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NEWS

  • TransCanada Sells 30% in Bison Pipeline for $215 Million

    TransCanada has agreed to divest its 30% stake in Bison Pipeline LLC to its master limited partnership, TC PipeLines, for $215 million in cash.Bison consists of approximately 487 km of 30-inch-diameter natural gas pipeline and related pipeline system facilities that extend north-eastward from the Dead Horse...

    TransCanada Sells 30% in Bison Pipeline for $215 Million
    Headlines, Global Deals, Others

    TransCanada has agreed to divest its 30% stake in Bison Pipeline LLC to its master limited partnership, TC PipeLines, for $215 million in cash.

    Bison consists of approximately 487 km of 30-inch-diameter natural gas pipeline and related pipeline system facilities that extend north-eastward from the Dead Horse Region near Gillette, Wyoming, through south-eastern Montana and south-western North Dakota where it interconnects with Northern Border Pipeline Company’s system in Morton County, North Dakota. The pipeline was constructed in 2010 and placed into service in Jan-2011.

    View TransCanada press release

  • BP Awards $730 Million Drilling Contracts for Khazzan

    BP has awarded drilling contracts worth $730 million for the Khazzan project in Block 61, Oman.KCA Deutag was awarded $400 million in contracts for the construction and operation of five new build land rigs for Khazzan. The rigs are being assembled in Nizwa, Oman. Abraj Energy Service has been awarded more...

    BP Awards $730 Million Drilling Contracts for Khazzan
    Headlines, Projects & Capex, Others

    BP has awarded drilling contracts worth $730 million for the Khazzan project in Block 61, Oman.

    KCA Deutag was awarded $400 million in contracts for the construction and operation of five new build land rigs for Khazzan. The rigs are being assembled in Nizwa, Oman. Abraj Energy Service has been awarded more than $330 million contracts to supply three drilling rigs for the full field development of the Khazzan Project.

    The full field development of the Khazzan Project will involve a drilling programme of around 300 wells over 15 years to deliver plateau production of 1 Bcm/d of gas. This volume is equivalent to an increase of around a third of Oman’s total daily domestic gas supply.

    Ownership of Khazzan: BP (60%, operator) and Oman Oil Company for Exploration and Production (40%).

    View BP press release

  • Whitecap Acquires Forge Petroleum for $140 Million

    Whitecap Resources announced the acquisition of Forge Petroleum Corporation for up to C$158 million (US$140 million) in cash and shares. Almost 99% of issued and outstanding shares of Forge have been tendered pursuant to Whitecap’s offer to purchase Forge shares.Under the offer, Forge shareholders who...

    Whitecap Acquires Forge Petroleum for $140 Million
    Headlines, Global Deals

    Whitecap Resources announced the acquisition of Forge Petroleum Corporation for up to C$158 million (US$140 million) in cash and shares. Almost 99% of issued and outstanding shares of Forge have been tendered pursuant to Whitecap’s offer to purchase Forge shares.

    Under the offer, Forge shareholders who tender their shares will receive C$3.5812 (US$3.18) per share in cash and may receive an additional C$0.0688 per Forge share, subject to certain conditions.

    View Whitecap Resources press release

    Forge Petroleum is an E&P company with operations in the Plains area of Western Canada.

  • WS Atkins Buys Houston Offshore Engineering for $73 Million

    WS Atkins announced the acquisition of Houston Offshore Engineering LLC (HOE) for $73 million. HOE is an oil and gas offshore engineering business based in Houston, Texas.HOE has specialist experience in the design of offshore deep-water floating production platforms with an established project and client...

    WS Atkins Buys Houston Offshore Engineering for $73 Million
    Others

    WS Atkins announced the acquisition of Houston Offshore Engineering LLC (HOE) for $73 million. HOE is an oil and gas offshore engineering business based in Houston, Texas.

    HOE has specialist experience in the design of offshore deep-water floating production platforms with an established project and client base in the international oil and gas market.

    View WS Atkins press release

     

  • Enterprise to Build Gas Processing Plant in Delaware Basin

    Enterprise Products Partners LP announced plans to construct a new cryogenic natural gas processing plant in Eddy County, New Mexico, and associated natural gas and NGL pipeline infrastructure to facilitate growing production of NGL-rich natural gas in the Delaware Basin. These assets are expected to...

    Enterprise to Build Gas Processing Plant in Delaware Basin
    Projects & Capex, Others

    Enterprise Products Partners LP announced plans to construct a new cryogenic natural gas processing plant in Eddy County, New Mexico, and associated natural gas and NGL pipeline infrastructure to facilitate growing production of NGL-rich natural gas in the Delaware Basin. These assets are expected to begin operations in Q1-2016.

    The South Eddy natural gas processing plant will have an initial capacity of 200 MMcf/d, with the potential for future expansions. Upon completion, this will bring Enterprise’s total natural gas processing plant capacity in the Delaware Basin to 400 MMcf/d.

    View Enterprise press release

  • Det Norske Wildcat Near Visund Field Disappoints
    Exploration

    The Norwegian Petroleum Directorate revealed that the Det Norske-operated wildcat well (34/7-36 S) was dry. The well was located in PL 533 and was drilled 10 km west of the Visund field in the North Sea in a water depth of 304 m.

    The primary and secondary exploration targets for the well were to prove petroleum in Upper Jurassic reservoir rocks (Intra Draupne and Intra Heather formation sandstones, respectively). The well did not encounter any reservoir in the Draupne formation, while thin reservoir sands of poor quality were encountered in the Heather formation. There are also traces of petroleum in sandstones in the Lista formation from the Palaeocene Age.

    This is the first exploration well in PL 553, which was awarded in APA 2009.

    The well was bored to a vertical depth of 3639m below the sea surface and was terminated in the Etive formation from the Middle Jurassic Age. The well has been permanently plugged and abandoned.

    View NPD press release

    Ownership of PL553: Det Norske (40%, operator), Svenska Petroleum (35%) and Bayerngas (25%).

    View Det Norske operations webpage

  • Huntington Production to be Shut Down Again

    Noreco reported that the Huntington field in the North Sea will be shut down in a phased manner starting 1-Oct-2014 to coincide with scheduled maintenance shutdown of the Central Area Transmission System (CATS).The field will produce about 3.5 MBOE/d (net to Noreco) till 18-Oct-2014 after which, the CATS...

