1Derrick. Bringing News, Data and Experts Together
A leading provider of business research for the Oil & Gas Industry

NEWS

  • Highlights of the Week Ending 22-Nov-2014

    Global DealsThe week was full of blockbuster deals. US OFS giant Halliburton's $35 billiontakeover of Baker Hughes created an oilfield services powerhouse in North Dakota. Energy Transfer Partners agreed to acquire a 45% stake in the Bakken pipeline project from Energy Transfer Equity via an asset swap...

    Highlights of the Week Ending 22-Nov-2014
    Headlines, Global Deals, Projects & Capex, Exploration

    Global Deals

    The week was full of blockbuster deals. US OFS giant Halliburton's $35 billion takeover of Baker Hughes created an oilfield services powerhouse in North Dakota. Energy Transfer Partners agreed to acquire a 45% stake in the Bakken pipeline project from Energy Transfer Equity via an asset swap the companies value at $3.75 billion.

    Apache sold of its interest in assets in southern Louisiana and Anadarko Basin for $1.4 billion. Shell announced that Newcross Exploration and Production has completed the acquisition of SPDC’s 45% stake in OML 24 in the Eastern Niger Delta for $900 million in cash. Petronas also divested its stake in three blocks offshore Vietnam for $400 million to SapuraKencana.

    Meanwhile, the long-awaited deal between Salamander and Ophir also came to an end.

    Rumor has it that Talisman Energy is in talks to sell its pipeline operations that serve the Marcellus region in New York and Pennsylvania to Regency Energy Partners LP. A deal could be announced within three weeks, valuing the assets at more than $1 billion

    Exploration

    Lundin announced that the Kitabu-1 exploration well off Sabah in Malaysia, did not contain any hydrocarbons. Statoil’s first well results from the area have been disappointing and although the company still sees remaining prospectivity in the Kwanza Basin.

    Ophir Energy also drilled a duster at the Mkuki-1 well in Block 7 off Tanzania.

    Projects & Capex

    The week kick started with a news stating that Ineos will invest around $1 billion in shale gas exploration in the UK. Suncor also laid out it plan to spend $6.4-$6.9 billion in 2015, with more than half of those funds earmarked for growth projects.

    Hess started production from the Tubular Bells Field, located in the Mississippi Canyon area of the Gulf of Mexico.

    Finally, Cenovus received approval from Alberta for its fully owned Telephone Lake thermal oil sands project

  • ExxonMobil in Final Talks for Two Ivory Coast Oil Blocks

    Ivory Coast is finalising production sharing agreements with ExxonMobil for two ultra-deepwater blocks in the Gulf of Guinea."It's with Exxon Mobil. We expect to finish discussions before the end of the year," said Ibrahima Diaby, director of hydrocarbons at the ministry, speaking on the...

    ExxonMobil in Final Talks for Two Ivory Coast Oil Blocks
    Headlines

    Ivory Coast is finalising production sharing agreements with ExxonMobil for two ultra-deepwater blocks in the Gulf of Guinea.

    "It's with Exxon Mobil. We expect to finish discussions before the end of the year," said Ibrahima Diaby, director of hydrocarbons at the ministry, speaking on the sidelines of an oil and gas seminar in the capital Yamoussoukro. "A memorandum of understanding was signed for the two ultra-deep blocks and negotiations for the production sharing agreements are very advanced," he said.

    Ivory Coast is seeking investors for seven new ultra-deepwater blocks, inviting Exxon Mobil, Total, Eni, Anadarko Petroleum, Tullow Oil and ConocoPhillips to a promotional event in Texas last month. 

    Source: Reuters

  • Data analysis Well Results Off Angola Disappoint Statoil

    Statoil’s first well results from the area have been disappointing and although the company still sees remaining prospectivity in the Kwanza Basin and on the Statoil acreage, more time is needed to evaluate the well results and mature new prospects before deciding on future activities.The first two...

    Well Results Off Angola Disappoint StatoilData analysis
    Headlines, Exploration

    Statoil’s first well results from the area have been disappointing and although the company still sees remaining prospectivity in the Kwanza Basin and on the Statoil acreage, more time is needed to evaluate the well results and mature new prospects before deciding on future activities.

    The first two Statoil-operated wells in this pre-salt play, Dilolo and Jacare, have been drilled safely and very efficiently. These two wells also fulfil the drilling commitments on these two blocks. The Jacare well in block 38 has now been plugged and abandoned.

    Statoil is participating in eight commitment wells across five blocks in the Kwanza Basin. So far four wells have been completed and one well is ongoing in Block 40 operated by Total.

    View Statoil press release

  • Data analysis Ophir Comes Up Dry at Mkuki-1 Well Off Tanzania

    Ophir Energy has come up dry at the Mkuki-1 well in Block 7 off Tanzania. The well was drilled to a total depth of 3,204m and encountered a high quality sandstone sequence but with no hydrocarbons.It targeted a Tertiary-aged stratigraphic prospect located in water depths of 1,648m.Ophir also drilled the...

    Ophir Comes Up Dry at Mkuki-1 Well Off TanzaniaData analysis
    Exploration

    Ophir Energy has come up dry at the Mkuki-1 well in Block 7 off Tanzania. The well was drilled to a total depth of 3,204m and encountered a high quality sandstone sequence but with no hydrocarbons. It targeted a Tertiary-aged stratigraphic prospect located in water depths of 1,648m.

    Ophir also drilled the Tende-1 well in the East Pande Permit in a water depth of  781m to a total depth of 4,153m targeting the Cretaceous-aged Tende prospect. Although gas traces were encountered in the upper strata of the primary objective, wireline logs confirmed that no moveable hydrocarbons were present in this prospect. 

    In the secondary Tikiti objective, the Tende-1 well encountered a gas bearing sandstone. The company will evaluate the wider impact of this find as it integrates the well results into its understanding of the remaining prospects in the East Pande Block.

    View Ophir press release  

  • Data analysis Buru Spuds Commodore 1 Well in Canning Basin

    Buru Energy has spudded the Commodore 1 exploration well located in EP 390 in Western Australia's onshore Canning Basin. The well will be drilled to a total depth of 1,550m and is expected to take 35 days.Primary objective of the well is conventional oil reservoirs in the Grant Formation with secondary...

