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NEWS

  • DryShips Sells Suezmax Tanker Fleet for $245 Million

    DryShips has entered into an agreement to sell four Suezmax tankers - Vilamoura, Lipari, Petalidi and Bordeira - for a sales price of $245 million. The company sold the tankers to entities controlled by its Chairman and CEO George Economou. Under the firm sales agreements the entities will pay upfront 20% to...

    DryShips Sells Suezmax Tanker Fleet for $245 Million
    Global Deals

    DryShips has entered into an agreement to sell four Suezmax tankers - Vilamoura, Lipari, Petalidi and Bordeira - for a sales price of $245 million. The company sold the tankers to entities controlled by its Chairman and CEO George Economou. Under the firm sales agreements the entities will pay upfront 20% to DryShips and the balance purchase price will be due on delivery, which will be between 1-Jul-2015 and 31-Oct-2015.

    In a parallel agreement, DryShips entered into agreements with the same entities to potentially sell its six Aframax tankers - Belmar, Calida, Alicante, Mareta, Saga and Daytona. Under the terms of the agreements, the purchasers could potentially acquire these tankers for a sales price of $291 million, as long as they confirm their unconditional acceptance by 30-Jun-2015.
     
    DryShips stated that other than the sale price, all material terms and conditions of this potential transaction are the same as the conditions of the firm sales agreement for the Suezmax tankers.

    View DryShips press release

  • Maersk Brings Tyra Platform Online in Danish North Sea

    Maersk Oil has commenced oil production from the new Tyra Southeast-B unmanned platform in the Danish North Sea. The platform is located 220 km off Denmark’s west coast. The platform will deliver approximately 20 MMbbl and 170 Bcf, with a peak production of 20 MBOE/d in 2017.View Maersk Oil press...

    Maersk Brings Tyra Platform Online in Danish North Sea
    Projects & Capex

    Maersk Oil has commenced oil production from the new Tyra Southeast-B unmanned platform in the Danish North Sea. The platform is located 220 km off Denmark’s west coast. The platform will deliver approximately 20 MMbbl and 170 Bcf, with a peak production of 20 MBOE/d in 2017.

    View Maersk Oil press release

  • DNO Halts Production in Yemen

    DNO ASA has announced suspension of production in Yemen due to the continuing deteriorating security conditions. The combined production from Block 32 and Block 43 averaged 1.9 Mbbl/d on a gross basis, and 950 bbl/d on a company working interest basis.DNO stated that it continues to monitor the situation...

    DNO Halts Production in Yemen
    Projects & Capex

    DNO ASA has announced suspension of production in Yemen due to the continuing deteriorating security conditions. The combined production from Block 32 and Block 43 averaged 1.9 Mbbl/d on a gross basis, and 950 bbl/d on a company working interest basis.

    DNO stated that it continues to monitor the situation closely and has initiated plans to improve its security facilities.

    View DNO ASA press release

  • Wood Group Wins Total EPCC Contract for UKCS Assets

    Total has awarded a multi-million dollar EPCC contract to Wood Group for assets in the UK Continental Shelf (UKCS). Wood Group will deliver engineering, procurement, construction and commissioning services to four offshore assets and two onshore facilities in the UKCS.Dave Stewart, CEO of Wood Group PSN said:...

    Wood Group Wins Total EPCC Contract for UKCS Assets
    Others

    Total has awarded a multi-million dollar EPCC contract to Wood Group for assets in the UK Continental Shelf (UKCS). Wood Group will deliver engineering, procurement, construction and commissioning services to four offshore assets and two onshore facilities in the UKCS.

    Dave Stewart, CEO of Wood Group PSN said: "Our knowledge and in-depth understanding of this key client's needs, and our strong commitment to working safely, collaboratively, innovatively and efficiently to maximize productivity of these assets, helped us to secure this contract. We look forward to continuing our long-standing partnership with Total in the UK continental shelf."

    View Wood Group press release

  • Eni Signs PSCs for Two Offshore Myanmar Blocks

    A JV between Eni and PetroVietnam has signed PSCs for the MD-02 and MD-04 Blocks offshore Myanmar. The PSCs consist of a study period of two years, followed by an exploration period of six years which is subdivided in three phases.The MD-02 block is located in the southern part of the Bay of Bengal, in the...

    Eni Signs PSCs for Two Offshore Myanmar Blocks
    Others

    A JV between Eni and PetroVietnam has signed PSCs for the MD-02 and MD-04 Blocks offshore Myanmar. The PSCs consist of a study period of two years, followed by an exploration period of six years which is subdivided in three phases.

    The MD-02 block is located in the southern part of the Bay of Bengal, in the Rakhine Basin, approximately 135 km from the coast, west of the Yadana field. The Block covers an area of 10,330 sq km in water depths ranging from 500m to 2,400m.

    The MD-04 block is located in the Moattama-South Andaman Basin, approximately 230 km from the coast, west of the Yetagun gas field. The block covers an area of 5,900 sq km in water depths ranging from 1,500m to 2,200m.

    Ownership of MD-02 and MD-04 Blocks: Eni (80%, operator) and PetroVietnam (20%).

    View Eni press release

  • VAALCO Disappointed by Block 5 Well Off AngolaData analysis
    Exploration

    VAALCO Energy reported that the post-salt Kindele-1 well, located on Block 5 offshore Angola, was water-bearing. The well was drilled to a total vertical depth of approximately 1,829m. The well will be plugged, and abandoned.

    Steve Guidry, Chairman and CEO of VAALCO, said, "We are disappointed with the outcome of this first well drilled offshore Angola. The well targeted a three-way fault closure where the fault appears to have not provided the required lateral seal. The Mucanzo target sands were present and of a very high quality. We did find non-commercial hydrocarbon shows higher in the Pinda Group, in the overlying Catambela formation, indicating we were in a proven hydrocarbon system. Overall, we remain optimistic about the additional prospects and leads, both pre- and post-salt, on the block."

