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NEWS

  • Data analysis Idemitsu Buys Stake in Showa Shell for $1.4 Billion

    Shell has signed an agreement with Idemitsu for the sale of 125,261,200 shares (33.24% stake) in Showa Shell Sekiyu KK for JPY169 billion (~US$1.4 billion). Post transaction, Shell will hold 1.8% stake in Showa Shell. Showa Shell Sekiyu KK has two business segments - Oil Business and Energy...

    Idemitsu Buys Stake in Showa Shell for $1.4 BillionData analysis
    Headlines, Global Deals

    Shell has signed an agreement with Idemitsu for the sale of 125,261,200 shares (33.24% stake) in Showa Shell Sekiyu KK for JPY169 billion (~US$1.4 billion). Post transaction, Shell will hold 1.8% stake in Showa Shell. 

    Showa Shell Sekiyu KK has two business segments - Oil Business and Energy Solutions Business. It refines crude oil imported from around the world at Group refineries in Japan (Yokkaichi, Keihin, and Yamaguchi refineries) and have crude oil processing capacity of 445,000 Bbl/d. It has about 3,300 service stations throughout Japan.

    John Abbott, Shell Downstream Director said “The sale is consistent with Shell’s strategy to concentrate its Downstream footprint on a smaller number of assets and markets where it can be most competitive.” 

    The transaction is expected to complete in 2016.

    View Shell press release

    View Idemitsu press release

    View Showa Shell Sekiyu ops webpage

  • Data analysis Murphy Makes Discovery at Permai in Block H, Off Malaysia

    Murphy Oil has announced a discovery at Permai well in Block H, offshore Malaysia. This is Murphy's eighth consecutive success in the area around the Rotan field floating LNG project, which has been sanctioned by both Murphy and Petronas with first production targeted in 2018. This discovery will...

    Murphy Makes Discovery at Permai in Block H, Off MalaysiaData analysis
    Exploration

    Murphy Oil has announced a discovery at Permai well in Block H, offshore Malaysia. This is Murphy's eighth consecutive success in the area around the Rotan field floating LNG project, which has been sanctioned by both Murphy and Petronas with first production targeted in 2018. This discovery will reduce complexity and development costs in the floating LNG project.

    View Murphy press release

    View Murphy Malaysia ops webpage

    Ownership of Permai well: Murphy (42%, operator), Petronas (40%) and Pertamina (18%).

  • Data analysis OGDCL Makes Discovery at Chak Naurang South-1, Pakistan

    Oil and Gas Development Company Ltd (OGDCL) has made an oil discovery in Chak Naurang South-1 exploration well located in District Chakwal, Punjab, Pakistan. The structure of well was delineated, drilled down to the depth of 3,220m targeting the Eocene reservoir of the sub thrust sheet to test potential of...

    OGDCL Makes Discovery at Chak Naurang South-1, PakistanData analysis
    Exploration

    Oil and Gas Development Company Ltd (OGDCL) has made an oil discovery in Chak Naurang South-1 exploration well located in District Chakwal, Punjab, Pakistan. The structure of well was delineated, drilled down to the depth of 3,220m targeting the Eocene reservoir of the sub thrust sheet to test potential of Lower Sakessar formation. Significant reserves of hydrocarbons have been found at Chak Naurang South-1. The well initially produced 180 Bbl/d with jet pump. 

    View Oil and Gas Development Company press release

  • Shell Q2-2015 Profit Slumps 33%

    Shell Q2-2015 profit on a current cost-of-supplies (CCS) basis fell 33% YoY to $3.4 billion. Earnings from upstream segment collapsed to $1,037 million, down 78% YoY, impacted by the significant decline in oil and gas prices and decreased production volumes. Compared with Q2-2014, CCS earnings excluding...

    Shell Q2-2015 Profit Slumps 33%
    Headlines, Results & Reports

    Shell Q2-2015 profit on a current cost-of-supplies (CCS) basis fell 33% YoY to $3.4 billion. Earnings from upstream segment collapsed to $1,037 million, down 78% YoY, impacted by the significant decline in oil and gas prices and decreased production volumes. Compared with Q2-2014, CCS earnings excluding identified items benefited from strong downstream results reflecting steps taken by the company to improve financial performance and higher realised refining margins. 