    Buru Spuds Commodore 1 Well in Canning BasinData analysis
    Exploration

    Buru Energy has spudded the Commodore 1 exploration well located in EP 390 in Western Australia's onshore Canning Basin. The well will be drilled to a total depth of 1,550m and is expected to take 35 days.

    Primary objective of the well is conventional oil reservoirs in the Grant Formation with secondary objectives in the underlying Nita carbonates.

    Ownership of Commodore 1 well: Buru (25%), Apache (50%) and Mitsubishi (25%). 

    View Buru press release

  • Data analysis Ophir Confirms Salamander Offer

    Ophir Energy has confirmed its intention to acquire Salamander Energy after Cepsa scrapped a potential bid for the company.Under the terms of the offer, Salamander shareholders would be entitled to receive 0.5719 Ophir shares for each Salamander share, 44.5%. to the closing price of 80.3 pence per...

    Ophir Confirms Salamander OfferData analysis
    Global Deals

    Ophir Energy has confirmed its intention to acquire Salamander Energy after Cepsa scrapped a potential bid for the company.

    Under the terms of the offer, Salamander shareholders would be entitled to receive 0.5719 Ophir shares for each Salamander share, 44.5%. to the closing price of 80.3 pence per Salamander share on 24-Oct-2014 (being the last business day prior to the date of the announcement by Salamander on 27-Oct-2014), and 31.6% to the volume weighted average share price of 88.1 pence per Salamander share for the one month period between 25-Sep-2014 and 24-Oct-2014.

    The offer would constitute a Class 1 transaction for Ophir for the purposes of the FCA's Listing Rules.

    View Salamander press release

  • Data analysis Cue Farms-In to Mahato PSC in Indonesia

    Cue Energy Resources has executed a farm-in agreement with Bukit Energy to acquire a 12.5% participating interest in the Mahato PSC in Central Sumatra, Indonesia. The 5,600 sq km Mahato PSC contains multiple appraisal and exploration drilling opportunities with two wells currently...

    Cue Farms-In to Mahato PSC in IndonesiaData analysis
    Others

    Cue Energy Resources has executed a farm-in agreement with Bukit Energy to acquire a 12.5% participating interest in the Mahato PSC in Central Sumatra, Indonesia. 

    The 5,600 sq km Mahato PSC contains multiple appraisal and exploration drilling opportunities with two wells currently planned for 2015.

    The 2015 work plan includes an appraisal well delineating the possible extension of the Petapahan Field into Mahato PSC, an exploration well nearby and seismic acquisition to further high grade exploration prospects for future drilling. As part of the farm-in, Cue’s share of costs for the two wells and seismic is capped by Bukit. View Cue press release

  • Suncor Offers $663 Million Medium Term Notes

    Suncor Energy has agreed to issue C$750 million (US$663 million) of senior unsecured medium term notes maturing on 26-Nov-2021. The 2021 notes will have a coupon of 3.1% and were priced at $99.663 per note to yield 3.154%.Suncor intends to use the net proceeds from the sale of the 2021 notes to replenish...

    Suncor Offers $663 Million Medium Term Notes
    Others

    Suncor Energy has agreed to issue C$750 million (US$663 million) of senior unsecured medium term notes maturing on 26-Nov-2021. The 2021 notes will have a coupon of 3.1% and were priced at $99.663 per note to yield 3.154%.

    Suncor intends to use the net proceeds from the sale of the 2021 notes to replenish existing cash balances following the recent repayment of outstanding indebtedness.

    The 2021 notes will be issued under Suncor's short form base shelf prospectus dated 11-Jun-2014, and filed with securities regulatory authorities in Canada. The offering is expected to close on 26-Nov-2014.

    CIBC, RBC Capital Markets, and TD Securities acted as joint book-runners for the offering.

    View Suncor press release

  • Data analysis Apache Sells Certain US Onshore Assets for $1.4 Billion

    Apache announced the sale of its interest in assets in southern Louisiana and Anadarko Basin. The assets were sold for a total of for $1.4 billion in two separate transactions. The first transaction involves sale of interest in approximately 90,000 net acres in southern Louisiana and 115,000 net acres....

    Apache Sells Certain US Onshore Assets for $1.4 BillionData analysis
    Headlines, Global Deals

    Apache announced the sale of its interest in assets in southern Louisiana and Anadarko Basin. The assets were sold for a total of for $1.4 billion in two separate transactions. The first transaction involves sale of interest in approximately 90,000 net acres in southern Louisiana and 115,000 net acres. The second transaction comprises of assets in Stiles Ranch field in Wheeler County, Texas, and in its Mocane-Laverne and Verden fields in western Oklahoma.

    Production from assets sold in southern Louisiana amounted to 21 MBOE/d (62% gas and NGLs) net to Apache in Q3-2014. The company will retain 275,000 mineral acres in South Louisiana.

    The assets sold in Anadarko Basin produced 26 MBOE/d (83% gas and NGLs) net to Apache in Q3-2014.

    G. Steven Farris, Apache's Chairman, CEO and president, said: "Proceeds from today's announced asset sales will be used primarily to fund our 2014 leasehold acquisition program, which has added significant acreage within our primary focus areas."

    View Apache press release

  • Data analysis Petronas Exits Three Blocks Off Vietnam for $400 Million

    Petronas divested its stake in three blocks offshore Vietnam for $400 million to SapuraKencana Petroleum. The transaction is effective 1-Jan-2014.The transaction comprises of a 50% interest in the Petroleum Contract for Blocks 01/97 and 02/97 Cuu Long Basin, a 40% interest in the PSC for Blocks 10 & 11.1...

    Petronas Exits Three Blocks Off Vietnam for $400 MillionData analysis
    Headlines, Global Deals

    Petronas divested its stake in three blocks offshore Vietnam for $400 million to SapuraKencana Petroleum. The transaction is effective 1-Jan-2014.

    The transaction comprises of a 50% interest in the Petroleum Contract for Blocks 01/97 and 02/97 Cuu Long Basin, a 40% interest in the PSC for Blocks 10 & 11.1 in Nam Con Son Basin, and a 36.84% interest in the PSC for Block 46-Cai Nuoc, Malay-Thi Chu Basin.