    View VAALCO press release

    View VAALCO Dec-2014 presentation

    Ownership of Block 5: VAALCO Energy (40%, operator) and Sonangol (60%).

  • Data analysis Resolute To Sell Non-Core Assets in Midland Basin

    Resolute Energy has signed an agreement to sell its non-core assets in the Midland Basin to a private party for approximately $42 million. The assets consist of operated and non-operated properties located in Howard County, Texas.The proceeds of the sale will be used to reduce debt, initially by reducing...

    Resolute To Sell Non-Core Assets in Midland BasinData analysis
    Global Deals

    Resolute Energy has signed an agreement to sell its non-core assets in the Midland Basin to a private party for approximately $42 million. The assets consist of operated and non-operated properties located in Howard County, Texas.

    The proceeds of the sale will be used to reduce debt, initially by reducing amounts outstanding under the company’s revolving credit facility.

    The transaction is expected to close on or about 1-May-2015.

    View Resolute Energy press release

  • McDermott Wins Chevron Contract for Two GoM Fields
    Others

    Chevron has awarded McDermott International a contract for the expansion of the Jack and St. Malo fields in the US Gulf of Mexico. The Jack and St. Malo fields are located in the Walker Ridge area of the US GoM, approximately 280 miles south of New Orleans, Louisiana.

    The contract is for transporting and installing subsea umbilicals, manifolds, jumpers and flying leads in the field. McDermott’s North Ocean 102 will transport and install 30 miles of umbilicals and associated flying leads. The final jumper assembly is scheduled to be completed at the company's Gulfport Spoolbase in Mississippi.

    The installation campaign will commence in Q2-2016.

    View McDermott press release

    View Chevron 2014 Annual Report

  • ExxonMobil Brings Online Hadrian South Gas Field
    Headlines, Projects & Capex

    ExxonMobil commenced production at the Hadrian South gas field in deep-water US Gulf of Mexico. Production from the field is expected to reach about 52 MBOE/d, comprising 300 MMcf/d of gas and 2.2 Mbbl/d of liquids.

    Hadrian South is located approximately 240 miles south of Louisiana in approximately 7,650 ft of water. The field is served by the Lucius platform, which also serves the Greater Hadrian area. The Lucius platform has a capacity of 80 Mbbl/d and 450 MMcf/d of gas, of which 300 MMcf/d is dedicated to Hadrian South.

    Ownership of Hadrian South: ExxonMobil (46.7%, operator), Eni (30%) and Petrobras (23.3%).

    View Eni press release

    View ExxonMobil 2014 ops review

  • Harkand Bags Maersk DSV Services Contract

    Harkand has secured a multi-million pound contract from Maersk Oil for the provision of DSV services in the North Sea. Services will be provided by two DSVs - the Harkand Da Vinci and the Harkand Atlantis.The 12-month contract covers well tie-ins, structure installation, piling, flexible flowline lay,...

    Harkand Bags Maersk DSV Services Contract
    Others

    Harkand has secured a multi-million pound contract from Maersk Oil for the provision of DSV services in the North Sea. Services will be provided by two DSVs - the Harkand Da Vinci and the Harkand Atlantis.

    The 12-month contract covers well tie-ins, structure installation, piling, flexible flowline lay, flexible riser installation, pre-commissioning, riser recovery, decommissioning and general inspection, repair and maintenance work.

    View Harkand press release

  • KrisEnergy Hits Pay at Rossukon-2ST in Gulf of ThailandData analysis
    Exploration

    KrisEnergy discovered hydrocarbons the Rossukon-2ST well, located in G6/48 Block in the Gulf of Thailand.

    Rossukon-2ST was drilled by the drillship Key Gibraltar to a total depth of 7,270 ft measured depth. The preliminary well logs indicated that the well intersected approximately 40 ft true vertical depth (TVD) of net oil-bearing sandstones and 100 ft TVD of net gas-bearing sandstones, over several reservoir intervals.

    Ownership of G6/48 Block: KrisEnergy (30%, operator), Northern Gulf Petroleum (40%) and Mubadala (30%).

    View KrisEnergy press release

    View KrisEnergy Thailand operations webpage

  • Beach Energy Spuds Perlubie-3 in Cooper BasinData analysis
    Exploration

    Beach Energy spudded the Perlubie-3 well in PPL247 on the western flank of the Cooper Basin. The primary target of the well is the Namur Sandstone, and is planned to drill to a total depth of approximately 1,415m to appraise and develop the northern area of the Perlubie oil field.  The well will take 9 days to drill and case.

    Ownership of PPL247: Beach Energy (75%, operator) and Cooper Energy (25%).

    View Cooper Energy press release

  • Sun Petrochemicals, Loyz Energy Form Upstream JV

    Loyz Energy has entered into two MOUs with Sun Petrochemicals to jointly bid for upstream projects. Loyz Energy signed the MOUs with Sun Oil & Natural Gas (SONG), a subsidiary of Sun Petrochemicals. Based on the first MOU, in certain cases SONG will bear the costs and expenditure of Loyz’s...

    Sun Petrochemicals, Loyz Energy Form Upstream JV
    Global Deals

    Loyz Energy has entered into two MOUs with Sun Petrochemicals to jointly bid for upstream projects. Loyz Energy signed the MOUs with Sun Oil & Natural Gas (SONG), a subsidiary of Sun Petrochemicals. Based on the first MOU, in certain cases SONG will bear the costs and expenditure of Loyz’s participating interest in projects secured.

    As part of the second MOU, Loyz will transfer and assign its Indian assets, which comprised the PSCs in Modhera and Baola fields, to SONG. In turn, SONG will commit $1 million to utilize on the assets to complete the work program, lifting production and monetizing the reserves at the two fields. After the completion of certain requirements, Loyz will receive 7.5% of the monthly net profit of the assets, as well as 50% in cost recovery.

