Mergers and Acquisitions

ConocoPhillips agreed to sell its Algerian business unit to Indonesian state energy company PT Pertamina for USD 1.75 billion, plus customary adjustments. The company said the net carrying value of its Algerian assets was roughly USD 850 million as of 31 October 2012.
China National Offshore Oil Corporation (CNOOC) received Canadian government approval for its USD-15.1‑billion takeover bid for Nexen. CNOOC’s acquisition is still pending approvals from the US and UK governments.

Kongsberg Oil & Gas Technologies, a wholly owned subsidiary of Kongsberg Gruppen, entered into an agreement to acquire 100% of the shares of Apply Nemo. Apply Nemo, established in 1989, has its head office in Oslo, Norway, where the company currently has 172 employees. Turnover for 2012 was estimated at about NOK 275 million.

Malaysian state-owned Petronas received Canadian government approval for its USD-6.06-billion acquisition of Progress Energy Resources. Progress is a Calgary, Canada-based energy company with unconventional natural gas resources in northeast British Columbia and northwest Alberta.

Statoil purchased 70,000 acres of shale gas acreage in the US Marcellus area for USD 590 million, and said it would become operator of the acreage. The acreage was purchased from US companies Grenadier Energy Partners, PetroEdge Energy, and Protégé Energy, Statoil said. Statoil estimated its share of the resources at 300 million to 500 million BOE. Its share of production at this stage is about 5,000 BOE/D.

Sunbird Energy executed an agreement to acquire a 76% interest in the 870-Bcf Ibhubesi Gas Project offshore west coast South Africa for an initial purchase price of USD 1.5 million. The acquisition, when completed, will provide Sunbird with a 76% interest in Production Right Block 2A, which covers a 1,931-sq-mile area within the Orange Basin and contains the Ibhubesi gas discovery. PetroSA, the national oil company of South Africa, will retain its 24% interest in the block.

BP says it is selling its stake in a South China Sea gas field to Kuwait Foreign Petroleum Exploration Company (Kufpec) for USD 308 million in cash. Kufpec is buying BP’s 34.3% stake in the Yacheng gas field, which began producing in 1996 and supplies customers in Hong Kong and Hainan.

Chevron is purchasing a 50% stake in the Kitimat liquefied-natural-gas (LNG) project in British Columbia from EOG Resources and Encana. The Kitimat project has a license from the Canadian National Energy Board to export 10 million tons of LNG per year. After the deal, Chevron and Apache each will hold 50% stakes in the project and the associated Pacific Trail Pipeline. Chevron Canada will operate the LNG plant. Chevron Canada will also buy a 50% stake in about 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia from Apache.

SandRidge Energy will sell its Permian Basin assets to Sheridan Production Partners II, a privately held Houston-based company with a district office in Midland, Texas, for USD 2.6 billion in cash. The sale is expected to be completed in first-quarter 2013, with an effective date of 1 January 2013.

ExxonMobil, along with its subsidiary XTO Energy, finished acquiring Plano, Texas-based Denbury Resources’ Bakken shale assets, along with property in Wyoming and Texas, for USD 1.3 billion. The Bakken shale property in North Dakota and Montana consists of about 196,000 net acres.

PetroChina is paying CAD 2.18 billion to buy into the Duvernay natural gas and liquids play in west central Alberta with Calgary-based Encana. The deal gives PetroChina, through its wholly owned subsidiary Phoenix Duvernay Gas, a 49.9% stake in the asset in exchange for an initial CAD 1.18 billion, with the remainder payable over the next 4 years.

Woodside reached an agreement in principle to acquire a participating interest in the 349/Rachel and 350/Amit petroleum licenses, which contain the Leviathan field offshore Israel. Joint venture participants, Noble Energy Mediterranean, Delek Drilling, Avner Oil Exploration, and Ratio Oil Exploration, reached agreement whereby Woodside will acquire a 30% interest in the Leviathan field. Woodside will be the operator of any LNG development of the field, while Noble Energy will remain upstream operator. The agreement involves an initial upfront payment of USD 696 million, with additional contingent payments.


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