    View SapuraKencana press release

  • Data analysis Newcross E&P Buys Out SPDC in OML 24 for $900 Million

    Shell announced that Newcross Exploration and Production has completed the acquisition of SPDC’s 45% stake in OML 24 in the Eastern Niger Delta for $900 million in cash. Shell will receive $600 million for its 30% stake.Total and Eni sold their 10% and 5% stakes respectively.OML24 covers an area of some...

    Newcross E&P Buys Out SPDC in OML 24 for $900 MillionData analysis
    Headlines, Global Deals

    Shell announced that Newcross Exploration and Production has completed the acquisition of SPDC’s 45% stake in OML 24 in the Eastern Niger Delta for $900 million in cash. Shell will receive $600 million for its 30% stake.

    Total and Eni sold their 10% and 5% stakes respectively.

    OML24 covers an area of some 430 sq km and includes the Awoba, Awoba Northwest and Ekulama fields and related facilities. The divested infrastructure includes three oil flow-stations and three gas processing plants, in addition to various oil and gas pipelines. The divested fields produced on average around 13 MBOE/d during H1-2014.

    Post-transaction ownership of OML 24: Newcross Exploration and Production (45%, operator) and NNPC (55%).

    View Shell press release

  • Oyster Farms-Into Red Castle Prospect in UK North SeaData analysis
    Global Deals, Others

    Oyster Petroleum has signed an agreement to acquire a 30% interest in license P2132, in exchange for covering certain well costs on drilling. The license includes the Red Castle prospect and covers blocks 16/11b and 16/16 in the South Viking Graben of the UK North Sea.

    The P2132 license is operated by Maersk Oil with Centrica Resources as a partner.

    Richard Morgan, CEO of Oyster Petroleum, commented: “Following our recent licence awards in the UK 28th Round, this is a further positive step for Oyster Petroleum as we continue to build a high quality exploration program. We are delighted to be working with Maersk Oil and Centrica as Red Castle moves towards drilling next year.”

    View Oyster press release

  • Ineos Plans $1 Billion Investment in UK Shale Exploration

    The BBC reports that the refining and petrochemical group Ineos will invest around $1 billion in shale gas exploration in the UK. The BBC added that Ineos believes shale gas will transform the economics of the company’s Grangemouth refinery and petrochemicals plant in Scotland.Source: Reuters

    Ineos Plans $1 Billion Investment in UK Shale Exploration
    Headlines, Others

    The BBC reports that the refining and petrochemical group Ineos will invest around $1 billion in shale gas exploration in the UK. The BBC added that Ineos believes shale gas will transform the economics of the company’s Grangemouth refinery and petrochemicals plant in Scotland.

    Source: Reuters

  • TGS Wins 2D Contract for Mexican, US Atlantic Waters

    TGS has signed an LoA with Seabird Exploration to acquire up to 300,000 km of 2D seismic data over Mexico and US Atlantic waters. The LOA provides TGS access to charter up to six seismic vessels over a period of approximately 36 months.  Activity is expected to commence in 2015 subject to the issuance of...

    TGS Wins 2D Contract for Mexican, US Atlantic Waters
    Others

    TGS has signed an LoA with Seabird Exploration to acquire up to 300,000 km of 2D seismic data over Mexico and US Atlantic waters. The LOA provides TGS access to charter up to six seismic vessels over a period of approximately 36 months.  Activity is expected to commence in 2015 subject to the issuance of seismic acquisition permits from the relevant authorities.

    View TGS press release

  • CGG Considers Strategic Sale, Rebuffs Technip Offer

    Reuters, quoting Bloomberg, reports that CGG is considering putting itself up for sale after rebuffing an offer from Technip. CGG had initially rejected an offer from French oil services group Technip as too low, although talks were still ongoing.Source: ReutersTechnip announced that it had made an offer for...

    CGG Considers Strategic Sale, Rebuffs Technip Offer
    Headlines, Global Deals

    Reuters, quoting Bloomberg, reports that CGG is considering putting itself up for sale after rebuffing an offer from Technip. CGG had initially rejected an offer from French oil services group Technip as too low, although talks were still ongoing.

    Source: Reuters

    Technip announced that it had made an offer for all outstanding shares of CGG at €8.3 ($10.37) per share.

  • Talisman Looks to Sell Marcellus Pipelines
    Headlines, Global Deals

    Talisman Energy is in talks to sell its pipeline operations that serve the Marcellus region in New York and Pennsylvania to Regency Energy Partners LP, people familiar with the matter said. A deal could be announced within three weeks, valuing the assets at more than $1 billion. No agreement has been signed and Talisman could still select another buyer.

    View original article

    Disclaimer: 1Derrick has not verified this story and does not vouch for its accuracy.

  • Samsung Group Units Scrap $2.5 Billion Merger

    Samsung Heavy Industries scrapped a $2.5 billion takeover of Samsung Engineering due to shareholder opposition.The two companies had said they could cancel the merger if the buy back costs exceeded KRW 410 billion (US$370 million) for Samsung Engineering or KRW 950 billion for Samsung Heavy. According to...

    Samsung Group Units Scrap $2.5 Billion Merger
    Headlines, Global Deals

    Samsung Heavy Industries scrapped a $2.5 billion takeover of Samsung Engineering due to shareholder opposition.

    The two companies had said they could cancel the merger if the buy back costs exceeded KRW 410 billion (US$370 million) for Samsung Engineering or KRW 950 billion for Samsung Heavy. According to joint statement, Samsung Engineering shareholders wanted to sell shares worth KRW 706.3 billion while Samsung Heavy shareholders wanted a buyback worth KRW 923.5 billion.

    In their statement, Samsung Heavy and Samsung Engineering said they could reconsider the merger after "taking into account the market situation and shareholder opinions".

    Source: Reuters

  • Data analysis CNOOC Makes 'Mid-Sized' Discovery in S China Sea

    CNOOC has made a ‘mid-sized’ discovery at the Lufeng14-4 well located in Lufeng Sag in the Pearl River Mouth Basin of the South China Sea. The discovery well, drilled to a total depth of 4,098m in a water depth of 145m, encountered oil pay zones with a total thickness of approximately 150m.The oil...

    CNOOC Makes 'Mid-Sized' Discovery in S China SeaData analysis
    Headlines, Exploration

    CNOOC has made a ‘mid-sized’ discovery at the Lufeng14-4 well located in Lufeng Sag in the Pearl River Mouth Basin of the South China Sea. The discovery well, drilled to a total depth of 4,098m in a water depth of 145m, encountered oil pay zones with a total thickness of approximately 150m.