    Loyz Energy will complete the transfer and assignment of the assets to Sun Petrochemicals within two months from the date of the second MOU.

    View Loyz Energy press release

  • Statoil Discovers More Gas in Block 2 Off TanzaniaData analysis
    Exploration, Headlines

    Statoil announced the discovery of an additional 1-1.8 Tcf of natural gas in Mdalasini-1 well on Block 2, offshore Tanzania. The Mdalasini-1 discovery is located at a water depth of 2,296m at the southernmost edge of the block. The new gas discovery has been made in Tertiary and Cretaceous sandstones.

    Statoil operates the Mdalasini-1 well with a 100% working interest.

    Ownership of Block 2: Statoil (65%, operator) and ExxonMobil (35%).

    View Statoil press release

  • Rampart Acquires 80% in North-West Shelf PermitData analysis
    Global Deals

    Rampart Energy has signed an agreement with Neon Energy and Black Swan Resources to acquire 80% working interest as operator of the exploration permit WA-503-P, within Dampier sub-basin, off Western Australia.

    The exploration permit comprised a three-year primary term that included the commitment to acquire 80 sq km of the Broadband 3D seismic data in the first year which will expire in May-2015, and also complete various geological and geophysical studies. The primary exploration focus in WA-503-P is the Lower Cretaceous to Upper Jurassic sandstone reservoirs within Legendre Trend.

    Post-transaction ownership of WA-503-P: Rampart Energy (80%, operator) and Black Swan (20%).

    View Rampart Energy press release

  • New Zealand Launches Block Offer 2015 Tender
    Others

    New Zealand has opened the Block Offer 2015 tender for petroleum exploration permits. The tender covered a total area of 429,298 sq km, which included three onshore areas and four offshore areas.

    The onshore areas in the tender comprised: onshore Taranaki (1,039 sq km), onshore West Coast (2,007 sq km) and onshore West Coast (1,046 sq km). The offshore areas being tendered are: offshore Northland-Reinga (186,181 sq km), offshore Taranaki (53,253 sq km), offshore Pegasus/East Coast (44,015 sq km) and offshore Great-South Canterbury (141,757 sq km).

    Bids for Block Offer 2015 must include a work program that demonstrates a technical understanding of the tender area. Operators must have both the technical and financial capability to deliver their proposed work program. The invitation for Bids for Block Offer 2014 closes on 30-Sept-2015. The permits will be granted in Dec-2015.

    View New Zealand Petroleum & Minerals press release

  • EIG Global to Invest $1 Billion in Breitburn

    Breitburn Energy Partners LP revealed a $1 billion strategic investment in the company by EIG Global Energy Partners. The investment consists of $350 million in perpetual preferred equity and $650 million of senior secured notes. The offering is expected to close on 8-Apr-2015.Breitburn expects to use the net...

    EIG Global to Invest $1 Billion in Breitburn
    Headlines, Global Deals, Others

    Breitburn Energy Partners LP revealed a $1 billion strategic investment in the company by EIG Global Energy Partners. The investment consists of $350 million in perpetual preferred equity and $650 million of senior secured notes. The offering is expected to close on 8-Apr-2015.

    Breitburn expects to use the net proceeds from the private offerings of approximately $938 million to repay borrowings under its credit facility, resulting in net borrowings, at closing, of approximately $1.2 billion.

    View Breitburn press release

  • Highlights of the Week Ended 28-Mar-2015

    Global DealsIn the biggest deal of the week, Chevron seeks to sell its 50% stake in Caltex Australia worth $3.6 billion.In a separate transaction, Shell completed the sale of its $1.7 billion stake in Oil Mining Lease (OML) 29 and the Nembe Creek Trunk Line (NCTL) in the Eastern Niger...

    Highlights of the Week Ended 28-Mar-2015
    Headlines, Global Deals, Projects & Capex, Exploration

    Global Deals

    In the biggest deal of the week, Chevron seeks to sell its 50% stake in Caltex Australia worth $3.6 billion.

    In a separate transaction, Shell completed the sale of its $1.7 billion stake in Oil Mining Lease (OML) 29 and the Nembe Creek Trunk Line (NCTL) in the Eastern Niger Delta to Aiteo Group.

    In Mexico, Pemex has signed an agreement to grant a joint stake worth $900 million to BlackRock and First Reserve in the second phase of Mexico pipeline project in Los Ramones.

    While Energy Transfer Partners LP (ETP) and Sunoco LP announced the second dropdown of a portion of ETP’s retail business to Sunoco for $816 million, the consortium of Enagas and Fluxys has jointly acquired Swedegas from EQT Infrastructure.

    In the midstream segment, Devon has sold the Victoria Express Pipeline and related truck terminal and storage assets to EnLink Midstream Partners LP for $210-$220 million. Delek US will also acquire a 33% interest in the planned Rangeland Integrated Oil pipeline and supporting terminals in the Delaware Basin. Meanwhile in Asia, the Thailand Energy giant, PTT, looks to sell a 25% stake in the Egyptian gas pipeline company East Mediterranean Gas (EMG).

    Exploration

    Statoil has spudded the 6706/12-3 well on the Roald Rygg Prospect in PL602, Norwegian Sea. Statoil also received an approval from the Norwegian Petroleum Directorate to drill a wildcat near Gina Krog field in PL029B, North Sea.

    While Petrobras hits more pay in its second well (C1) in Brazil’s Libra field, Murphy was highly disappointed after drilling three dusters: Urca well in GoM, and the Koel and Cisticola exploration wells in WA. Europa Oil and Gas was also disappointed at its failure to discover significant oil and gas reserves in the Kiln Lane-1 exploration well on PEDL181 in UK.

