MERGERS AND ACQUISITIONS
Repsol agreed to acquire all Talisman Energy shares for USD 8.3 billion and will also assume USD 4.7 billion in debt. The incorporation of Talisman will increase Repsol’s output by 76% to 680,000 BOEPD, and will boost reserves by 55% to 2,353 billion BOE. The company will be present in more than 50 countries and employs more than 27,000 people. The transaction is expected to close in the middle of the year.
Statoil sold 6% of its working interest in the southern Marcellus Shale in a USD 394 million transaction with Southwestern Energy, divesting itself of approximately 30,000 acres and reducing its working interest from 29% to 23%. The acreage produced 4,000 BOPD for Statoil during the third quarter of last year.
Kinder Morgan agreed to acquire Bakken-based midstream firm Hiland Partners from Harold Hamm for a total of USD 3 billion, including debt. Hiland’s assets, which are mostly fee-based, consist of crude oil gathering and transportation pipelines and gas gathering and processing systems. The systems have more than 1.8 million acres dedicated under long-term agreements with major Bakken producers. Kinder Morgan expects to close the transaction in the first quarter of the year.
EnLink Midstream signed a definitive agreement to acquire LPC Crude Oil Marketing, a crude oil logistics company, for approximately USD 100 million. LPC purchases, transports, and sells approximately 60,000 BOPD, serving as a link between Permian Basin producers and end markets. The acquisition expands EnLink’s capabilities in the basin, adding crude oil purchasing and logistics capabilities to its existing natural gas gathering and processing services.
Schlumberger agreed to acquire a 45.65% interest in Eurasia Drilling Company (EDC) at USD 22 per share, for a total price of approximately USD 1.3 billion after adjustments. The transaction is expected to close in the first quarter of the year, after which Eurasia drilling will be unlisted from the London Stock Exchange and become a private company.
Energy Transfer Partners entered into a definitive merger agreement with Dallas-based Regency Energy Partners in a deal worth approximately USD 11 billion after assumption of debt. Regency shareholders will receive approximately 0.4 units of Energy Transfer stock and a cash payment of USD 0.32 per Regency unit. The transaction is expected to close in the second quarter of the year.
BP agreed to sell approximately half of its working interests in the US Gulf of Mexico’s Gila and Tiber fields to Chevron. The transaction is part of a partnership between the two companies and ConocoPhillips to develop the two deepwater discoveries and create a production hub in the Keathley Canyon area.
Downhole instrument maker Teledrift expanded its operations in Grand Prairie, Texas, after signing two leases for approximately 25,000 ft2 of new space. The deal more than doubles the size of the Oklahoma-based company’s facilities in Grand Prairie.
The Decmil Group’s wholly owned subsidiary Eastcoast Development Engineering won a wellsite installation service contract extension worth USD 65 million from BG Group subsidiary QGC. Eastcoast will begin the operational phase of the Queensland Curtis Liquefied Natural Gas project, supporting QGC with wellhead construction, logistics, material management, and a range of construction services this year. Located in Queensland, Australia, the project will convert coalbed methane into liquefied natural gas (LNG).
Expro was awarded a 4-year contract worth USD 200 million by Statoil to provide fully integrated well testing and fluid sampling in the Norwegian Continental Shelf. The contract has an optional 6-year extension and requires the provision of downhole tools, gauges, tubing, surface well testing, rig cooling, and other subsea services.
EMAS AMC, a division of Ezra Holdings, secured a contract worth more than USD 105 million to provide subsea construction services for Apache’s Julimar development project offshore Australia. The scope of work covers project management, engineering, transportation and subsea installation of an electrohydraulic steel umbilical, two heavy lift subsea manifolds, flying leads, and jumpers, and the procurement, fabrication, and installation of tie-in spools. Project management and engineering have begun and offshore execution is scheduled to begin in the first quarter of next year.
Keppel Shipyard, a wholly owned subsidiary of Keppel Offshore & Marine, secured a USD 705 million contract from Golar Gimi to convert GIMI, a Moss LNG carrier, into a floating LNG vessel. Keppel will provide the project design, detailed engineering and procurement of marine systems, and all conversion-related construction services. Construction is expected to begin by November.
Aker Solutions will provide engineering, procurement, and management services for 5 years at Statoil’s Johan Sverdrup field in the Norwegian North Sea. The work is worth USD 592 million and is part of a 10-year framework accord signed in 2013 and comes after Statoil decided to exercise a contract option. The scope of work covers the project’s first phase and will last through 2019.
WorleyParsons was awarded a contract worth USD 108 million to provide fabrication, modularization, and construction services for an oil sands mining project by a major exploration and production company in Canada. The work is expected to be finished by the middle of next year.
JGC Corporation, as part of a consortium with JGC Malaysia, won a contract worth USD 510 million from Petronas LNG 9 for work on the expansion of the Petronas LNG Complex in Bintulu, Sarawak, Malaysia. The contract calls for engineering, procurement, and construction services related to piping and associated facilities connecting six existing LNG storage tanks and a new LNG storage tank with shipping facilities.