    The oil production of the well tested around 1.32 Mbbl/d.

    View CNOOC press release

  • Data analysis Cairn Completes SNE-1 Well in Sangomar Offshore Block

    Cairn Energy has completed operations at the SNE-1 well in Senegal’s Sangomar Offshore Block and plans are now underway to appraise the discovery next year. The SNE-1 well located in 1,100m water depth was drilled to a total depth of approximately 3,000m.Having discovered oil in the upper clastic...

    Cairn Completes SNE-1 Well in Sangomar Offshore BlockData analysis
    Exploration

    Cairn Energy has completed operations at the SNE-1 well in Senegal’s Sangomar Offshore Block and plans are now underway to appraise the discovery next year. The SNE-1 well located in 1,100m water depth was drilled to a total depth of approximately 3,000m.

    Having discovered oil in the upper clastic target, no hydrocarbons were subsequently encountered in the deeper target of karstified and fractured Lower Cretaceous shelf carbonates.  Following completion of logging operations the well will be plugged and abandoned.

    Ownership of Sangomar Offshore Block: Cairn (40%, operator), ConocoPhillips (35%), FAR (15%) and Petrosen (10%).

    View Cairn press release

  • Libya Hopes to Restart El Feel Oilfield Next Week
    Projects & Capex

    Libya hopes to restart oil production at the El Feel oilfield next week.

    Libya’s National Oil Corp (NOC) shut down the field more than a week ago when clashes forced the closure of the neighboring El Sharara oilfield. Both sites use the same power supply.

    Source: Reuters

    El Feel Field ownership: Libyan NOC (50%) and Eni (50%).

  • Suncor 2015 Capex Stable Despite Lower Oil Prices

    Suncor Energy plans to spend C$7.2-C$7.8 billion (US$6.4-$6.9 billion) in 2015, with more than half of those funds earmarked for growth projects. That puts capital spending next year roughly in line with 2014, as the company pushes ahead with key growth projects, including its Fort Hills oil sands mine in...

    Suncor 2015 Capex Stable Despite Lower Oil Prices
    Headlines, Projects & Capex

    Suncor Energy plans to spend C$7.2-C$7.8 billion (US$6.4-$6.9 billion) in 2015, with more than half of those funds earmarked for growth projects. That puts capital spending next year roughly in line with 2014, as the company pushes ahead with key growth projects, including its Fort Hills oil sands mine in Alberta, despite tumbling oil prices.

    Suncor plans to spend up to C$4.3 billion on growth projects in 2015, including more than C$2 billion on its oil sands segment, and will also fund sustaining capital investments focused on "safe, reliable and efficient operations."

    Production in 2015 is expected to average 540-585 MBOE/d, up slightly from a projected 525-570 MBOE/d this year.

    The company also confirmed that its total 2014 output will come in near the bottom end of its annual guidance, due to lower-than-expected production from its oil sands operations.

    Source: Reuters

  • Energy Transfer Partners, Energy Transfer Equity Swap Assets

    Energy Transfer Partners (ETP) has agreed to acquire a 45% stake in the Bakken pipeline project from Energy Transfer Equity (ETE) via an asset swap the companies value at $3.75 billion.ETE would transfer 30.8 million ETP common units, ETE’s 45% interest in the Bakken pipeline project, and a cash amount...

    Energy Transfer Partners, Energy Transfer Equity Swap Assets
    Headlines, Global Deals

    Energy Transfer Partners (ETP) has agreed to acquire a 45% stake in the Bakken pipeline project from Energy Transfer Equity (ETE) via an asset swap the companies value at $3.75 billion.

    ETE would transfer 30.8 million ETP common units, ETE’s 45% interest in the Bakken pipeline project, and a cash amount to be determined in exchange for newly issued Class H Units of ETP that will generally entitle ETE to receive 40% of the cash distributions and other economic attributes of the general partner interest and incentive distribution rights of Sunoco Logistics Partners.

    In addition, ETE and ETP anticipate that they will negotiate a reduction in the incentive distribution right subsidies that ETE previously agreed to provide to ETP, and that such reductions would occur in 2015 and 2016. When combined with the 50.16 million Class H Units acquired by ETE in Oct-2013, ETE would own Class H Units that will generally entitle ETE to receive approximately 90% of the cash distributions and other economic attributes of the general partner interest and incentive distribution rights of Sunoco. Upon redemption of the 30.8 million ETP common units, ETP’s outstanding common units will be reduced to approximately 322 million common units.

    View ETP press release

  • Fluor Prices $500 Million Senior Unsecured Notes Offering

    Fluor Corporation has priced its previously announced offering of senior unsecured notes in the form of a registered public offering of $500 million aggregate principal amount of 3.5% senior unsecured notes maturing in 2024. Fluor expects to close the offering on 25-Nov-2014.Merrill Lynch, Pierce, Fenner...

    Fluor Prices $500 Million Senior Unsecured Notes Offering
    Others

    Fluor Corporation has priced its previously announced offering of senior unsecured notes in the form of a registered public offering of $500 million aggregate principal amount of 3.5% senior unsecured notes maturing in 2024. Fluor expects to close the offering on 25-Nov-2014.

    Merrill Lynch, Pierce, Fenner & Smith Incorporated and BNP Paribas Securities acted as joint book-running managers for this offering along with several senior co-managers and co-managers.

    View Fluor press release

  • Eni Transfers 10% in Nebit Dag Area to Turkmenneft

    Eni has transferred a 10% stake in the onshore Nebit Dag Area in West Turkmenistan to Turkmenneft. Additionally, the Government of Turkmenistan has extended Eni’s operatorship of the PSA for the Nebit Dag Area to Feb-2032.Eni added that the agreement between the company and the government will allow it...

    Eni Transfers 10% in Nebit Dag Area to Turkmenneft
    Projects & Capex

    Eni has transferred a 10% stake in the onshore Nebit Dag Area in West Turkmenistan to Turkmenneft. Additionally, the Government of Turkmenistan has extended Eni’s operatorship of the PSA for the Nebit Dag Area to Feb-2032.

    Eni added that the agreement between the company and the government will allow it to make E&P investments in Burun and other satellite fields of the Nebit Dag Block.