    Hydrocarbons production in Q2-2015 averaged 2.73 MMBOE/d, a decrease of 11% YoY. Cash flow from operating activities for Q2-2015 was $6.1 billion, compared with $8.6 billion for Q2-2014. Capex for Q2-2015 was $7.1 billion, of which $5.9 billion in upstream and $1.1 billion in downstream.

    Shell said it would reduce 2015 capital investment to $30 billion, down by 20% from a year ago as it expects the downturn in oil prices to last for several years. It added that its operating costs were expected to fall by $4 billion in 2015 and is anticipating some 6,500 staff and direct contractor reductions in 2015.

    Shell expects $30 billion of asset sales between 2016 and 2018, on top of a total of $20 billion in disposals for 2014 and 2015 combined.

    View Shell press release

  • Origin Commences Production from Yolla-6, Off Australia

    AWE reported that Yolla-6 development well has been successfully tied-in to export facilities on the Yolla platform and production from that well has commenced. The Yolla-6 well is located in Bass Strait, approximately 140 km off Kilcunda, Victoria.Origin Energy, the operator is monitoring well performance to...

    Origin Commences Production from Yolla-6, Off Australia
    Projects & Capex, Others

    AWE reported that Yolla-6 development well has been successfully tied-in to export facilities on the Yolla platform and production from that well has commenced. The Yolla-6 well is located in Bass Strait, approximately 140 km off Kilcunda, Victoria.

    Origin Energy, the operator is monitoring well performance to achieve optimal co-mingling with production from the existing Yolla-4 well. The early unstablised production rate from the BassGas facilities has now increased to approximately 57 TJ/d following the addition of the Yolla-6 well.

    The BassGas project consists of the Yolla offshore well head platform connected by pipeline to the gas processing facility at Lang Lang, Victoria. 

    BassGas JV ownership: Origin Energy (42.5%, operator), AWE (35%), Toyota Tsusho Gas E&P (11.25%) and Prize Petroleum (11.25%).

    View AWE press release

  • Petronas Spuds Midleton Well, Offshore IrelandData analysis
    Exploration

    Lansdowne Oil & Gas has announced that drilling of the Midleton prospect in SEL4/07, Celtic Sea, Offshore Ireland, has commenced. The well is being drilled by Ocean Guardian semi-submersible rig and is scheduled to take approximately 20 to 30 days.

    Ownership of SEL4/07: Kinsale Energy, wholly owned subsidiary of Petronas (80%, operator) and Lansdowne Oil & Gas (20%).

    View Lansdowne press release

  • Data analysis Swift Energy Explores Strategic Alternatives

    Swift Energy Company has retained Lazard Freres & Co to advise Swift Energy’s management and Board of Directors with respect to capital structure, financing alternatives and related strategic opportunities.Swift Energy, founded in 1979 and headquartered in Houston, engages in developing, exploring,...

    Swift Energy Explores Strategic AlternativesData analysis
    Global Deals

    Swift Energy Company has retained Lazard Freres & Co to advise Swift Energy’s management and Board of Directors with respect to capital structure, financing alternatives and related strategic opportunities.

    Swift Energy, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on oil and natural gas reserves onshore in Texas and Louisiana and in the inland waters of Louisiana.

    View Swift Energy press release

  • Data analysis Lonestar and IOG Sign Eagle Ford Joint Development Agreement

    Lonestar Resources has announced a $100 million Joint Development Agreement (JDA) with IOG Capital LP. The agreement provides incremental non-recourse capital for Lonestar to drill wells in its focus area of the Eagle Ford Shale play.Lonestar’s agreement with IOG Capital makes available a maximum of...

    Lonestar and IOG Sign Eagle Ford Joint Development AgreementData analysis
    Global Deals

    Lonestar Resources has announced a $100 million Joint Development Agreement (JDA) with IOG Capital LP. The agreement provides incremental non-recourse capital for Lonestar to drill wells in its focus area of the Eagle Ford Shale play.