    In Asia, KrisEnergy discovered hydrocarbons in its Rossukon-2 exploration well on G6/48 Block in the Gulf of Thailand. JX Nippon Oil & Gas has also discovered oil at the Bestari-1 exploration well in the deep-water Block R off Malaysia.

    Projects and Capex

    The trend of capex cut prevails with Chesapeake Energy’s further cut of $500 million in its planned 2015 capex to $3.5-4 billion.

     

  • Statoil Receives Nod for Gina Krog WildcatData analysis
    Exploration

    The Norwegian Petroleum Directorate (NPD) has granted a drilling permit to Statoil for 15/6-13 wildcat near the Gina Krog field in PL029B, North Sea. The well will be drilled by Songa Trym drilling facility.

    Ownership of PL029B: Statoil (50%, operator), Total (30%) and Det Norske (20%).

    View NPD press release

  • Data analysis Chevron to Sell $3.6 Billion Stake in Caltex Australia

    Chevron is seeking to sell its entire stake (50%) in Caltex Australia for A$4.6 billion (US$3.6 billion). Chevron has offered 135 million shares in Caltex at a floor price of A$34.20 each.The spokesman of Chevron said: "There will be no change to our ability to reliably and competitively deliver all...

    Chevron to Sell $3.6 Billion Stake in Caltex AustraliaData analysis
    Global Deals

    Chevron is seeking to sell its entire stake (50%) in Caltex Australia for A$4.6 billion (US$3.6 billion). Chevron has offered 135 million shares in Caltex at a floor price of A$34.20 each.

    The spokesman of Chevron said: "There will be no change to our ability to reliably and competitively deliver all our customers' fuel requirements."

    Source: Reuters

    View Chevron press release

  • Petrobras Names Luciano Coutinho Chairman

    Petrobras has named Luciano Coutinho as the new chairman. Mr. Coutinho will replace Guido Mantega, the former Brazilian finance minister.Mr. Coutinho has been a board member of Petrobras since 2008. He has led the Brazilian Development Bank (BNDES) for nearly eight years, overseeing a huge rise in its...

    Petrobras Names Luciano Coutinho Chairman
    Others

    Petrobras has named Luciano Coutinho as the new chairman. Mr. Coutinho will replace Guido Mantega, the former Brazilian finance minister.

    Mr. Coutinho has been a board member of Petrobras since 2008. He has led the Brazilian Development Bank (BNDES) for nearly eight years, overseeing a huge rise in its influence and loan book.

    Source: Reuters

  • Freeport LNG Awards $2 Billion EPC Contract

    Freeport LNG has awarded an EPC contract to the JV between CB&I, Chiyoda and Zachry Industrial for the third train of the three-train natural gas liquefaction and export facility on Quintana Island, near Freeport, Texas.The scope of work under the contract included a double-walled, full-containment...

    Freeport LNG Awards $2 Billion EPC Contract
    Headlines

    Freeport LNG has awarded an EPC contract to the JV between CB&I, Chiyoda and Zachry Industrial for the third train of the three-train natural gas liquefaction and export facility on Quintana Island, near Freeport, Texas.

    The scope of work under the contract included a double-walled, full-containment 165,000 (gross) cubic meter LNG storage tank to be supplied by CB&I. Upon completion, the three-train LNG liquefaction facility will have a total capacity in excess of 13.9 MMTPA of LNG.

    View CB&I press release

  • Pemex in $900 Million Los Ramones Pipeline DealData analysis
    Global Deals, Headlines

    Pemex announced that BlackRock and First Reserve have acquired a $900 million joint stake in the second phase of Mexico pipeline project in Los Ramones.

    Pemex will spend $2.5 billion on the second phase of the Los Ramones pipeline, which will run from the US-Mexico border to central Mexico for satisfying the growing demand for gas by boosting cheap imports from the US. Pemex revealed that the joint stake was equivalent to 45% of the costs involved in the construction of the project.

    Source: Reuters

    View Pemex's Los Ramones Phase II presentation

  • Cue Gets Nod for Mahato PSC Farm-in, Indonesia
    Global Deals

    Cue Energy received the approval from the government for the farm-in agreement with Bukit Energy to acquire a 12.5% participating interest in the Mahato PSC onshore Central Sumatra, Indonesia.

    The 5,600 sq km-Mahato PSC is located in Central Sumatra basin close to the Minas oil field and the Duri oil field. The block contains multiple appraisal and exploration drilling opportunities with two wells currently planned for H2-2015.

    The 2015 work plan includes an appraisal well delineating the possible extension of the Petapahan field into Mahato PSC, a subsequent 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 Energy press release

  • PTT to Sell Stake in Egypt-Israel Gas Pipeline

    PTT, the Thailand energy giant, is looking to sell a 25% stake in the Egyptian gas pipeline company East Mediterranean Gas (EMG), according to its CFO Wirat Uanarumit. Mr. Uanarumit said: "We are looking at an option to sell the stake. Some (investors) have approached us, but there is no progress so...

    PTT to Sell Stake in Egypt-Israel Gas Pipeline
    Global Deals

    PTT, the Thailand energy giant, is looking to sell a 25% stake in the Egyptian gas pipeline company East Mediterranean Gas (EMG), according to its CFO Wirat Uanarumit. Mr. Uanarumit said: "We are looking at an option to sell the stake. Some (investors) have approached us, but there is no progress so far.”

    EMG is a company registered in Egypt that owns and operates a cross-border gas pipeline that receives Egyptian gas from an exporting terminal at Al-Arish in Egypt and transports it to a receiving terminal at Ashqelon in Israel.

    Source: Reuters

  • Sterling Sells Romanian Assets to Carlyle Group

    Sterling Resources has signed an agreement to sell its entire Romanian assets to Carlyle Group, for a cash consideration of $42.5 million. The assets include license blocks 13 Pelican, 15 Midia, 25 Luceafarul and 27 Muridava.The sale is expected to complete around the end of the Q2-2015.View Sterling...