    Ownership of Nebit Dag PSA: Eni (90%, operator) and Turkmenneft (10%).

    View Eni press release

  • San Leon Spuds Giertaltowice Well in Poland

    San Leon Energy has spud the Gieraltowice well, the second well being drilled in the Karpaty area in Poland. The Gieraltowice prospect is on the Bielsko-Biala concession in Karpaty and is targeting 4 Bcf of mid-case recoverable gas in two target reservoirs - the Upper Carboniferous sandstone being the primary...

    San Leon Spuds Giertaltowice Well in Poland
    Exploration

    San Leon Energy has spud the Gieraltowice well, the second well being drilled in the Karpaty area in Poland. The Gieraltowice prospect is on the Bielsko-Biala concession in Karpaty and is targeting 4 Bcf of mid-case recoverable gas in two target reservoirs - the Upper Carboniferous sandstone being the primary target with the Lower Carboniferous limestone as a secondary target.

    The drilling of the well is expected to be completed in the next few weeks with any well testing to be done immediately afterwards.

    Ownership of Gieraltowice prospect: San Leon (60%, operator) and PGNiG (40%).

    View San Leon Energy press release

  • Lundin Encounters Dry Hole in Kitabu-1 Well Off Sabah
    Exploration

    Lundin Petroleum announced that the Kitabu-1 exploration well off Sabah in Malaysia, did not contain any hydrocarbons. The well was completed in Blocks SB307/SB308 off Sabah using the West Prospero rig. The well has reached planned total depth of 2,270m and is to be plugged and abandoned as a dry hole.

    Ownership of Blocks SB307/SB308: Lundin (42.5%, operator), EnQuest (42.5%) and Petronas (15%).

    View Lundin press release

    View Lundin exploration wells webpage

  • NET Midstream Completes NET Mexico Pipeline
    Others

    NET Midstream announced the completion of construction of its 120-mile, 42-inch and 48-inch Texas interstate pipeline. The company achieved mechanical completion of the NET Mexico pipeline in Oct-2014 and has concluded commissioning activities and is now operational and able to deliver natural gas to Mexico.

    The design capacity of the pipeline is 2.3 Bcf/d, which can be expanded to 3 Bcf/d with additional compression. The pipeline is anchored by a long term firm gas transportation agreement for up to 2.1 Bcf/d with Pemex.

    The NET Mexico pipeline will transport gas from nine interconnects at the Agua Dulce Hub in Nueces County, Texas, to a point near Rio Grande City, Texas in Starr County.

    View NET Midstream press release

    View NET Mexico operations webpage

  • CEPSA Consortium Withdraws Bid for Salamander

    Compania Espanola de Petroleos (CEPSA) said that it was withdrawing from the bidding to acquire oil firm Salamander Energy. The CEPSA-led consortium, which included Strategic Energy, had made its proposed offer on the condition that Salamander cancelled a deal it struck with Malaysia's SONA Petroleum...

    CEPSA Consortium Withdraws Bid for Salamander
    Global Deals

    Compania Espanola de Petroleos (CEPSA) said that it was withdrawing from the bidding to acquire oil firm Salamander Energy. The CEPSA-led consortium, which included Strategic Energy, had made its proposed offer on the condition that Salamander cancelled a deal it struck with Malaysia's SONA Petroleum Berhard in Jul-2014, selling a 40% interest in two Thai oil fields.

    The withdrawal will reduce competition for rival suitor Ophir.

    Source: Reuters

  • Hess Starts-Up Tubular Bells Deep-Water Field in GoM

    Hess Corporation announced that production has commenced from the Tubular Bells field, located in the Mississippi Canyon area of the deep-water Gulf of Mexico. The field is expected to deliver approximately 50 MBOE/d from three producing wells by end of 2014.The Tubular Bells Field was discovered in 2003 and...

    Hess Starts-Up Tubular Bells Deep-Water Field in GoM
    Headlines, Projects & Capex

    Hess Corporation announced that production has commenced from the Tubular Bells field, located in the Mississippi Canyon area of the deep-water Gulf of Mexico. The field is expected to deliver approximately 50 MBOE/d from three producing wells by end of 2014.

    The Tubular Bells Field was discovered in 2003 and the development was sanctioned in Oct-2011. It lies in approximately 4,300 feet of water, 135 miles southeast of New Orleans. The field has an estimated production life of 25 years.

    Shareholding of Tubular Bells field: Hess (57.14%, operator) and Chevron (42.86%).

    View Hess press release

  • Data analysis CorEnergy to Acquire MoGas Pipeline for $125 Million

    CorEnergy Infrastructure Trust has entered into an agreement to acquire the MoGas Pipeline System for $125 million in cash. The pipeline system is an approximately 263-mile interstate natural gas pipeline system which originates in northeast Missouri, and extends into western Illinois and central Missouri....

    CorEnergy to Acquire MoGas Pipeline for $125 MillionData analysis
    Global Deals

    CorEnergy Infrastructure Trust has entered into an agreement to acquire the MoGas Pipeline System for $125 million in cash. The pipeline system is an approximately 263-mile interstate natural gas pipeline system which originates in northeast Missouri, and extends into western Illinois and central Missouri. The pipeline maintains receipt points with Mississippi River Transmission Corporation in eastern St. Louis and with Panhandle Eastern Pipe Line Company and Rockies Express Pipeline on the northern end of the system.

    CorEnergy intends to finance the acquisition cost with a combination of borrowings under its credit facility and with proceeds of its simultaneously announced public offering of common stock.

    View CorEnergy press release

  • Data analysis Forest Oil Sells Arkoma Gas Assets for $185 Million

    Forest Oil has entered into an agreement to sell its natural gas properties located in the Arkoma Basin for approximately $185 million.The properties produced 22 MMcf/d during Q3-2014, had estimated 1P reserves of 159 Bcf as of 31-Dec-2013, and generated approximately $23 million of lease-level income during...

    Forest Oil Sells Arkoma Gas Assets for $185 MillionData analysis
    Headlines, Global Deals

    Forest Oil has entered into an agreement to sell its natural gas properties located in the Arkoma Basin for approximately $185 million.

    The properties produced 22 MMcf/d during Q3-2014, had estimated 1P reserves of 159 Bcf as of 31-Dec-2013, and generated approximately $23 million of lease-level income during the past twelve months ended 30-Sep-2014 (when NYMEX Henry Hub pricing averaged $4.27 per Mcf).