    Lonestar’s agreement with IOG Capital makes available a maximum of $100 million in funds to be used in drilling incremental Eagle Ford Shale wells. The JDA, which calls for IOG to participate as a non-operated working interest owner, states that the funds can be deployed towards the drilling and completion of Eagle Ford Shale wells which meet the collective return criteria of Lonestar and IOG. The JDA calls for IOG to contribute up to 90% of the initial capital for wells drilled in the program, with Lonestar contributing the remainder of well costs. After IOG achieves a specified return, Lonestar’s working interest would increase to 90%.

    View Lonestar press release

  • Data analysis Total in $876 Million West of Shetland Assets Sale

    Total has signed an agreement to sell 20% of its interests in the Laggan, Tormore, Edradour and Glenlivet fields, located in the West of Shetland area, to SSE E&P UK Ltd for £565 million (around $876 million). The sale also includes 20% of Total’s interest in the Shetland Gas Plant and...

    Total in $876 Million West of Shetland Assets SaleData analysis
    Global Deals

    Total has signed an agreement to sell 20% of its interests in the Laggan, Tormore, Edradour and Glenlivet fields, located in the West of Shetland area, to SSE E&P UK Ltd for £565 million (around $876 million). The sale also includes 20% of Total’s interest in the Shetland Gas Plant and interests in several exploration licenses located in the West of Shetland area, including the Tobermory discovery.

    The Laggan and Tormore fields are located around 140 km west of the Shetland Islands on Blocks 206/1a, 205/4b and 205/5a, in 600m of water. Development of the fields was launched in 2010 and first gas is expected in the coming months.

    Development of the Edradour and Glenlivet fields was launched in 2014. The Edradour discovery is located 75 km northwest of Shetland on Block 206/4a, in 300m of water. The Glenlivet discovery is located north of Edradour on Block 214/30a, in 400m of water.

    View Total press release

     

  • Total Q2-2015 Profit Flat

    Total reported a 2% YoY fall in Q2-2015 net profit to $3.1 billion. Income from upstream segment fell 49% YoY to $1.56 billion, while Q2-2015 income of $1.349 billion from refining and chemicals segment was three times higher than in Q2-2014. Marketing and Services segment income grew 14% YoY to...

    Total Q2-2015 Profit Flat
    Results & Reports, Headlines

    Total reported a 2% YoY fall in Q2-2015 net profit to $3.1 billion. Income from upstream segment fell 49% YoY to $1.56 billion, while Q2-2015 income of $1.349 billion from refining and chemicals segment was three times higher than in Q2-2014. Marketing and Services segment income grew 14% YoY to $425 million.

    Hydrocarbon production was 2.299 MBOE/d in Q2-2015, an increase of 12% compared to Q2-2014. In H1-2015, hydrocarbon production was 2.347 MBOE/d, an increase of 11% compared to H1-2014.

    Divestments by Total in Q2-2015 included asset sales worth $733 million, comprised mainly of the sale of Totalgaz. The acquisitions included $282 million worth of assets in Q2-2015.

    View Total press release

  • Data analysis Anadarko Makes Discovery at Kronos-1, Off Colombia

    Ecopetrol has announced that the Kronos-1 well verified the presence of hydrocarbons at a depth of 3720m, in ultra-deepwater of Colombian south Caribbean area. The well is located in the Fuerte Sur block. After drilling at a water depth of 1584m, the well reached total depth of 3720m and encountered...

    Anadarko Makes Discovery at Kronos-1, Off ColombiaData analysis
    Exploration

    Ecopetrol has announced that the Kronos-1 well verified the presence of hydrocarbons at a depth of 3720m, in ultra-deepwater of Colombian south Caribbean area. The well is located in the Fuerte Sur block. 

    After drilling at a water depth of 1584m, the well reached total depth of 3720m and encountered a net pay thickness between 40 to 70m of gas bearing sandstones.

    Ownership of Fuerte Sur block: Anadarko (50%, operator) and Ecopetrol (50%).

    View Ecopetrol press release

    View Anadarko press release

  • Data analysis ConocoPhillips to Sell Assets in Alaska

    ConocoPhillips Alaska (COPA) is in the initial stages of marketing its North Cook Inlet Unit and interest in Beluga River Unit in Alaska. The North Cook Inlet and Beluga River units are mature fields that are no longer considered core to COPA's Alaska operations. The focus will be on the company’s...