    Huntington Production to be Shut Down Again
    Projects & Capex

    Noreco reported that the Huntington field in the North Sea will be shut down in a phased manner starting 1-Oct-2014 to coincide with scheduled maintenance shutdown of the Central Area Transmission System (CATS).

    The field will produce about 3.5 MBOE/d (net to Noreco) till 18-Oct-2014 after which, the CATS pipeline will restrict Huntington to zero gas export until the end of Oct-2014. Noreco added that as previously indicated, a planned shut-down from 1-Nov-2014 until 5-Dec-2014 will result in no oil production for the period.

    View Noreco press release

  • Gaz Metro, Quebec to Triple Capacity of Montreal LNG Plant

    Gaz Métro has signed an agreement with the Quebec government to increase the liquefaction capacity at the Gaz Metro plant in eastern Montreal. As part of the agreement, the government will have a C$50 million (US$44.5 million) stake in Gaz Métro LNG, the subsidiary responsible for marketing...

    Gaz Metro, Quebec to Triple Capacity of Montreal LNG Plant
    Others

    Gaz Métro has signed an agreement with the Quebec government to increase the liquefaction capacity at the Gaz Metro plant in eastern Montreal. As part of the agreement, the government will have a C$50 million (US$44.5 million) stake in Gaz Métro LNG, the subsidiary responsible for marketing of the LNG.

    The project is expected to cost $118 million and will triple plant capacity. Work on the expansion will commence in May-2015 and continue until Jun-2016, with deliveries available to customers in H1-2016.

    View Gaz Métro press release

  • Magnum Hunter Sells Non-Core Assets in North Dakota

    Magnum Hunter announced the sale of certain non-core assets in Divide County, North Dakota, to an affiliate of Formation Energy for $23 million in cash. The Properties currently account for approximately 170 BOE/d of average production, net to the ownership interest sold to the buyer, and consist of a...

    Magnum Hunter Sells Non-Core Assets in North Dakota
    Others

    Magnum Hunter announced the sale of certain non-core assets in Divide County, North Dakota, to an affiliate of Formation Energy for $23 million in cash. The Properties currently account for approximately 170 BOE/d of average production, net to the ownership interest sold to the buyer, and consist of a non-operated working interest in approximately 34,600 gross (2,852 net) leasehold acres.

    View Magnum Hunter press release

  • Data analysis Murphy Oil Sells 30% in Malaysian Assets to Pertamina

    Murphy Oil announced that it will sell 30% of its Malaysian assets to Pertamina for $2 billion cash.The transaction will be completed in two phases, with the first phase expected to be completed in the Q4-2014 and the second phase in Q1-2015. Murphy will remain operator and continue to execute its development...

    Murphy Oil Sells 30% in Malaysian Assets to PertaminaData analysis
    Headlines, Global Deals

    Murphy Oil announced that it will sell 30% of its Malaysian assets to Pertamina for $2 billion cash.

    The transaction will be completed in two phases, with the first phase expected to be completed in the Q4-2014 and the second phase in Q1-2015. Murphy will remain operator and continue to execute its development plans as well as grow through future exploration in both deep-water and shallow-water Malaysia.

    Roger W. Jenkins, President and Chief Executive Officer, commented, "This transaction marks the value of the high-margin, long-term assets in our Malaysian business… We will continue to evaluate all aspects of our portfolio. This transaction allows us to re-deploy the proceeds through an individual or combination of strategic and financial initiatives such as increased drilling capital in the Eagle Ford Shale, acquisition opportunities, debt reduction and share repurchases."

    View Murphy press release

  • Dana Gas Signs Production Enhancement Agreement with Egypt

    Dana Gas signed a Gas Production Enhancement Agreement (GPEA) with the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Company (EGPC). Under the GPEA Dana Gas will undertake a long term staged work program over a seven year period with project work expected to start in the next...

    Dana Gas Signs Production Enhancement Agreement with Egypt
    Projects & Capex

    Dana Gas signed a Gas Production Enhancement Agreement (GPEA) with the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Company (EGPC). Under the GPEA Dana Gas will undertake a long term staged work program over a seven year period with project work expected to start in the next few months and first export sales of incremental volumes of condensate following the completion of tie-in activities. 

    As part of its work program, Dana Gas plans to drill 37 new wells and carry out an equivalent number of work-overs of existing wells. Estimated incremental production during the period will be approximately 270 Bcf of natural gas, 8 to 9 Mbbl of condensate and around 450,000 tons of LPG. Peak production is expected to occur in 2017 with incremental production of approximately 160 MMcf/d of gas and 5.6 Mbbl/d of condensate.

    View Dana Gas press release

  • Bellatrix, Grafton Asset Management Form $250 Million JV

    Bellatrix Exploration announced that it has entered into a new multi-year JV with Grafton Asset Management Inc for a commitment of $250 million to accelerate development of Bellatrix’s undeveloped land holdings. Grafton will invest the $250 million through Canadian Non-Operated Resources Corp...

    Bellatrix, Grafton Asset Management Form $250 Million JV
    Headlines, Others

    Bellatrix Exploration announced that it has entered into a new multi-year JV with Grafton Asset Management Inc for a commitment of $250 million to accelerate development of Bellatrix’s undeveloped land holdings. Grafton will invest the $250 million through Canadian Non-Operated Resources Corp (CNOR).

    Under the terms of the agreement, CNOR will pay 50% of the drilling, completion, equipping and tie-in capital expenditures associated with development plans in order to earn 33% of Bellatrix's WI before payout and automatically converting to a 10.67% gross overriding royalty on Bellatrix's pre-JV working interest after payout. The JV funding is available immediately; however, Bellatrix expects the funds to be spent primarily from 2016 through 2018.

    View Bellatrix press release

  • Leviathan Partners Submit $6.5 Billion Development Plan

    The partners in Leviathan, Israel’s largest natural gas field, have submitted their initial development plan to Israeli authorities. The group, led by Texas-based Noble Energy and Israel's Delek Group, handed in its proposal after months of trying to determine the best way to develop the...