    View Forest Oil press release

  • YPF, ENAP Invest $200 Million for Magellan Straits Project

    YPF and ENAP have agreed to invest an extra $200 million to increase natural gas production off the southern tip of South America. The investment will help boost output from the Magellan Straits project to about 4 MMcm/d from the current 2.4 MMcm/d.YPF and ENAP also agreed to extend the joint production deal...

    YPF, ENAP Invest $200 Million for Magellan Straits Project
    Headlines, Projects & Capex

    YPF and ENAP have agreed to invest an extra $200 million to increase natural gas production off the southern tip of South America. The investment will help boost output from the Magellan Straits project to about 4 MMcm/d from the current 2.4 MMcm/d.

    YPF and ENAP also agreed to extend the joint production deal beyond the existing Aug-2016 expiry date. The length of extension will depend on negotiations between YPF and the central government and YPF and the federal province of Tierra del Fuego.

    Source: Reuters

  • Exterran to Spin-Off Non-US Businesses

    Houston-based Exterran Holdings has announced a plan to separate its international and fabrication businesses into a new publicly traded company. The new company’s businesses will consist of Exterran Holding’s current international contract operations and aftermarket services businesses, with...

    Exterran to Spin-Off Non-US Businesses
    Others

    Houston-based Exterran Holdings has announced a plan to separate its international and fabrication businesses into a new publicly traded company. The new company’s businesses will consist of Exterran Holding’s current international contract operations and aftermarket services businesses, with operations in Latin America and parts of the Eastern Hemisphere, and its global fabrication business.

    Upon completion of the transaction, Exterran Holdings will be a pure-play U.S. compression services business and will own and operate the remaining US contract operations and aftermarket services businesses. The company will hold interests in Exterran Partners LP representing 37% of ownership.

    View Exterran Holdings press release

  • Eni, Sonangol to Study Lower Congo Basin for Gas

    Eni and Sonangol signed an agreement to study the potential of the non-associated gas present in the Lower Congo Basin offshore Angola.The scope of the study is to analyze the different gas valorization options both internationally and in the domestic market. The companies are also targeting developing...

    Eni, Sonangol to Study Lower Congo Basin for Gas
    Others

    Eni and Sonangol signed an agreement to study the potential of the non-associated gas present in the Lower Congo Basin offshore Angola.

    The scope of the study is to analyze the different gas valorization options both internationally and in the domestic market. The companies are also targeting developing midstream and downstream projects in Angola.

    View Eni press release

  • Halliburton to Acquire Baker Hughes for $35 Billion

    Halliburton has signed a definitive agreement with Baker Hughes to acquire all the outstanding shares of Baker Hughes in a stock and cash transaction valued at $34.6 billion. The transaction values Baker Hughes at $78.62 per share as on Nov-2014.Baker Hughes shareholders will receive $19 per share in...

    Halliburton to Acquire Baker Hughes for $35 Billion
    Headlines, Global Deals, Others

    Halliburton has signed a definitive agreement with Baker Hughes to acquire all the outstanding shares of Baker Hughes in a stock and cash transaction valued at $34.6 billion. The transaction values Baker Hughes at $78.62 per share as on Nov-2014.

    Baker Hughes shareholders will receive $19 per share in cash and 1.12 shares of Halliburton for every share held. Upon completion of the transaction, Baker Hughes shareholders will hold 36% of the combined company.

     The transaction is expected to close in H2-2015.

    Halliburton has agreed to divest businesses that generate up to $7.5 billion in revenue, although the company believes that divestitures required will be significantly less.

    View Baker Hughes press release

  • Paragon Offshore Buys Majority Stake in Prospector Offshore

    Paragon Offshore revealed that it has acquired 52.7 million shares of Prospector Offshore Drilling at a price of NOK 14.5 (US$2.13) per share. Following the transaction, Paragon owns 55.8% of the outstanding shares of Prospector. Paragon will launch a mandatory tender offer for the remaining outstanding...

    Paragon Offshore Buys Majority Stake in Prospector Offshore
    Headlines, Others

    Paragon Offshore revealed that it has acquired 52.7 million shares of Prospector Offshore Drilling at a price of NOK 14.5 (US$2.13) per share. Following the transaction, Paragon owns 55.8% of the outstanding shares of Prospector. Paragon will launch a mandatory tender offer for the remaining outstanding shares of Prospector within four weeks.

    Prospector owns and operates two high specification Friede and Goldman JU-2000E jackups contracted to Total for use in the UK North Sea. The first unit, Prospector 1, is contracted until Sep-2016 at a dayrate of $185,000 and the second unit, Prospector 5, is contracted for three years following contract commencement at a dayrate of $218,000. 

    Prospector has three additional JU-2000E jackups under construction at the Shanghai Waigaoqiao Shipbuilding yard in China.  These three units, Prospector 6, Prospector 7 and Prospector 8, have published delivery dates of Dec-2014, Sep-2015 and Mar-2016. 

    View Paragon Offshore press release

  • White Cliffs Pipeline to Expand Capacity
    Projects & Capex, Others

    White Cliffs Pipeline LLC revealed plans to expand capacity on its existing system to facilitate increasing shipments of crude oil from the DJ Basin to the Cushing hub.

    The project will increase the capacity of the 527-mile pipeline to 215 Mbbl/d from 150 Mbbl/d. The project is expected to be completed by end of Q3-2015.

    View White Cliffs Pipeline press release

    View SemGroup operations webpage

  • Cenovus Bags Approval For Telephone Lake Oil Sands Project
    Projects & Capex

    Cenovus Energy has received approval from Alberta for its fully owned Telephone Lake thermal oil sands project. The proposed project is located approximately 90 km north-east of Fort McMurray, within the company's Borealis Region of northern Alberta.

    The approval is for a SAGD project with initial production capacity of 90 Mbbl/d. The project is anticipated to be developed in two 45 Mbbl/d phases. Telephone Lake is expected to eventually have a total production capacity in excess of 300 Mbbl/d, with a project life of more than 40 years. Cenovus filed its Telephone Lake regulatory application and environmental impact assessment in Q4-2011.