    ConocoPhillips to Sell Assets in AlaskaData analysis
    Global Deals

    ConocoPhillips Alaska (COPA) is in the initial stages of marketing its North Cook Inlet Unit and interest in Beluga River Unit in Alaska. The North Cook Inlet and Beluga River units are mature fields that are no longer considered core to COPA's Alaska operations. The focus will be on the company’s current North Slope operations, including the Alaska LNG project.

    Development of a data room for the sale is in progress, and is expected to open in early Aug-2015.

    View ConocoPhillips Alaska press release

  • EPH and PPF Bid $1.2 Billion for UnipetrolData analysis
    Global Deals

    Reuters reported, quoting Czech newspaper Hospodarske Noviny, that Czech energy holding EPH and investment group PPF have submitted a joint bid of about 30 billion crowns (US$1.2 billion) for downstream oil company in Czech Republic, Unipetrol, which is 63% owned by Poland's PKN Orlen. 

    Citing unnamed sources, the newspaper said PKN Orlen would take until the end of the summer to consider the offer and was hiring an investment bank. The paper said a decision was unlikely before Polish parliamentary elections in October.

    Source: Reuters

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

  • Data analysis Vermilion Energy Announces Farm-in Agreement in Germany

    Vermilion Energy Inc has entered into a farm-in agreement with Mobil Erdgas-Erdol GmbH (MEEG) and BEB Erdgas und Erdol GmbH & Co.KG (BEB). MEEG is 100% held by ExxonMobil and BEB is jointly held by ExxonMobil and Shell. ExxonMobil Production Deutschland GmbH (EMPG) currently operates and manages both...

    Vermilion Energy Announces Farm-in Agreement in GermanyData analysis
    Global Deals

    Vermilion Energy Inc has entered into a farm-in agreement with Mobil Erdgas-Erdol GmbH (MEEG) and BEB Erdgas und Erdol GmbH & Co.KG (BEB). MEEG is 100% held by ExxonMobil and BEB is jointly held by ExxonMobil and Shell. ExxonMobil Production Deutschland GmbH (EMPG) currently operates and manages both MEEG's and BEB's interests in the exploration licenses involved in the farm-in.

    The farm-in will provide Vermilion participating interest in 19 onshore exploration licenses in northwest Germany, comprising approximately 850,000 net undeveloped acres of oil and gas rights (Assets). Under the terms of the agreement, Vermilion will acquire the Assets (which represent 50% of MEEG's and BEB's current interests in these licenses) in exchange for committing to the financial carry of the remaining 50% of MEEG's and BEB's interests in 11 gross (six net) exploratory wells over the next five years.

    Approximately 75 exploratory and semi-exploratory leads and prospects have been identified in the Rotliegend, Carboniferous, Triassic and Zechstein formations on these Assets.

    View Vermillion press release

  • BP Q2-2015 Profit Falls 64%

    BP reported a 64% YoY fall in Q2-2015 underlying replacement cost profit to $1.3 billion. The result reflected the impact of continued low oil and gas prices, a reduced contribution from Rosneft, and one-off charges arising from circumstances in Libya, but also continuing strong earnings from BP’s...

    BP Q2-2015 Profit Falls 64%
    Results & Reports, Headlines

    BP reported a 64% YoY fall in Q2-2015 underlying replacement cost profit to $1.3 billion. The result reflected the impact of continued low oil and gas prices, a reduced contribution from Rosneft, and one-off charges arising from circumstances in Libya, but also continuing strong earnings from BP’s downstream businesses and lower cash costs throughout the Group.

    With regard to 2010 Deepwater Horizon oil spill, a non-operating pre-tax charge of $9.8 billion was included in the result for Q2-2015. As a result of this charge, together with other non-operating items and fair value accounting effects, BP reported a replacement cost loss for the quarter of $6.3 billion.

    BP’s operating cash flow in Q2-2015 was $6.3 billion compared to $7.9 billion in Q2-2014. Organic capital expenditure in Q2-2015 was $4.5 billion, bringing the total for the first half of the year 2015 to $8.9 billion. BP has also now agreed $7.4 billion of divestments towards the current $10 billion divestment programme.