    Leviathan Partners Submit $6.5 Billion Development Plan
    Headlines, Projects & Capex

    The partners in Leviathan, Israel’s largest natural gas field, have submitted their initial development plan to Israeli authorities. The group, led by Texas-based Noble Energy and Israel's Delek Group, handed in its proposal after months of trying to determine the best way to develop the Mediterranean field, which lies in about 1500m of water about 130 km off Israel's coast.

    A spokeswoman for Israel's Energy Ministry, which must now approve the plan, confirmed it had been received, but disclosed no details.

    Source: Reuters

  • Algeria Awards Four Oil and Gas Blocks

    Algeria announced the award of four of the 31 oil and gas field blocks on offer to foreign consortiums in its first auction since 2011. Shell and Repsol won the Boughezoul area in the north of the country while Shell and Statoil won the Timissit area in the east. A consortium of Enel and Dragon Oil won the...

    Algeria Awards Four Oil and Gas Blocks
    Others

    Algeria announced the award of four of the 31 oil and gas field blocks on offer to foreign consortiums in its first auction since 2011. Shell and Repsol won the Boughezoul area in the north of the country while Shell and Statoil won the Timissit area in the east. A consortium of Enel and Dragon Oil won the Tinrhert and Msari Akabli areas.

    Source: Reuters

     

  • Enagas, Fluxys Buy Out Total and E.On in TAP Project
    Headlines, Others

    Enagás and Fluxys have signed an agreement to acquire 19% of Total and E.On’s stake in the Trans Adriatic Pipeline (TAP) project. Post-transaction, Enagás will own 16% while Fluxys will hold 19%, a gain of 3% in the pipeline project.

    The TAP project involves the construction of an 871 km long pipeline linking Turkey and Italy and running through Greece and Albania, including the associated compressor stations. The pipeline will run for 547 km through Greece, 211 km through Albania, 8 km through Italy and 105 km offshore under the Adriatic Sea, with an initial annual capacity of 10 Bcm. In line with the timetable of the Shah Deniz field in the Caspian Sea, first gas deliveries of gas to TAP in Europe are scheduled for approximately 2019.

    Post- transaction ownership of TAP: BP (20%), Socar (20%), Statoil (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).

    Vew Enagas press release

    View TAP webpage

  • FERC Approves Cove Point LNG Project

    Dominion announced that the US FERC has approved the construction and site of the Cove Point LNG liquefaction and export project. The construction of the export project is estimated to cost between $3.4 billion and $3.8 billion.Cove Point is the fourth liquefied natural gas export project to receive...

    FERC Approves Cove Point LNG Project
    Others

    Dominion announced that the US FERC has approved the construction and site of the Cove Point LNG liquefaction and export project. The construction of the export project is estimated to cost between $3.4 billion and $3.8 billion.

    Cove Point is the fourth liquefied natural gas export project to receive approval to site, construct and operate and is the first such project on the US East Coast.

    Dominion added that it has fully subscribed the marketed capacity of the project with 20-year service agreements with ST Cove Point, LLC, a JV of Sumitomo Corporation and Tokyo Gas; and GAIL.

    View Dominion press release

  • EnLink Midstream to Acquire Gulf Coast Gas Pipeline Systems

    EnLink Midstream Partners LP and EnLink Midstream LLC announced the acquisition of Gulf Coast gas pipeline assets including the Bridgeline system from Chevron for $235 million.The natural gas assets include approximately 1,400 miles of pipelines spanning from Beaumont, Texas, to the Mississippi River corridor...

    EnLink Midstream to Acquire Gulf Coast Gas Pipeline Systems
    Headlines, Global Deals

    EnLink Midstream Partners LP and EnLink Midstream LLC announced the acquisition of Gulf Coast gas pipeline assets including the Bridgeline system from Chevron for $235 million.

    The natural gas assets include approximately 1,400 miles of pipelines spanning from Beaumont, Texas, to the Mississippi River corridor and approximately 11 Bcf of working natural gas storage capacity in Southern Louisiana. The assets include the Bridgeline system, the Sabine system, the Chandeleur system, storage assets comprising six caverns, and ownership and management of the title tracking services offered at Henry Hub.

    View EnLink press release

  • Pioneer to Double US Condensate Exports to 50 Mbbl/d in 2015

    Pioneer Natural Resources plans to double condensate exports from the US to 50 Mbbl/d in 2015. Scott Sheffield, CEO, Pioneer Natural, said: "We operate 50 Mbbl/d and we're selling probably about 20-25 Mbbl/d, but eventually we'll get up to 50 Mbbl/d."Pioneer sells processed condensate from...

    Pioneer to Double US Condensate Exports to 50 Mbbl/d in 2015
    Headlines, Others

    Pioneer Natural Resources plans to double condensate exports from the US to 50 Mbbl/d in 2015. Scott Sheffield, CEO, Pioneer Natural, said: "We operate 50 Mbbl/d and we're selling probably about 20-25 Mbbl/d, but eventually we'll get up to 50 Mbbl/d."

    Pioneer sells processed condensate from its Eagle Ford shale site to Enterprise Product Partners, which markets the oil to foreign buyers. Sheffield said a third cargo was on its way to Singapore after the first two cargoes went to South Korea and Europe.

    Source: Reuters

  • Data analysis Encana Buys Athlon Energy for $7.1 Billion

    Encana Corporation has entered into a definitive agreement to acquire Athlon Energy for $5.93 billion in cash and $1.15 billion of senior notes. The acquisition will add Athlon's land position of approximately 140,000 net acres focused solely in the heart of the oil-rich Midland Basin to Encana's...

    Encana Buys Athlon Energy for $7.1 BillionData analysis
    Headlines, Global Deals

    Encana Corporation has entered into a definitive agreement to acquire Athlon Energy for $5.93 billion in cash and $1.15 billion of senior notes. The acquisition will add Athlon's land position of approximately 140,000 net acres focused solely in the heart of the oil-rich Midland Basin to Encana's portfolio.

    Encana expects that the transaction will add current production of about 30 MBOE/d based on Athlon's current estimated production including recent acquisitions. The company sees the potential for approximately 5,000 Hz well locations with potential recoverable resource of approximately 3 BBOE. In 2015, the company intends to invest at least $1 billion of capital in the play and ramp-up from three to at least seven horizontal rigs by year-end 2015.