    As of 31-Dec-2013, the independent qualified reserves evaluator estimated Cenovus's best estimate bitumen economic contingent resources for Telephone Lake at 2.6 Bbbl. The company expects to make a decision on the timing of development in 2015.

    View Cenovus press release

    View Telephone Lake Environment Impact Assessment - Executive Summary

  • US Gives Final Approvals to Freeport for LNG Exports

    The US Department of Energy gave two final approvals to Freeport LNG Development to export LNG from its project in Texas to any country. The planned project in Quintana Island, Texas, would have the capacity to export up to 1.8 Bcf/d of LNG once constructed.The Federal Energy Regulatory Commission approved...

    US Gives Final Approvals to Freeport for LNG Exports
    Others

    The US Department of Energy gave two final approvals to Freeport LNG Development to export LNG from its project in Texas to any country. The planned project in Quintana Island, Texas, would have the capacity to export up to 1.8 Bcf/d of LNG once constructed.

    The Federal Energy Regulatory Commission approved construction of the project in Aug-2014.

    View Freeport LNG press release

  • Highlights of the Week Ending 15-Nov-2014

    Global DealsIn a sign that the oil price decline is affecting M&A activity, the Pakistan government has decided to indefinitely postpone the planned $815 million saleof a 7.5% stake in Oil and Gas Development Co Ltd (OGDCL) citing lower oil prices.AEP was back in action when it revealed the acquisitionof...

    Highlights of the Week Ending 15-Nov-2014
    Headlines, Global Deals, Projects & Capex, Exploration

    Global Deals

    In a sign that the oil price decline is affecting M&A activity, the Pakistan government has decided to indefinitely postpone the planned $815 million sale of a 7.5% stake in Oil and Gas Development Co Ltd (OGDCL) citing lower oil prices.

    AEP was back in action when it revealed the acquisition of assets in SCOOP and STACK resource plays in Oklahoma for $251 million. The properties are primarily located in the Canadian, Carter, Garvin, Grady, Kingfisher, Love and Stephens counties.

    Genel Energy bought out OMV from the Bina Bawi field for $150 million in cash. Meanwhile in Canada, Prairie Sky Royalty entered into an agreement to buy Range Royalty for $615 million. Phillips 66 divested its 47% stake in the Malaysian Refining Company to Petronas for $635 million.

    The end of the week saw Halliburton reveal that it is in talks to acquire Baker Hughes. The potential merger would create a drilling, logistics and well services giant worth $67 billion.

    Exploration

    Shell said that it remains most interested in deep-water oil projects in Mexico. Centrica announced gas flows from the Peagasus West discovery in P1724 in the UK Southern North Sea. 

    Afren commenced drilling the Ameena East Well on OML 115 offshore Nigeria. Cairn Energy hit pay at the SNE-1 Well off Senegal. CalEnergy spud the Pryderi-1 well in Browse Basin in the WA-424-P Block off north-west Australia.

    Projects and Capex

    Lukoil announced a plan to invest up to $864 million to develop oilfields in the Nenets Autonomous Okrug (NAO) area. Mubadala announced the start-up of the Manora oilfield off Thailand. Cheniere Energy raised $2.5 billion for the Corpus Christi liquefaction project.

    Imperial Oil confirmed a precautionary shutdown of its Alberta Kearl oil sands project due to a mechanical issue in one of the plant's units.

  • Data analysis GDF Suez Farms-Into Titan Discovery in Norway

    GDF Suez has signed a farm-in agreement with Statoil for a 10% stake in the PL 420 in Norway, which contains the Titan discovery. PL 420 is situated between Gjoa field and Skarfjell discovery.Post transaction ownership of PL 420: RWE Dea (30%, operator), Idemitsu (30%), Statoil (30%) and GDF Suez...

    GDF Suez Farms-Into Titan Discovery in NorwayData analysis
    Global Deals

    GDF Suez has signed a farm-in agreement with Statoil for a 10% stake in the PL 420 in Norway, which contains the Titan discovery. PL 420 is situated between Gjoa field and Skarfjell discovery.

    Post transaction ownership of PL 420: RWE Dea (30%, operator), Idemitsu (30%), Statoil (30%) and GDF Suez (10%).

    Source: Reuters

  • IMI to Acquire Power Valve Specialist Bopp & Reuther

    The British engineering company IMI Plc has announced the acquisition of Bopp & Reuther Holding GmbH for an enterprise value of €152.6 million (US$190 million).Bopp & Reuther is based in Mannheim, Germany, and is a global supplier of control valves and safety valves to the oil and gas and power...

    IMI to Acquire Power Valve Specialist Bopp & Reuther
    Global Deals, Others

    The British engineering company IMI Plc has announced the acquisition of Bopp & Reuther Holding GmbH for an enterprise value of €152.6 million (US$190 million).

    Bopp & Reuther is based in Mannheim, Germany, and is a global supplier of control valves and safety valves to the oil and gas and power sectors.

    View IMI press release

  • ADMA-OPCO Awards Nasr PMC Contract to Technip

    Technip has announced that the Abu Dhabi Marine Operating Company (ADMA-OPCO) a project management consultancy (PMC) contract for the EPC works of the Nasr Phase II Full Field Development project.The Nasr field is targeting 65 Mbbl/d of crude oil by using offshore process facilities, wellheads, pipelines and...

    ADMA-OPCO Awards Nasr PMC Contract to Technip
    Others

    Technip has announced that the Abu Dhabi Marine Operating Company (ADMA-OPCO) a project management consultancy (PMC) contract for the EPC works of the Nasr Phase II Full Field Development project.

    The Nasr field is targeting 65 Mbbl/d of crude oil by using offshore process facilities, wellheads, pipelines and facilities on Das Island.

    View Technip press release

  • Data analysis Salamander Receives $591 Million Takeover Offer from Cepsa

    Salamander Energy has received a proposed offer worth up to 145 pence  (US$0.228) a share from a consortium led by Cepsa. Salamander said that Cepsa’s proposal – which would value it at up to £375 million – was contingent upon irrevocable undertakings from the board and...

    Salamander Receives $591 Million Takeover Offer from CepsaData analysis
    Headlines, Global Deals

    Salamander Energy has received a proposed offer worth up to 145 pence  (US$0.228) a share from a consortium led by Cepsa. Salamander said that Cepsa’s proposal – which would value it at up to £375 million – was contingent upon irrevocable undertakings from the board and institutional investors, as well as a board recommendation.