    Sterling Sells Romanian Assets to Carlyle Group
    Global Deals

    Sterling Resources has signed an agreement to sell its entire Romanian assets to Carlyle Group, for a cash consideration of $42.5 million. The assets include license blocks 13 Pelican, 15 Midia, 25 Luceafarul and 27 Muridava.

    The sale is expected to complete around the end of the Q2-2015.

    View Sterling Resources press release

  • Data analysis Shell Completes $1.7 Billion OML 29 Sale

    Shell has completed the sale of its stake in Oil Mining Lease (OML) 29 and the Nembe Creek Trunk Line (NCTL) in the Eastern Niger Delta to Aiteo Group for $1.7 billion. Shell has signed sales agreements for all of these assets, including 30% stakes in OMLs 18, 24, 25, 29 and the NCTL.Total and Eni has also...

    Shell Completes $1.7 Billion OML 29 SaleData analysis
    Global Deals

    Shell has completed the sale of its stake in Oil Mining Lease (OML) 29 and the Nembe Creek Trunk Line (NCTL) in the Eastern Niger Delta to Aiteo Group for $1.7 billion. Shell has signed sales agreements for all of these assets, including 30% stakes in OMLs 18, 24, 25, 29 and the NCTL.

    Total and Eni has also agreed to sell their minority stakes in OML 29 and NCTL, giving Aiteo a 45% stake.

    Source: Reuters

  • PetroVietnam Considers Venezuela JV Exit
    Global Deals

    Reuter reports that PetroVietnam (PVN) is considering to sell its 40% stake in a JV with Petroleos de Venezuela (PDVSA), quoting two unnamed sources. A senior source in PDVSA has also said the Vietnamese company was now considering a definitive pullout. A source close to the Petromacareo project confirmed the pull-out, adding that a Colombian company was interested in buying PVN's stake.

    Source: Reuters

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

  • Consol Prices $500 Million Senior Notes Offering

    Consol Energy has announced the pricing of its senior notes in a public offering worth $500 million. The company has priced its 8.000% senior notes due 2023 at 98.552% of their face value.Net proceeds of the offering, together with borrowings under its revolving credit facility to the extent necessary, will...

    Consol Prices $500 Million Senior Notes Offering
    Others

    Consol Energy has announced the pricing of its senior notes in a public offering worth $500 million. The company has priced its 8.000% senior notes due 2023 at 98.552% of their face value.

    Net proceeds of the offering, together with borrowings under its revolving credit facility to the extent necessary, will be utilized to purchase all of the approximately $1 billion in its outstanding 8.25% senior notes due 2020 and the $250 million in its outstanding 6.375% senior notes due 2021 pursuant to the tender offers and consent solicitations that commenced on 9-Mar-2015

    The offering is expected to close on 30-Mar-2015.

    View Consol press release

  • JX Nippon Discovers Oil at Bestari-1 Off MalaysiaData analysis
    Exploration

    JX Nippon Oil & Gas has discovered oil at the Bestari-1 exploration well in the deep-water Block R off Malaysia.

    Bestari-1 well encountered 67m of net oil pay in multiple sand packages within the primary Miocene age formation at true vertical subsea depths ranging from 1,860m to 2,702m. The oil bearing sands are of high quality with good porosity and permeability. Oil samples from wireline pressure and sampling tools confirmed 27°-30°API oil with no indication of H2S and negligible CO2.

    The well is being evaluated with a view to planning an appraisal campaign.

    Ownership of Block R: JX Nippon (27.5%, operator), Inpex (27.5%), Petronas (25%) and Santos (20%).

    View Santos press release

    View JX Nippon Malaysia map

  • Data analysis Petrobras Hits More Pay in Libra Field

    Petrobras has discovered hydrocarbons at its second (C1) well located in Brazil's Libra field.The well confirmed a column of hydrocarbons of approximately 200m in the central block of the field, about 220 km off the coast of Rio de Janeiro.Ownership of Libra field: Petrobras (40%, operator), Shell (20%),...

    Petrobras Hits More Pay in Libra FieldData analysis
    Exploration

    Petrobras has discovered hydrocarbons at its second (C1) well located in Brazil's Libra field.

    The well confirmed a column of hydrocarbons of approximately 200m in the central block of the field, about 220 km off the coast of Rio de Janeiro.

    Ownership of Libra field: Petrobras (40%, operator), Shell (20%), Total (20%), CNOOC (10%) and CNPC (10%).

    Source: Reuters

  • UGL Wins $120 Million Santos GLNG Contract

    UGL has secured a three-year contract from Santos GLNG worth $120 million approximately, to provide plant services for the operational phase of its Curtis Island LNG facility. The contract can be extended for another four years.Under the scope of the contract, UGL will perform maintenance, shutdown,...

    UGL Wins $120 Million Santos GLNG Contract
    Others

    UGL has secured a three-year contract from Santos GLNG worth $120 million approximately, to provide plant services for the operational phase of its Curtis Island LNG facility. The contract can be extended for another four years.

    Under the scope of the contract, UGL will perform maintenance, shutdown, engineering and project services for Santos GLNG’s LNG facility. UGL is expected to commence mobilization of its workforce in the Q2-2015.

    View UGL press release

  • Lundin Spuds Second Alta Appraisal in the Barents SeaData analysis
    Exploration

    Lundin Petroleum has commenced drilling of the Alta appraisal well (7220/11-2) in PL609, Barents Sea. The Alta discovery is located 10 to 20 km northeast of Lundin Petroleum's Gohta discovery in the Barents Sea South and approximately 160 km from the Norwegian coastline. The appraisal well  is located 6.5 km southwest of the Alta discovery well 7220/11-1.