    The company added that the Permian will play an important part within its growth portfolio, contributing significantly to its projected total liquids production of around 250 Mbbl/d by 2017.

    Doug Suttles, Encana President & CEO, commented: "This transformative acquisition further accelerates our strategy and provides us with a prime position in what is widely acknowledged as one of North America's top oil plays."

    View Encana press release

  • Total Looks to Exit Tahiti Oilfield in DW GoM
    Headlines, Global Deals

    Total is looking to sell its 17% stake in the Tahiti oilfield in the Gulf of Mexico. The stake could fetch between $1.5-2 billion in a deal, according to people familiar with the matter. Bank of Nova Scotia is working on the sale on behalf of Total's US oil and gas exploration and production unit Total E&P USA Inc, one of the people said.

    The Tahiti field is located approximately 180 miles south of New Orleans, Louisiana, in the Green Canyon area at a water depth of 4,100-4,300 ft.

    Source: Reuters

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

  • Tana Puts GoM Assets Up for Sale
    Global Deals

    Tana Exploration Company has put its GoM portfolio up for sale. The company added that it is looking to sell all its interest in the properties in a single transaction. The assets comprise of 14 producing properties with net production of 1.5 Mbbl/d and 15.5 MMcf/d of gas. Four new discoveries are forecast to come online between Nov-2014 and May-2015 with net production of 2.5 Mbbl/d and 26.3 MMcf/d.

    Net production by May-2015 is expected to be 4.1 Mbbl/d of oil and 41.7 MMcf/d of gas.

    The company is targeting closing a sale by 17-Dec-2014.

    View Tana Exploration press release

  • Dana Gas Wins Two Exploration Blocks in Egypt

    Dana Gas has secured two exploration deals for onshore gas blocks in Egypt. The company will fully own and operate the North El Salhiya onshore concession area, known as Block 1. The company will partner BP to explore El Matariya (Block 3) on a 50:50 ownership basis. BP will also fund Dana’s share of...

    Dana Gas Wins Two Exploration Blocks in Egypt
    Exploration, Others

    Dana Gas has secured two exploration deals for onshore gas blocks in Egypt. The company will fully own and operate the North El Salhiya onshore concession area, known as Block 1. The company will partner BP to explore El Matariya (Block 3) on a 50:50 ownership basis. BP will also fund Dana’s share of cost of the first exploration well in Block 3.

    The two blocks have a six-year exploration period, comprised of two phases of three years each. A 20-year development lease period will be granted to each block, based on approved commercial discovery. The two concessions, which cover 1,527 sq km and 960 sq km respectively, were awarded as part of the EGAS international bid round in August 2014.

    View Dana press release

  • Rosneft, ExxonMobil Discover Hydrocarbons in Kara Sea

    Rosneft and ExxonMobil announced the discovery of a new hydrocarbon field in the Kara Sea. The announcement follows the successful completion of the drilling of the northernmost well in the world – the Universitetskaya-1 well, at the East-Prinovozemelskiy-1 license area in the Arctic. The field has been...

    Rosneft, ExxonMobil Discover Hydrocarbons in Kara Sea
    Headlines, Exploration

    Rosneft and ExxonMobil announced the discovery of a new hydrocarbon field in the Kara Sea. The announcement follows the successful completion of the drilling of the northernmost well in the world – the Universitetskaya-1 well, at the East-Prinovozemelskiy-1 license area in the Arctic. The field has been named Pobeda.

    The sea depth at the drilling site is 81m and the the depth of the straight well is 2,113m. The well was drilled in open-water conditions – at the 74th circle of longitude, 250 km offshore.

    Igor Sechin, head of Rosneft, said: “I can inform you about the discovery of the first oil/gas-condensate field in the new Kara Sea oil province. The first oil was extracted. It is an astonishing sample of light oil, which based on the results of the analysis performed, is comparable to the Siberian Light oil. The resource base estimate of just this oil trap is 338 Bcm of gas and more than 100 MMT of oil.”

    Ownership of East Prinovozemelskiy Block 1: Rosneft (66.67%, operator) and ExxonMobil (33.33%).

    View Rosneft press release

  • NiSource to Spin-Off Gas Pipeline Business

    NiSource revealed plans to separate its natural gas pipeline and related business into a stand-alone publicly traded company, to be called the Columbia Pipeline Group (CPG). The spin-off is expected to be completed in mid-2015.CPG will include Columbia Gas Transmission, Columbia Gulf Transmission, NiSource...

    NiSource to Spin-Off Gas Pipeline Business
    Headlines, Global Deals

    NiSource revealed plans to separate its natural gas pipeline and related business into a stand-alone publicly traded company, to be called the Columbia Pipeline Group (CPG). The spin-off is expected to be completed in mid-2015.

    CPG will include Columbia Gas Transmission, Columbia Gulf Transmission, NiSource Midstream Services, and other current NiSource natural gas pipeline, storage and midstream holdings. The company will operate more than 15,000 miles of natural gas transmission pipelines, nearly 300 Bcf of underground natural gas storage capacity, and a growing portfolio of midstream and related facilities. The CPG system provides access to energy markets from the U.S. Southeast through the Northeast, as well as strategic asset positions throughout the Marcellus and Utica Shale production regions. 

    NiSource stated that CPG’s projects and a long-term system modernization program represents a $12-15 billion potential capital investment opportunity over the next 10 years.

    View NiSource press release

  • Highlights of the Week Ending 27-Sep-2014

    Global DealsThe US unconventional M&A space witnessed a flurry of deals. Cabot Oil & Gas bought 30,000 acres in Eagle Ford for $210 million and Atlas Resource Partners expanded its Eagle Ford footprint in a $225 million deal. Bravo Natural Resources acquired producing and...

    Highlights of the Week Ending 27-Sep-2014
    Headlines, Global Deals, Projects & Capex, Exploration

    Global Deals

    The US unconventional M&A space witnessed a flurry of deals. Cabot Oil & Gas bought 30,000 acres in Eagle Ford for $210 million and Atlas Resource Partners expanded its Eagle Ford footprint in a $225 million deal. Bravo Natural Resources acquired producing and gathering assets in Oklahoma's Arkoma Basin for $250 million.

