viking to PT Perusashaan Pelayaran Equinox for USD 135 million. Built in 2005, the vessel has been renamed Salju under Indonesian flag and registry.
Cape joint venture SOCAR Cape JV has been awarded three contracts by Azerbaijan’s national oil company for the supply of services to projects at the Shah Deniz gas field. The contracts have an estimated worth of more than USD 65 million.
ABB won a contract worth more than USD 50 million to supply electrical systems for a Petronas floating LNG vessel, which will be called PFLNG2. The contract was awarded by Japanese engineering contractor JGC Corporation as part of a consortium, along with Samsung Heavy Industries of South Korea. ABB’s scope of electrical work includes designing, manufacturing, and supplying transformers, switchboards, motor-control centers, and power management systems. It will also manage the installation of the equipment and ensure the electrical supply is integrated with systems it is powering.
Occidental Petroleum has agreed to participate in a 2-year, USD 500 million exploration project in Abu Dhabi. Occidental will work with the state-owned Abu Dhabi National Oil Company (ADNOC) to explore for oil in the Hail and Ghasha offshore fields in the Arabian Gulf. The scope of work covers 3D seismic surveys, drilling of appraisal wells, and engineering studies for the fields’ development. ADNOC is the operator of the venture with 70% interest; Occidental holds 30% interest.
ATCO Structures & Logistics was awarded a contract worth USD 101 million to design, manufacture, and install 435 modular units under its current agreement with Bechtel on the Wheatstone Project in Western Australia. Work on the Chevron-operated project began in March and is expected to finish this year.