    The primary objective of the well is to confirm the reservoir model and prove the presence of hydrocarbon columns and fluid contacts similar to those established in the Alta discovery well.

    The well will be drilled using Island Innovator to a planned total depth of 2,020m below mean sea level. Drilling is expected to take approximately 60 days.

    Ownership of PL609: Lundin (40%, operator), RWE (30%) and Idemitsu (30%).

    View Lundin press release

  • Origin Spuds Irwin-1 in Perth Basin, Western AustraliaData analysis
    Exploration

    AWE announced that Origin Energy has spudded the Irwin-1 exploration well located in Perth Basin's EP320 in Western Australia.

    The well will be drilled vertically to a planned total depth of 4,064m and is expected to be completed in approximately seven weeks.

    The well will test the gas potential to the east of the Senecio and Waitsia gas fields. It will target the Dongara and Wagina tight sandstone formations, the Carynginia Shale and Irwin River Coal Measures, as well as deeper conventional targets in the Kingia and High Cliff Sandstones.

    Ownership of EP320: Origin Energy (67%, operator) and AWE (33%).

    View AWE press release

  • Data analysis Chevron Inks PSC in Rakhine Basin Off Myanmar

    Chevron has signed a PSC with Myanma Oil & Gas Enterprise to explore for oil and gas at Block A5 in the Rakhine Basin, Off Myanmar. The block lies 200 km offshore northwest of Yangon, and covers more than 2.6 million acres (10,600 sq km). Ownership of Block A5: Chevron (99%, operator) and Royal...

    Chevron Inks PSC in Rakhine Basin Off MyanmarData analysis
    Others

    Chevron has signed a PSC with Myanma Oil & Gas Enterprise to explore for oil and gas at Block A5 in the Rakhine Basin, Off Myanmar. The block lies 200 km offshore northwest of Yangon, and covers more than 2.6 million acres (10,600 sq km). 

    Ownership of Block A5: Chevron (99%, operator) and Royal Marine Engineering (1%).

    View Chevron press release

  • Devon Sells Victoria Express Pipeline to EnLink Midstream

    Devon Corporation has sold the Victoria Express Pipeline (VEX) and related truck terminal and storage assets to EnLink Midstream Partners LP for $210-$220 million.The consideration comprises approximately $171 million cash, approximately 338,000 of Partnership’s common units and EnLink’s...

    Devon Sells Victoria Express Pipeline to EnLink Midstream
    Headlines, Global Deals

    Devon Corporation has sold the Victoria Express Pipeline (VEX) and related truck terminal and storage assets to EnLink Midstream Partners LP for $210-$220 million.

    The consideration comprises approximately $171 million cash, approximately 338,000 of Partnership’s common units and EnLink’s assumption of $30-40 million in certain construction costs to expand the system to full capacity.

    The VEX assets include a 56-mile multi-grade crude oil pipeline, as well as the pipeline’s destination facilities at the Port of Victoria, including an eight-bay truck unloading terminal, 200 Mbbl of above ground storage, of which 50 Mbbl are under construction, and rights to barge loading docks. Also included in the transaction are facilities near the origin of the pipeline that are currently under construction, including an eight-bay truck unloading terminal and 160 Mbbl of above-ground storage. The above-ground facilities are expected to be operational in H2-2015.

    The VEX pipeline became operational in Q3-2014. The pipeline currently transports condensate from DeWitt County to the Port of Victoria on the mid-coast of Texas.

    View EnLink Midstream press release

  • Linn, Quantum Energy Partners Form JV for Acquisitions

    Linn Energy announced a partnership with PE firm Quantum Energy Partners to jointly acquire oil and gas assets. Quantum has agreed to initially commit up to $1 billion of equity capital to fund acquisitions and development of assets. LINN will have the ability to participate in all acquisition opportunities...

    Linn, Quantum Energy Partners Form JV for Acquisitions
    Headlines, Global Deals

    Linn Energy announced a partnership with PE firm Quantum Energy Partners to jointly acquire oil and gas assets. Quantum has agreed to initially commit up to $1 billion of equity capital to fund acquisitions and development of assets. LINN will have the ability to participate in all acquisition opportunities with a direct working interest ranging from 15-50%.

    The $1 billion equity commitment, combined with the ability to leverage, and Linn's acquisition of a direct working interest, results in the potential to exceed $2.5 billion of acquisition and development funding from the alliance.

    View Linn Energy press release

     

  • KrisEnergy Makes Hydrocarbon Discovery in Gulf of ThailandData analysis
    Exploration

    KrisEnergy discovered oil and gas in Rossukon-2 exploration well in G6/48 Block in the Gulf of Thailand. The Rossukon-2 well is located at a water depth of 210 ft and was drilled to a total depth of 5,460 ft measured depth (-4,924 ft true vertical depth subsea).

    Preliminary well logs had indicated that the well intersected approximately 69 ft true vertical depth (TVD) of net oil-bearing sandstones and 37 ft TVD of net gas-bearing sandstones, over five reservoir intervals.

    The Rossukon-2 well will be plugged after the completion of the logging program by 25-Mar-2015.

    Ownership of G6/48 Block: KrisEnergy (30%, operator), Northern Gulf Petroleum (40%) and Mubadala (30%).

    View KrisEnergy press release

    View KrisEnergy Thailand operations webpage

  • ETP in $816 Million Distribution Business Dropdown to Sunoco

    Energy Transfer Partners LP (ETP) and Sunoco LP announced the second dropdown of a portion of ETP’s retail business to Sunoco for $816 million. Sunoco will pay $775 million in cash and issue $40.8 million of common units to an ETP affiliate, ETP Retail Holdings, for a 31.58% equity interest in the motor...