    Cairn Energy farmed-out a 10% interest in the Catcher development and adjacent acreage in the UK North Sea to Dyas in return for a funding commitment of up to $182 million for development costs. Meanwhile in the Far East, Otto sold its stake in the Galoc oilfield in Philippines for $101 million to Risco Energy and Ramba Energy offloaded its interest in Sumatra's Lemang Block to Risco Energy Investments for $158 million.

    The week also saw heavy M&A activity in the midstream, downstream and OFS segments. Siemens announced the buyout of Dresser-Rand for $7.6 billion while Veresen acquired a 50% interest in the Ruby pipeline system in the Rockies for $1.43 billion.

    Total divested its stake in Cardinal Gas Services for $450 million to E1 Corp and a consortium led by Samchully, both South Korean companies. Total also revealed plans to sell $10 billion of non-core assets in 2015-2017.

    Exploration

    Magnum Hunter flowed gas from its first Utica well in the Tyler County, West Virginia. The well flowed at a peak rate of 46.5 MMcf/d. Statoil revealed that Norway's PSA has given its nod to drill the Krafla North wildcat and an appraisal well in the northern North Sea. The company also announced a gas discovery at the Pingvin prospect in the Barents Sea.

    Eni secured three exploration licenses in Egypt in the 2013 EGPC and EGAS bid rounds. Petrobras and ONGC revealed a gas find in the Poco Verde extension well offshore Brazil.

    Projects and Capex

    In a sign of momentum building up as Mexico opens up its oil and gas sector to outsiders, Sierra Oil & Gas raised $525 million in PE funding from Riverstone Holdings, EnCap Investments and Infraestructura Institucional.

    Canada suffered a double blow from Petronas and Statoil. Petronas warned that it could pull out of Canada LNG project in British Columbia if the country does not expedite progress on a taxation plan for its domestic LNG industry. Statoil announced that it will delay Alberta's Corner oil sands project due to high costs. 

    Meanwhile the Norwegian government announced that it would outline the electrification plans of the Johan Sverdrup oilfield by early 2015.

  • ADB Selling $120 Million Stake in Petronet LNG
    Headlines, Global Deals

    Asian Development Bank (ADB) has launched a share sale in Indian gas supplier Petronet LNG to raise up to $120 million, three sources with direct knowledge of the deal said.

    ADB, which owned a 5.2% stake in Petronet LNG as of end-Jun-2014, will sell the shares through block deals on the stock exchange, said the sources, who declined to be named as the deal details are not public yet.

    Source: Reuters

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

  • Statoil Makes Gas discovery at Pingvin ProspectData analysis
    Headlines, Exploration

    Statoil has made a gas discovery at the Pingvin prospect in the Barents Sea's PL713. The discovery well 7319/12-1, drilled to a vertical depth of 1500m, proved a 15m gas column in the well path. Statoil estimates the recoverable volumes in Pingvin to be in the range of 30-120 MMBOE. The discovery is currently assessed as non-commercial and the well has been permanently plugged and abandoned..

    Dan Tuppen, VP-Exploration (Barents Sea and Norwegian Sea) commented: "Pingvin is the first well drilled in PL713 - a large frontier area northwest of Johan Castberg awarded in the 22nd concession round. For a discovery in this area to be commercially viable it needs to be an oil accumulation of a significant size."

    Ownership of PL713: Statoil (40%, operator), RN Nordic Oil (20%), North Energy (20%) and Edison (20%).

    View Statoil press release

    View Norwegian Petroleum Directorate press release

  • Data analysis San Leon Spuds Kety Well in Poland

    San Leon Energy is spudding the Kety exploration well, which is the first well of a three-well planned program in the Karpaty area and Permian Basin in Poland. Drilling of the well is expected to be completed by mid-Oct-2014, with completion and testing planned by end-Oct-2014, if the well is successful.The...

    San Leon Spuds Kety Well in PolandData analysis
    Exploration

    San Leon Energy is spudding the Kety exploration well, which is the first well of a three-well planned program in the Karpaty area and Permian Basin in Poland. Drilling of the well is expected to be completed by mid-Oct-2014, with completion and testing planned by end-Oct-2014, if the well is successful.

    The Kety well, which is on the Bestwina Concession in Karpaty, is targeting gas in the Miocene sandstone with an estimated 4 Bcf mid-case recoverable from the prospect.

    Following completion of the Kety well, the rig will move to drill the Gieratowice prospect, which is in the Bielsko-Biata concession, also in Karpaty. This well 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.

    Ownership of Bestwina Concession: San Leon (60%, operator) and PGNiG (40%).

    View San Leon press release

  • Senex Plugs Hathi-1 Well in Cooper BasinData analysis
    Exploration

    Planet Gas announced that Senex Energy is plugging the Hathi-1 exploration well located in PEL 514 in the South Australian Cooper Basin. The wireline logs of the well indicated that ‘trace hydrocarbons’ were intersected.

    Senex is now preparing to drill the Bagheera East-1 well located about 10 km north-east of Hathi-1. The well will be drilled to a total depth of 2,510m and will test the oil potential of the Tichoo Formation with the Poolowanna and Birkhead formations and the Hutton Sandstone as secondary targets.

    Ownership of PEL 514: Senex Energy (80%, operator) and Planet Gas (20%).

    View Planet Gas press release

  • Petronas Warns it Could Pull Out of Canada LNG Project

    Petronas said that it might pull out of the Pacific NorthWest LNG project located in British Columbia due to the country's slow progress in developing a taxation plan. Shamsul Abbas, CEO of Petronas, said that he doubted the company would be able to make a final decision on investing in the project by the...

    Petronas Warns it Could Pull Out of Canada LNG Project
    Headlines, Projects & Capex

    Petronas said that it might pull out of the Pacific NorthWest LNG project located in British Columbia due to the country's slow progress in developing a taxation plan. Shamsul Abbas, CEO of Petronas, said that he doubted the company would be able to make a final decision on investing in the project by the end of this year and that the project remains "uncertain".

    Petronas plans to build the LNG terminal near the Pacific Coast city of Prince Rupert, to ship natural gas to Asia. But Petronas has said giving final approval to the project will hinge on whether the provincial government spells out a tax regime for the nascent LNG industry before 2015.

