MERGERS AND ACQUISITIONS
Halliburton entered into a definitive agreement to acquire all outstanding Baker Hughes shares in a stock and cash transaction valued at approximately USD 34.6 billion, translating to USD 78.62 per Baker Hughes share. Upon completion of the transaction, Baker Hughes stockholders will own approximately 36% of the combined company. Halliburton has agreed to pay a fee of USD 3.5 billion if the transaction terminates due to a failure to obtain required antitrust approvals. The transaction is expected to close in the second half of 2015.
Tourmaline Oil entered into an agreement to sell 25% of its Peace River High complex in Alberta (lands, reserves, and facilities) to Canadian Non-Operated Resources for USD 438 million. After closing the transaction in December 2014, the buyer will be a joint-venture partner in the complex with a 25% working interest and will be responsible for its share of exploration and production costs going forward.
Plains All American Pipeline entered into a definitive agreement to purchase Occidental Petroleum’s 50% share in BridgeTex Pipeline Company for USD 1.075 billion. BridgeTex owns the BridgeTex Pipeline—a 300,000 B/D crude pipeline system that extends from Colorado City in west Texas to Texas City, approximately 15 miles from the port of Galveston. The remaining 50% of BridgeTex Pipeline is owned by Magellan Midstream Partners.
Synergy Resources Corporation, a US exploration and production company focused on Colorado’s Denver basin, signed an agreement to purchase producing wells and leaseholds in the basin’s Wattenberg field. Synergy is acquiring the assets from an unnamed seller for USD 125 million—USD 87.5 million in cash and USD 37.5 million in Synergy common stock. Assets include nonoperated working interests in 17 horizontal wells, 10 of which are in production and seven are being completed. In addition, the acquisition includes 73 operated and 11 nonoperated vertical wells, plus 4,053 net acres with rights to the Codell and Niobrara formations.
Malysian national oil company Petronas reached an agreement with Phillips 66 Asia to acquire its 47% interest in the Malaysian Refining Company (MRC) for USD 635 million in cash, with adjustment at completion. Upon closing of the transaction, Petronas will own 100% interest in MRC, which has a refining capacity of 170,000 B/D and is located in Melaka, Malaysia.
Pan Orient Energy entered into an agreement to transfer 51% direct working interest in, and operatorship of, Indonesia’s onshore and offshore East Jabung production-sharing contract to a wholly owned subsidiary of Talisman Energy. The subsidiary will pay USD 8 million in cash and allow Pan Orient an option to acquire 20% working interest in the Talisman-operated South Sumatra joint study area. The transaction is subject to approval by the Indonesian government and is expected to close in March 2015.
Houston-based Southwestern Energy will buy Marcellus and Utica assets from Chesapeake Energy for approximately USD 5.38 billion. The 413,000 net acres are almost all in West Virginia, with some in southern Pennsylvania, and include approximately 1,500 wells, of which 435 are in the Marcellus and Utica formations. The transaction is the largest ever for Southwestern and is Chesapeake’s biggest divestment. Net production is approximately 336 Mcfe/D, with a composition of 55% gas, 36% natural gas liquids, and 9% oil.
AzkoNobel opened a new powder coatings plant in Dubai to increase manufacturing capabilities for the company’s Resicoat and Interpon product lines. The facility is the company’s sixth manufacturing plant in the Middle East and its 30th powder coatings plant worldwide.
Philadelphia-based pipe company Polyflow opened a reinforced-thermoplastic-pipe manufacturing facility in Midland, Texas, in the Permian Basin. The plant will manufacture spoolable pipe for transporting hydrocarbons, water, and other liquids and gases for customers in west Texas, south Texas, New Mexico, and the mid-continent region.
Sembcorp Marine’s subsidiary PPL Shipyard secured a USD-240-million contract to build a jackup rig for Bot Lease, a leasing company owned by The Bank of Tokyo-Mitsubishi UFJ. The rig will be able to drill in 400 ft of water and will be capable of drilling high-pressure/high-temperature wells to depths up to 35,000 ft. It will be named Hakuryu 14, and delivery is scheduled for the end of October 2016.
United Arab Emirates-based rig builder Lamprell was awarded an approximately USD-365-million contract to supply Abu Dhabi National Oil Company’s drilling division National Drilling Company with two Super 116E, high-specification jackup rigs. The rigs will be constructed at a Lamprell facility in Hamriyah, UAE, and are expected to be delivered by the fourth quarter of 2016 and second quarter of 2017, respectively.
Eni awarded international engineering firms Royal HaskoningDHV and Witteveen+Bos contracts worth USD 18 million to design a new shipyard in Kazakhstan, near the town of Kuryk on the Caspian Sea. The project is being jointly managed by Eni and Kazakhstan’s national oil company, KazMunayGas, which both signed a strategic agreement concerning the yard in June 2014. No proposed completion date has been announced, but when opened shipbuilding is projected by KazMunayGas to commence at a rate of 400 tonnes per month and maintenance at a rate of 70 ships per year.
Hyundai Heavy Industries (HHI) signed a contract worth USD 1.94 billion with Abu Dhabi Marine Operating Company for work on the second package of the Nasr Full Field Development Project, 131 km offshore Abu Dhabi. HHI will undertake engineering, procurement, construction, installation, and commissioning work for a complex comprising a gas-treatment platform, separation platform, and an accommodation platform. Services include laying 144 km of subsea power cables and 55 km of infield cables, modifying an existing manifold tower and two wellhead towers, and work on power-distribution facilities. The package is expected to be completed in 2019.