    ETP in $816 Million Distribution Business Dropdown to Sunoco
    Global Deals, Others

    Energy Transfer Partners LP (ETP) and Sunoco LP announced the second dropdown of a portion of ETP’s retail business to Sunoco for $816 million. Sunoco will pay $775 million in cash and issue $40.8 million of common units to an ETP affiliate, ETP Retail Holdings, for a 31.58% equity interest in the motor fuel distributor Sunoco LLC.

    Sunoco LLC distributes approximately 5.3 billion gallons annually to customers in the east, mid-west and south-east regions of the US.

    Robert W. Owens, President and CEO of Sunoco LP, said: “This transaction gives us new exposure to customers in 26 states from Maine to Florida to Louisiana, where the Sunoco fuel brand is very strong, complementing our current base of wholesale customers in the Southwest and Hawaii… We will also enhance our sales channel portfolio with additional jobbers -- who supply fuel to independent retailers -- in our mix of customers."

    View Sunoco press release

  • Sunoco to Raise $800 Million in Senior Notes Offering

    Sunoco LP announced a private offering of senior notes due 2023 worth $800 million, with Sunoco Finance as the co-issuer.Net proceeds from the offering will be used to fund the cash consideration for the acquisition of a 31.58% membership interest in Sunoco LLC and repay outstanding borrowings under its...

    Sunoco to Raise $800 Million in Senior Notes Offering
    Others

    Sunoco LP announced a private offering of senior notes due 2023 worth $800 million, with Sunoco Finance as the co-issuer.

    Net proceeds from the offering will be used to fund the cash consideration for the acquisition of a 31.58% membership interest in Sunoco LLC and repay outstanding borrowings under its senior secured revolving credit facility.

    View Sunoco LP press release

  • Statoil Names Anders Opedal COO

    Statoil named Anders Opedal as COO, effective 1-Apr-2015. Mr. Opedal will be responsible for the corporate improvement programs and for driving operational efficiency across Statoil’s business areas.Mr. Opedal holds an MBA from Heriot-Watt University and an engineering degree from NTH. He has served as...

    Statoil Names Anders Opedal COO
    Others

    Statoil named Anders Opedal as COO, effective 1-Apr-2015. Mr. Opedal will be responsible for the corporate improvement programs and for driving operational efficiency across Statoil’s business areas.

    Mr. Opedal holds an MBA from Heriot-Watt University and an engineering degree from NTH. He has served as senior vice president of projects in Statoil’s Technology, Projects and Drilling business area, where he has been responsible for Statoil’s approximately NOK 300 billion (US$37.6 Billion) project portfolio since 2010. He has also held a range of positions in drilling and well, procurement and projects. Mr. Opedal had joined Statoil in 1997 as a petroleum engineer in the Statfjord operations.

    View Statoil press release

  • Data analysis Enagas, Fluxys Acquire Swedegas

    Swedegas announced that a consortium comprising of Enagas and Fluxys has jointly acquired the company from EQT Infrastructure.Swedegas owns the gas transmission grid which extends from Dragör in Denmark to Stenungsund in Sweden. The gas grid supplies gas to 33 municipal areas and several companies,...

    Enagas, Fluxys Acquire SwedegasData analysis
    Global Deals

    Swedegas announced that a consortium comprising of Enagas and Fluxys has jointly acquired the company from EQT Infrastructure.

    Swedegas owns the gas transmission grid which extends from Dragör in Denmark to Stenungsund in Sweden. The gas grid supplies gas to 33 municipal areas and several companies, combined heat and power plants and vehicle fuelling stations.

    Marcelino Oreja, CEO of Enagas, said: "The Swedish gas market has major development potential. Investing in LNG infrastructure and in regional gas grids to facilitate the transition by the industrial, shipping and transport sectors from oil to gas, are areas in which we have identified significant scope for development.”

    View Swedegas press release

  • Apache Charters Rig for Levitt-1 Well Off WAData analysis
    Others

    Karoon Gas revealed that Apache has chartered the Ocean America rig from Diamond Offshore for the Levitt-1 well in the exploration permit WA-482-P, in the northern Carnarvon Basin.

    The Levitt-1 well will be drilled in May-2015. Apache will carry 90% of the cost of the well up to a total well cost of $70 million. The net to Karoon dry hole cost is estimated to be approximately $5 million.

    View Karoon Gas press release

    Ownership of WA-482-P: Apache (50%, operator) and Karoon Gas (50%).

    View Karoon Carnarvon Basin ops webpage

  • Data analysis Murphy Drills Two Dusters in Perth Basin

    Murphy Oil reported that the Koel and Cisticola exploration wells turned out to be dry on the WA-481-P Block in the Perth Basin, Western Australia. The two well have been plugged, and abandoned.The company is now drilling a third well at the Munia prospect in the Perth Basin. The drilling operations will be...

    Murphy Drills Two Dusters in Perth BasinData analysis
    Exploration

    Murphy Oil reported that the Koel and Cisticola exploration wells turned out to be dry on the WA-481-P Block in the Perth Basin, Western Australia. The two well have been plugged, and abandoned.

    The company is now drilling a third well at the Munia prospect in the Perth Basin. The drilling operations will be completed in Apr-2015.

    View Murphy press release

    Ownership of WA-481-P Block: Murphy (40%, operator), Kuwait Petroleum Corp (KPC) (30%) and Samsung (30%).

  • Oceaneering Bags Eni Contract for Cape Three Points

    A consortium of Oceaneering International and GE Oil & Gas has secured a contract from Eni and its partners to supply equipment for the Offshore Cape Three Points (OCTP) Block Project development, located off the coast of West Africa.Oceaneering will supply electro-hydraulic and steel tube umbilicals of...

    Oceaneering Bags Eni Contract for Cape Three Points
    Others

    A consortium of Oceaneering International and GE Oil & Gas has secured a contract from Eni and its partners to supply equipment for the Offshore Cape Three Points (OCTP) Block Project development, located off the coast of West Africa.