    The province's governing Liberals have promised the taxation legislation will come out in Oct-2014, and be approved by the legislature by end-Nov-2014.

    Petronas said that it will proceed with financing and evaluation as planned until a decision is made.

    Source: Reuters

  • Santos: Final Modules Arrive at GLNG Plant
    Headlines, Projects & Capex

    Santos announced that the final modules for the Queensland's GLNG project have arrived on the site in Curtis Island. The two steel structures have a combined weight of more than 2,890 tons, and mark the completion of 15 million work hours over two and a half years to construct and deliver a total of 111 modules to the plant.

    Built at Batangas in the Philippines, the modules make up the two LNG processing units – known as trains – that will convert natural gas into liquid by cooling it to -161ºC.

    Ownership of GLNG: Santos (30%), Petronas (27.5%), Total (27.5%) and KOGAS (15%).

    View Santos press release

    View Santos GLNG operations webpage

  • BHP, Pemex to Exchange Deepwater Expertise

    BHP Billiton and Pemex signed an MoU to exchange technical knowledge and information in activities related to the oil and gas industry.Tim Cutt, President of BHP, said: “We are very pleased to have the opportunity to work with Pemex due to its exceptional capability and experience...We see considerable...

    BHP, Pemex to Exchange Deepwater Expertise
    Headlines

    BHP Billiton and Pemex signed an MoU to exchange technical knowledge and information in activities related to the oil and gas industry.

    Tim Cutt, President of BHP, said: “We are very pleased to have the opportunity to work with Pemex due to its exceptional capability and experience...We see considerable opportunity in Mexico following the recent economic reforms, and we are excited about the deep-water and the extension of the Paleogene play into the Perdido play.”

    View BHP press release

  • Data analysis Susser Buys Aloha Petroleum for $240 Million

    Susser Petroleum Partners has signed an agreement to acquire Hawaii-based Aloha Petroleum for $240 million.Aloha Petroleum is a gasoline marketer and one of the largest convenience store operators in Hawaii, with an extensive wholesale fuel distribution network and six fuel storage terminals on the...

    Susser Buys Aloha Petroleum for $240 MillionData analysis
    Headlines, Global Deals

    Susser Petroleum Partners has signed an agreement to acquire Hawaii-based Aloha Petroleum for $240 million.

    Aloha Petroleum is a gasoline marketer and one of the largest convenience store operators in Hawaii, with an extensive wholesale fuel distribution network and six fuel storage terminals on the islands.

    Aloha currently markets through approximately 100 Shell, Aloha, and Mahalo branded fuel stations throughout the state, about half of which are company operated.  

    View Susser press release

  • Statoil Postpones Alberta's Corner Oil Sands Project

    Statoil has decided to postpone the previously planned Corner Field development at the Kai Kos Dehseh oil sands project in Alberta, Canada. Statoil Head-Canada Ståle Tungesvik said, “Despite the improvements made in the Corner business case, we have decided not to go any further with the project...

    Statoil Postpones Alberta's Corner Oil Sands Project
    Headlines, Projects & Capex

    Statoil has decided to postpone the previously planned Corner Field development at the Kai Kos Dehseh oil sands project in Alberta, Canada. Statoil Head-Canada Ståle Tungesvik said, “Despite the improvements made in the Corner business case, we have decided not to go any further with the project at this stage. Costs for labor and materials have continued to rise in recent years and are working against the economics of new projects.”

    The Corner project is being postponed for a minimum of three years. As a consequence of the Corner decision, a staff reduction of 70 employees is expected.

    View Statoil press release

  • CB&I Bags FEED Contract for Algeria's Ain Tsila Gas Field
    Others

    CB&I has been awarded a contract by Groupement Isarene (a JV between Sonatrach, Petroceltic International and Enel) to provide FEED services for the Ain Tsila gas field in Algeria.

    The scope of work includes FEED development for a grassroots 420 MMcf/d gas plant facility, plus three associated pipelines and well collection. The gas plant facility will include a gas processing plant with water separation, condensate and liquefied petroleum gas recovery equipment, gas compression, export pumps and metering facilities.

    View CB&I press release

    Ownership of Ain Tsila Field: Petroceltic (38.25%, operator), Sontrach (43.375%) and Enerl (18.375%).

    View Petroceltic's Algeria operations webpage

  • Xcite Moves into Pre-FEED Stage at Bentley FieldData analysis
    Projects & Capex

    Xcite Energy has now moved into the pre-FEED stage on the platform for its Bentley oilfield development in the northern UK North Sea. The oilfield is located on the East Shetland Platform in the UK Northern North Sea and is expected to deliver over 35 years of production.

    Arup is working with Xcite Energy Resources to optimise its ACE platform design for the Bentley oilfield.

    View Arup press release

    View Xcite's Bentley webpage

  • Data analysis Statoil to Drill Krafla Wells in N North Sea

    Statoil has received consent from Norway’s Petroleum Safety Authority (PSA) to drill wildcat well 30/11-10 (Krafla North) and appraisal well 30/11-10 A (Krafla Main) located in the northern North Sea's PL272/035. Water depth at the site is approximately 104m.The well is to be drilled using...

    Statoil to Drill Krafla Wells in N North SeaData analysis
    Exploration

    Statoil has received consent from Norway’s Petroleum Safety Authority (PSA) to drill wildcat well 30/11-10 (Krafla North) and appraisal well 30/11-10 A (Krafla Main) located in the northern North Sea's PL272/035. Water depth at the site is approximately 104m.

    The well is to be drilled using Transocean Leader semi-sub mobile drilling facility, which is operated by Transocean. The earliest start to drilling is set at mid-Oct-2014 and is estimated to last 78 days.

    View PSA press release

    Ownership of PL272/035: Statoil (50%, operator), Det Norske (25%) and Svenska Petroleum (25%).

  • Eni Wins Three Exploration Licenses in Egypt

    Eni has won three exploration licenses in Egypt during the 2013 EGPC and EGAS bid rounds. The new licenses will be formally awarded soon, after the ratification and finalization of the concession agreements.As a result of the EGPC bid round, Eni has won 100% participating interest and operatorship of the...

    Eni Wins Three Exploration Licenses in Egypt
    Others

    Eni has won three exploration licenses in Egypt during the 2013 EGPC and EGAS bid rounds. The new licenses will be formally awarded soon, after the ratification and finalization of the concession agreements.