    Cepsa’s proposed offer is for 121 pence a share as well as a contingent value right of up to 24 pence per share depending on the success of forthcoming exploration drilling in the Gulf of Thailand.

    View Salamander press release

     

     

  • Data analysis Halliburton in Talks to Acquire Baker Hughes

    Oilfield services provider Halliburton and Baker Hughes are in preliminary talks on a potential merger. Baker Hughes said that the discussions "may or may not lead to any transaction".The potential merger would create a drilling, logistics and well services giant worth $67 billion, initially with...

    Halliburton in Talks to Acquire Baker HughesData analysis
    Headlines, Global Deals

    Oilfield services provider Halliburton and Baker Hughes are in preliminary talks on a potential merger. Baker Hughes said that the discussions "may or may not lead to any transaction".

    The potential merger would create a drilling, logistics and well services giant worth $67 billion, initially with 140,000 employees.

    If a deal were struck, the companies could well have to sell assets to convince regulators they would not hurt competition, said Seth Bloom, a veteran of the US Department of Justice's antitrust division now in private practice.

    Source: Reuters

    View Baker Hughes press release

     

  • Data analysis PrairieSky Acquires Range Royalty for $615 Million

    PrairieSky Royalty has entered into an agreement to acquire Range Royalty Limited Partnership with approximately 3 MBOE/d (40% liquids) of high quality royalty production and 3.5 million acres of royalty lands for a total consideration of C$699 million (US$615 million).Range unitholders will receive 0.8...

    PrairieSky Acquires Range Royalty for $615 MillionData analysis
    Headlines, Global Deals

    PrairieSky Royalty has entered into an agreement to acquire Range Royalty Limited Partnership with approximately 3 MBOE/d (40% liquids) of high quality royalty production and 3.5 million acres of royalty lands for a total consideration of C$699 million (US$615 million).

    Range unitholders will receive 0.8 of a PrairieSky common share for each Range unit, resulting in approximately 19.33 million common shares of PrairieSky being issued on completion of the acquisition.

    View PrairieSky Royalty press release

  • Data analysis Genel Buys Out OMV in Bina Bawi Field

    Genel Energy announced the acquisition of a 36% stake in the Bina Bawi field from OMV for $150 million in cash. Post-transaction, the company will own 100% in the field. An initial payment of $20 million will be made on completion of the deal, with the remaining $130 million paid in two installments after...

    Genel Buys Out OMV in Bina Bawi FieldData analysis
    Headlines

    Genel Energy announced the acquisition of a 36% stake in the Bina Bawi field from OMV for $150 million in cash. Post-transaction, the company will own 100% in the field. An initial payment of $20 million will be made on completion of the deal, with the remaining $130 million paid in two installments after first gas.

    Genel also announced that it has reached an agreement with the Ministry of Natural Resources of Kurdistan Regional Government for the development of the Miran and Bina Bawi gas fields. The FID for the development of the two fields will be made in H1-2015.

    View Genel press release

  • Barra: Carcara Appraisal Hit 'Significant Pre-Salt Column'

    Barra Energia announced the conclusion of the Petrobras-operated Carcara well (4-SPS-86B), located in ultra-deep waters of Santos Basin in the Block BM-S-8. The well identified a significant pre-salt column of at least 471m of light oil of 31° API, starting at the depth of 5,742m, of which 402m consist of...

    Barra: Carcara Appraisal Hit 'Significant Pre-Salt Column'
    Headlines, Projects & Capex

    Barra Energia announced the conclusion of the Petrobras-operated Carcara well (4-SPS-86B), located in ultra-deep waters of Santos Basin in the Block BM-S-8. The well identified a significant pre-salt column of at least 471m of light oil of 31° API, starting at the depth of 5,742m, of which 402m consist of carbonate reservoirs with ‘excellent’ porosity and permeability properties. Several pressure data obtained indicate that these reservoirs are interconnected.

    Due to operational reasons it was not possible to reach the originally planned final depth of 7,000m and perform the additional evaluation works. The well was temporarily abandoned, thus remaining accessible for further operations in the future.

    Block BM-S-8 ownership: Petrobras (66%, operator), Galp-Sinopec (14%), QGEP (10%) and Barra Energia (10%).

    View Barra press release

  • SM Prices Upsized $600 Million Senior Notes Offering

    SM Energy has priced a private offering of $600 million of 6.125% senior unsecured notes due 2022. The company increased the size of the offering from the previously announced $400 million to $600 million. These senior notes will be issued at par.The offering is expected to close on 17-Nov-2014.View SM press...

    SM Prices Upsized $600 Million Senior Notes Offering
    Others

    SM Energy has priced a private offering of $600 million of 6.125% senior unsecured notes due 2022. The company increased the size of the offering from the previously announced $400 million to $600 million. These senior notes will be issued at par.

    The offering is expected to close on 17-Nov-2014.

    View SM press release

  • Sunoco Logistics Prices $1 Billion Senior Notes

    Sunoco Logistics Partners has priced $1 billion aggregate principal amount of senior notes. The offering consists of $200 million aggregate principal amount of 4.25% senior notes due 2024 and $800 million aggregate principal amount of 5.35% senior notes due 2045 of its wholly owned subsidiary, Sunoco...

    Sunoco Logistics Prices $1 Billion Senior Notes
    Others

    Sunoco Logistics Partners has priced $1 billion aggregate principal amount of senior notes. The offering consists of $200 million aggregate principal amount of 4.25% senior notes due 2024 and $800 million aggregate principal amount of 5.35% senior notes due 2045 of its wholly owned subsidiary, Sunoco Logistics Partners Operations LP.

    The 4.25% senior notes due 2024 are being offered as additional notes under an indenture pursuant to which the operating partnership issued $300 million aggregate principal amount of 4.25% senior notes due 2024 on 3-Apr-2014. The new 4.25% senior notes due 2024 and the existing 4.25% senior notes due 2024 will be treated as a single series of securities under such indenture. The sale of the senior notes is expected to settle on 17-Nov-2014.

    The 4.25% senior notes due 2024, maturing on 1-Apr-2024, were sold to the public at 101.772% of par value, and the 5.35% senior notes due 2045, maturing on 15-May-2045, were sold to the public at 99.331% of par value.

    View Sunoco press release