    Oceaneering will supply electro-hydraulic and steel tube umbilicals of approximately 51 km in length. The product manufacturing will be performed at Oceaneering’s umbilical facility in Panama City, Florida, and is expected to commence in the Q2-2015. Work will be completed in the Q4-2017.

    View Oceaneering press release

    Ownership of OCTP Block: Eni (47.22%, operator), Vitol (37.78%), and Ghana National Petroleum Corporation (15%).

  • Whiting to Raise Funds in Stock, Bond Offerings

    Whiting Petroleum Corporation announced that it will raise cash in separate stock and bond offerings. The company will offer 35 million shares of its common stock with an additional option of up to 5.25 million shares to be granted to the underwriters.In a separate offering Whiting will raise up to $1.85...

    Whiting to Raise Funds in Stock, Bond Offerings
    Headlines, Others

    Whiting Petroleum Corporation announced that it will raise cash in separate stock and bond offerings. The company will offer 35 million shares of its common stock with an additional option of up to 5.25 million shares to be granted to the underwriters.

    In a separate offering Whiting will raise up to $1.85 billion in debt. The company has commenced a sale of up to $1.15 billion in convertible senior notes due 2020 and a $750 million sale of senior notes due 2023.

    View Whiting press release

     

  • Data analysis Murphy Disappointed at Deep-Water Urca Well in GoM

    Murphy Oil announced that it failed to discover hydrocarbons in the Urca well on the Mississippi Canyon Block 697, deep-water GoM. The well has been plugged, and abandoned.View Murphy press releaseOwnership of Mississippi Canyon Block 697: Murphy (35%, operator), Petrobras (50%) and PetroVietnam (15%).

    Murphy Disappointed at Deep-Water Urca Well in GoMData analysis
    Exploration

    Murphy Oil announced that it failed to discover hydrocarbons in the Urca well on the Mississippi Canyon Block 697, deep-water GoM. The well has been plugged, and abandoned.

    View Murphy press release

    Ownership of Mississippi Canyon Block 697: Murphy (35%, operator), Petrobras (50%) and PetroVietnam (15%).

  • Chesapeake Cuts 2015 Capex by $500 Million

    Chesapeake Energy Corporation announced a further $500 million cut in planned 2015 capex to $3.5-4 billion. Production target for 2015 now stands at 635-645 MBOE/d (26% liquids), a growth of 1-3% YoY after adjusting for 2014 asset sales.The company plans to operate 25-30 rigs, a 55% reduction from the average...

    Chesapeake Cuts 2015 Capex by $500 Million
    Headlines, Projects & Capex

    Chesapeake Energy Corporation announced a further $500 million cut in planned 2015 capex to $3.5-4 billion. Production target for 2015 now stands at 635-645 MBOE/d (26% liquids), a growth of 1-3% YoY after adjusting for 2014 asset sales.

    The company plans to operate 25-30 rigs, a 55% reduction from the average of 64 rigs operated in 2014. The company intends to spud and connect to sales approximately 520 and 650 gross operated wells, respectively, in 2015 (a decrease from 1,175 and 1,150 wells in 2014).

    Doug Lawler, CEO, Chesapeake, said, “We entered 2015 with a strong liquidity position and we intend to manage it prudently. In response to continued weak commodity prices, we are further reducing capital expenditures and associated drilling activity. As a result, we now forecast ending 2015 with approximately $6 billion in combined cash and borrowing capacity under our credit facility. With this budget revision we anticipate being free cash flow neutral by the end of 2015.”

    View Chesapeake press release

  • PAA, Delek to Jointly Develop New Texas-La Pipeline

    Plains All American Pipeline has signed an agreement with Delek Logistics Partners for the development of the Caddo Pipeline which will connect Longview, Texas, and Shreveport, Louisiana.The Caddo Pipeline will originate at the Plains Atlas Terminal in Longview and will have the capacity to move up to 80...

    PAA, Delek to Jointly Develop New Texas-La Pipeline
    Others

    Plains All American Pipeline has signed an agreement with Delek Logistics Partners for the development of the Caddo Pipeline which will connect Longview, Texas, and Shreveport, Louisiana.

    The Caddo Pipeline will originate at the Plains Atlas Terminal in Longview and will have the capacity to move up to 80 Mbbl/d of domestic crude oil to supply refineries in the Shreveport area. It will also move oil to Delek Logistics’ pipeline system supplying the El Dorado, Arkansas refinery.

    Plains All American will construct and operate the Caddo Pipeline, expected to cost approximately $100 million. The pipeline is supported by long-term shipper commitments and is expected to be completed in mid-2016.

    View Plains All American press release

  • Europa Disappointed at Kiln Lane-1 Well in Lincolnshire

    Egdon Resources reported that Europa Oil and Gas failed to discover significant oil or gas reserves in the Kiln Lane-1 exploration well on PEDL181 in Northeast Lincolnshire, UK.The well was drilled to a total depth of 2,291m. Sandstones in the Westphalian and Namurian intervals were penetrated in line with...

    Europa Disappointed at Kiln Lane-1 Well in Lincolnshire
    Exploration

    Egdon Resources reported that Europa Oil and Gas failed to discover significant oil or gas reserves in the Kiln Lane-1 exploration well on PEDL181 in Northeast Lincolnshire, UK.

    The well was drilled to a total depth of 2,291m. Sandstones in the Westphalian and Namurian intervals were penetrated in line with the pre-drill geological model and significant oil and gas shows were observed during drilling operations. However, wireline logging and subsequent petrophysical analysis indicated that the sandstones encountered are water wet. 

    The well will be plugged and abandoned, and the site will be restored for agricultural use.

    Ownership of PEDL181: Europa (50%, operator), Egdon (25%) and Celtique Energie (25%).

    View Egdon press release