    As a result of the EGPC bid round, Eni has won 100% participating interest and operatorship of the onshore block South-West Melehia. The block is located in Egypt’s Western desert.

    As a result of the EGAS bid round, Eni will become the operator of Block 8 and Block 9, located in deep offshore waters of the Mediterranean Sea, near the boundary with Cypriot waters. In Block 8, Eni will be partner with BP, with both companies holding a 50% equity interest and in Block 9, Eni will hold 100% equity.

    View Eni press release

  • PDVSA Asset Sales May Shield Venezuela from Seizures

    PDVSA's rushed move to sell its assets raises questions whether Venezuela wants to reduce international exposure to avoid potential asset grabs in the event companies win arbitration cases against the country.The company is seeking to sell its major US refining unit Citgo Petroleum, as well as stakes in...

    PDVSA Asset Sales May Shield Venezuela from Seizures
    Global Deals

    PDVSA's rushed move to sell its assets raises questions whether Venezuela wants to reduce international exposure to avoid potential asset grabs in the event companies win arbitration cases against the country.

    The company is seeking to sell its major US refining unit Citgo Petroleum, as well as stakes in the Hovensa refinery in the US Virgin Islands, the Chalmette refinery in Louisiana, and a network of refineries in Sweden, England and Scotland.

    The socialist government has shrouded the potential deals in secrecy, leaving analysts and industry players scrambling to piece together a rationale for the surprise divestment.

    Source: Reuters

  • Data analysis Lundin Acquires Interest in PM328 Off Malaysia

    Lundin Petroleum has inked an agreement to acquire 50% operated-interest in Petronas' PM328 Block off Malaysia.The initial PSC term is for three years; within the first 18 months Lundin has committed to undertake the acquisition of 600 sq km of 3D seismic. Lundin then has the option to commit to drilling...

    Lundin Acquires Interest in PM328 Off MalaysiaData analysis
    Global Deals

    Lundin Petroleum has inked an agreement to acquire 50% operated-interest in Petronas' PM328 Block off Malaysia.

    The initial PSC term is for three years; within the first 18 months Lundin has committed to undertake the acquisition of 600 sq km of 3D seismic. Lundin then has the option to commit to drilling one well in the remaining 18 months, or elect to hand back its interests to Petronas without penalty.

    Post-transaction ownership of PL328: Lundin (50%, operator), Petronas (40%) and E&P Malaysia Venture Sdn Bhd (10%).

    View Lundin press release

  • Data analysis Cairn Farms-Out Stake in Five UK Continental Shelf Licenses

    Cairn Energy has entered into a farm-out agreement with Dyas for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea. Under the agreement, Dyas will acquire 10% in each of the five UK Continental Shelf licenses - P1430, P2040, P2070, P2077 and P2086 - by funding...

    Cairn Farms-Out Stake in Five UK Continental Shelf LicensesData analysis
    Global Deals

    Cairn Energy has entered into a farm-out agreement with Dyas for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea. Under the agreement, Dyas will acquire 10% in each of the five UK Continental Shelf licenses - P1430, P2040, P2070, P2077 and P2086 - by funding Cairn's exploration and development costs in respect of the licenses up to a cap of $182 million.

    As a result of this transaction, Cairn will reduce its capital expenditure to the end of 2017 in the Catcher area by approximately $380 million to $200 million.

    View Cairn press release

  • PNG Wants Total to Develop 'Disputed' Gas Field

    Papua New Guinea (PNG) wants Total to lead construction of a new LNG export project drawing gas from a 'disputed' field (Elk and Antelope fields) instead of the gas being used to expand an existing giant project.Total earlier this year bought a 40% stake in PNG's biggest undeveloped gas...

    PNG Wants Total to Develop 'Disputed' Gas Field
    Others

    Papua New Guinea (PNG) wants Total to lead construction of a new LNG export project drawing gas from a 'disputed' field (Elk and Antelope fields) instead of the gas being used to expand an existing giant project.

    Total earlier this year bought a 40% stake in PNG's biggest undeveloped gas deposit, the Elk and Antelope fields, from InterOil. However, Oil Search, a partner in Exxon Mobil's project, has challenged Total's purchase of the stake, saying it held the right to buy the stake. The dispute is due to go into arbitration in Nov-2014.

    InterOil and Total want to develop the Elk and Antelope fields and build a new LNG project, while Exxon Mobil and Oil Search see the fields as a potential source of gas for an expansion of the PNG LNG project. PNG energy minister Nixon Duban said gas from Elk and Antelope was unlikely to be fed into the existing plant, and that he would prefer a separate LNG plant to be built.

    Source: Reuters

  • Rosneft May Back Out of Morgan Stanley Oil Unit Deal
    Headlines, Global Deals

    Rosneft may back out of a deal to buy Morgan Stanley's oil trading unit because Western sanctions make it virtually impossible to finance day-to-day operations, three sources close to the state-controlled company said.

    The sources said the chances of the deal going through range from "possible" to "highly unlikely."

    Source: Reuters

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

  • TAQA to Spud Chiya Khere Appraisal in Kurdistan
    Exploration

    ShaMaran Petroleum announced that TAQA is preparing to spud the Chiya Khere-6 (CK-6) Phase 2 appraisal well in the Atrush Block, Kurdistan. CK-6 will be drilled to a total depth of 2,164m targeting the Jurassic reservoir and is estimated to take up to 70 days.

    The current plan is for the rig to conduct the re-test of AT-3 following the testing of CK-6.

    Atrush Block ownership: TAQA (39.9%, operator), KRG (25%), ShaMaran (20.1%) and Marathon Oil (15%).

    View ShaMaran press release

    View ShaMaran's operations webpage

  • Data analysis Bravo Acquires Arkoma Basin Assets for $250 Million

    Bravo Natural Resources has entered into an agreement with Canaan Natural Gas PE Funds to acquire producing and gathering assets in Oklahoma’s Arkoma Basin for $250 million.The assets comprise 950 operated and non-operated wells producing primarily from the Hartshorne Coal and Woodford formations, net...

