MERGERS AND ACQUISITIONS
Tetra Technologies’ gas compression unit, Compressco Partners, acquired all outstanding shares of Midland, Texas-based Compressor Systems Inc. (CSI) for USD 825 million in cash. CSI sells and maintains natural gas compressors and provides compression services.
Diamondback Energy entered into an agreement with unrelated third-party sellers to acquire additional leasehold interests—primarily in Midland and western Glasscock counties, Texas, in the Midland basin—for around USD 583 million. Assets acquired include 13,136 net acres (88% operated) and net production of 2,173 BOE/D from 131 gross (94 net) producing wells.
Breitburn Energy Partners entered into an agreement to acquire Houston-based QR Energy in a unit-for-unit exchange, for approximately USD 3 billion. Under the agreement, holders of QR’s common and class B units will receive 72 million Breitburn common units.
Shell Canada Energy entered into an agreement with Mapan Energy to sell certain oil and gas properties and infrastructure in Deep basin—in western Alberta and northeastern British Columbia, Canada—for USD 132.5 million. According to Mapan, the assets include 203,200 gross acres (162,000 net acres), 15.16 MMBOE of probable producing reserves, approximately 7,000 BOE/D (10% liquids) of production, and 250 km of gas pipelines and field compression facilities with a combined capacity of 185 MMcf/D.
Stone Energy has agreed to sell its noncore Gulf of Mexico properties to Talos Energy for USD 200 million in cash. Stone will also assume future undiscounted abandonment liabilities estimated at USD 117 million.
Saudi Aramco subsidiary, Aramco Overseas Company (AOC), has agreed to acquire Hanjin Group’s entire stake in Korean refinery company S-OIL Corporation for approximately USD 1.95 billion. The share purchase will increase AOC’s interest in S-OIL from 35.99% to 63.4%.
Whiting Petroleum has signed an agreement with Kodiak Oil & Gas to acquire Kodiak in an all-stock transaction valued at USD 6 billion, including Kodiak’s net debt of USD 2.2 billion. Following the transaction, shareholders of Whiting are expected to own approximately 71% of the combined company on a fully diluted basis, and shareholders of Kodiak are expected to own approximately 29%.
Weatherford has opened a 354,000‑ft2 rod pump manufacturing facility on a 174‑acre site in Katy, Texas. The plant has the capacity to produce 800 rod pump units per month and currently employs 135 people. Weatherford plans to increase the number of employees to 335 by the end of 2014.
Statoil opened a USD-39-million research center for improved oil recovery at Rotvoll in Trondheim, Norway. The facility will be the largest of its kind in the country. Its long-term goal is to increase recovery rates of Norwegian Continental Shelf resources to 60%.
Petrobras renewed two maintenance services contracts with Skanska for 15 offshore platforms in the area of Macae, Brazil, for a 2-year period. The combined value of the contracts is USD 87 million. Scope of work includes the execution of electrical and mechanical maintenance services on equipment installed on the platforms.
Hyundai Heavy Industries (HHI) won a USD-1.94-billion contract from the Abu Dhabi Marine Operating Company to build fixed platforms and to lay subsea cables at the Nasr oil field, located 130 km northwest of Abu Dhabi, off UAE. HHI will undertake engineering, procurement, construction, installation, and commissioning work for the complex, comprising a gas-treatment platform, separation platform, and accommodation platform; laying 144 km of subsea power and 55 km of infield cables; and modification of an existing manifold tower and two wellhead towers at the oil field. Work is expected to be finished in the second half of 2019.
Ezion won a USD-123-million contract to provide a service rig for 7 years. The rig, which is expected to be deployed by the second quarter of 2015, will support the North Sea oil and gas activities of an Eastern Europe-based oil company. Ezion also signed a letter of intent for a 5-year contract worth USD 146 million to provide a service rig for a Southeast Asian national oil company.
Saipem won a 4-year contract extension from Petrobras for its Cidade de Vitória floating production, storage, and offloading (FPSO) vessel in the Petrobras-operated Golfinho field in Brazil’s Espirito Santo basin. Saipem also secured a contract for modification and upgrading of the FPSO. The contracts’ value is USD 450 million, extending them until 2022. In Angola, Saipem won a 2-year extension (through first-quarter 2017) from Sonangol for its Gimboa FPSO, which has been under a lease and operation contract in Block 4/05 since 2006. The extension is valued at approximately USD 150 million.
Rowan Companies secured a charter contract from XXI Energy for operations in the Gulf of Mexico. The rig, whose day rate is USD 108,000, will be under contract for 75 to 80 days.
Kuwait Oil Company—the fully owned upstream subsidiary of the Kuwait Petroleum Corporation, Kuwait’s national oil company—has awarded L&T Hydrocarbon a USD-846-million engineer-procure-construct contract to build an oil-gathering center in northern Kuwait. The facilities—which will receive crude from Raudhatain, Kuwait’s second-largest oil field—will be designed to perform a multistage process that can separate 100,000 B/D of crude oil, 240,000 B/D of water, and 62.5 MMscf/D of associated gas.
ShawCor’s pipe-coating division, Bredero Shaw, won a USD-50-million contract from a consortium of Japanese companies Marubeni and Sumitomo to provide coating services for Line 2 of the South Stream Offshore Pipeline—which is composed of four pipelines that will cross the Black Sea and transport gas from Russia to Bulgaria and on to central and southern Europe. Scope of work includes coating approximately 342 km of 32-in. pipe with 3-layer polypropylene and internal flow coating. It is expected that the work will be completed in 2015.