    Bravo Acquires Arkoma Basin Assets for $250 MillionData analysis
    Headlines, Global Deals

    Bravo Natural Resources has entered into an agreement with Canaan Natural Gas PE Funds to acquire producing and gathering assets in Oklahoma’s Arkoma Basin for $250 million.

    The assets comprise 950 operated and non-operated wells producing primarily from the Hartshorne Coal and Woodford formations, net 1P reserves of 286 Bcfe and net production of approximately 33 MMcfe/d. The assets also include 56,000 net acres prospective for horizontal, liquids rich Woodford development.

    View Bravo press release

  • Ensco Prices $1.25 Billion Offering of Senior Notes

    Ensco has priced an underwritten offering of $1.25 billion principal amount of senior unsecured notes. The notes consists of $625 million principal amount of 4.5% senior unsecured notes due 2024 priced at 99.864% of par and $625 million principal amount of 5.75% senior unsecured notes due 2044 priced at...

    Ensco Prices $1.25 Billion Offering of Senior Notes
    Headlines

    Ensco has priced an underwritten offering of $1.25 billion principal amount of senior unsecured notes. The notes consists of $625 million principal amount of 4.5% senior unsecured notes due 2024 priced at 99.864% of par and $625 million principal amount of 5.75% senior unsecured notes due 2044 priced at 99.560% of par.

    Citigroup Global Markets, Deutsche Bank Securities, DNB Markets, Goldman, Sachs & Co, HSBC Securities, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities are acting as joint book-running managers in connection with the offering.

    View Ensco press release

  • Data analysis Petrobras, ONGC Find Gas in Brazil Offshore Extension Well

    Petrobras has made a discovery in an extension well being used to evaluate the Poco Verde prospect in the BM-SEAL-4 Block off Brazil. The well was drilled in 2,196m of water 58 km off the coast of Aracaju, the capital of Brazil's Sergipe state.The discovery is in an area believed to hold more than 1 Bbbl...

    Petrobras, ONGC Find Gas in Brazil Offshore Extension WellData analysis
    Headlines, Exploration

    Petrobras has made a discovery in an extension well being used to evaluate the Poco Verde prospect in the BM-SEAL-4 Block off Brazil. The well was drilled in 2,196m of water 58 km off the coast of Aracaju, the capital of Brazil's Sergipe state.

    The discovery is in an area believed to hold more than 1 Bbbl of recoverable oil, enough to make the area the biggest discovery in Brazil since the 2007 announcement of giant offshore resources south of Rio de Janeiro.

    Petrobras plans to begin producing oil from the Sergipe offshore area in 2018 with a 100 Mbbl/d floating production ship. A second ship with the same capacity is expected in 2020. Development of the area is likely to require more than two ships.

    Ownership of BM-SEAL-4 Block: Petrobras (75%, operator) and ONGC (25%).

    Source: Reuters

  • Magnum Cheers Utica Well Gas Flows

    Magnum Hunter Resources has flowed gas from its first Utica well (Stewart Winland 1300U) drilled and completed in the Tyler County, West Virginia. The well flowed at a peak rate of 46.5 MMcf/d of natural gas, and has been flowing to sales through the company's Eureka Hunter Pipeline system. It was drilled...

    Magnum Cheers Utica Well Gas Flows
    Exploration

    Magnum Hunter Resources has flowed gas from its first Utica well (Stewart Winland 1300U) drilled and completed in the Tyler County, West Virginia. The well flowed at a peak rate of 46.5 MMcf/d of natural gas, and has been flowing to sales through the company's Eureka Hunter Pipeline system. It was drilled and cased to a depth of 10,825 ft with a 5,289 ft horizontal lateral, and successfully fracked with 22 stages.

    Additionally, three new Marcellus wells (Stewart Winland 1301M, Stewart Winland 1302M and Stewart Winland 1303M) have all been fracture stimulated and are ready for sales. Magnum is awaiting an air permit from the State of West Virginia to begin flowing these Marcellus wells to sales.

    View Magnum press release

  • Hess Files for IPO of Bakken Midstream Arm

    Hess’ spin-off Hess Midstream Partners has filed a registration statement with US Securities Exchange and Commission for an IPO. The offering is expected to occur in Q1-2015.Hess Midstream Partners intends to list its common units on the New York Stock Exchange under the symbol “HESM.” The...

    Hess Files for IPO of Bakken Midstream Arm
    Headlines

    Hess’ spin-off Hess Midstream Partners has filed a registration statement with US Securities Exchange and Commission for an IPO. The offering is expected to occur in Q1-2015.

    Hess Midstream Partners intends to list its common units on the New York Stock Exchange under the symbol “HESM.” The number of common units to be offered and the price range for the offering have not yet been determined.

    Headquartered in Houston, Hess Midstream Partners’ initial assets will be contributed by Hess and are expected to include a 30% interest in Hess’ natural gas processing plant located in Tioga, North Dakota; a 50% interest in Hess’ rail loading terminal located in Tioga, along with the associated rail cars; a 50% interest in Hess’ crude oil truck and pipeline terminal located in Williams County, North Dakota; and a 100% interest in Hess’ propane storage cavern and rail and truck transloading facility located in Mentor, Minnesota.

    View Hess press release

  • Atlas Expands Eagle Ford Footprint in $225 Million Deal

    Atlas Resource Partners (ARP) has entered into an agreement to acquire oil assets in the Eagle Ford for $225 million. The assets consist of 22 producing wells and 19 undeveloped locations containing estimated net reserves of approximately 12 MMBOE (86% oil, 100% operated, 74% net revenue interest). ARP will...

    Atlas Expands Eagle Ford Footprint in $225 Million Deal
    Headlines, Global Deals

    Atlas Resource Partners (ARP) has entered into an agreement to acquire oil assets in the Eagle Ford for $225 million. The assets consist of 22 producing wells and 19 undeveloped locations containing estimated net reserves of approximately 12 MMBOE (86% oil, 100% operated, 74% net revenue interest). ARP will pay $200 million of the purchase price upon closing, with the remainder of the purchase price paid in installments in 2015.

    In connection with the acquisition, Atlas Energy LP's E&P development subsidiary will purchase eight wells that have been drilled but not completed and 53 undeveloped drilling locations for approximately $115 million, which is to be paid in the twelve months following closing.

    View ARP press release