    BP’s upstream segment reported an underlying pre-tax replacement cost profit of $0.5 billion for Q2-2015, compared with $0.6 billion in Q1-2015 and $4.7 billion in Q2-2014. Compared with a year earlier, the result was mainly affected by lower oil and gas prices. The result also included around $600 million of exploration write-offs and other costs related to BP’s activities in Libya, primarily due to circumstances in the country.

    BP reported underlying pre-tax replacement cost profit for the downstream segment of $1.9 billion, compared with $2.2 billion in Q1-2015 and $0.7 billion in Q2-2014.

    View BP press release

  • Data analysis Pura Vida: Disappointing Preliminary Results for MZ-1

    Pura Vida Energy has announced that the MZ-1 exploration well in Mazagan permit, offshore Morocco, has reached a depth of 4,653m within the Lower Cretaceous and that wireline logs have been run to evaluate the entire open hole section of the well. Preliminary results from all of the data gathered to date...

    Pura Vida: Disappointing Preliminary Results for MZ-1Data analysis
    Exploration

    Pura Vida Energy has announced that the MZ-1 exploration well in Mazagan permit, offshore Morocco, has reached a depth of 4,653m within the Lower Cretaceous and that wireline logs have been run to evaluate the entire open hole section of the well. Preliminary results from all of the data gathered to date indicates that there is no effective reservoir in either of the secondary objectives in the Cenomanian and Aptian intervals and there were no oil shows encountered.

    Current operations include running casing, prior to drilling ahead to the firm Total Depth (TD) of 5,600m in the Jurassic, to test the primary objectives of the basin floor fans, Fan-1 and Fan-2. 

    Damon Neaves, Managing Director, commented: “We are disappointed that the well failed to encounter reservoir in the secondary objectives in the Cretaceous, however we expect to intersect the primary targets in the Jurassic and look forward to reporting those results shortly."

    View Pura Vida press release

    Ownership of Mazagan permit: Freeport-McMoRan Copper & Gold (52%, operator), Pura Vida Energy (23%) and ONHYM (Morocco) (25%)

    View Pura Vida Morocco ops webpage

  • Data analysis Goodrich in $118 Million Eagle Ford Assets Sale

    Goodrich Petroleum has signed an agreement to sell its proved reserves and associated leasehold in the Eagle Ford Shale in LaSalle and Frio Counties, Texas for $118 million. The asset being sold produced an average of approximately 2.85 MBOE/d (~75% oil) during Q1-2015.The effective date of the transaction is...

    Goodrich in $118 Million Eagle Ford Assets SaleData analysis
    Global Deals

    Goodrich Petroleum has signed an agreement to sell its proved reserves and associated leasehold in the Eagle Ford Shale in LaSalle and Frio Counties, Texas for $118 million. The asset being sold produced an average of approximately 2.85 MBOE/d (~75% oil) during Q1-2015.

    The effective date of the transaction is 1-Jul-2015 with an expected closing date on or before 4-Sep-2015. 

    Goodrich is retaining approximately 58% (~17,000 net acres) of its undeveloped leasehold in the play for future development or sale.

    From EP Energy’s announcement on 29-Jul-2015, 1Derrick understands that the EP Energy is the buyer of Goodrich's Eagle Ford assets.

    View Goodrich press release

    View EP Energy press release

  • Data analysis AWE Encounters Gas Shows at Waitsia-2, Perth Basin

    AWE Ltd has announced that the Waitsia-2 appraisal well reached Total Depth (TD) of 3,530m Measured Depth below Rotary Table (MDRT). The well is located on agricultural land approximately 16.5 km east-southeast of Dongara, Western Australia, and 5.6 km south southwest of Waitsia-1.All target...

    AWE Encounters Gas Shows at Waitsia-2, Perth BasinData analysis
    Exploration

    AWE Ltd has announced that the Waitsia-2 appraisal well reached Total Depth (TD) of 3,530m Measured Depth below Rotary Table (MDRT). The well is located on agricultural land approximately 16.5 km east-southeast of Dongara, Western Australia, and 5.6 km south southwest of Waitsia-1.

    All target formations were successfully intersected. Total depth was achieved 16m into the Nangetty Formation, which was intersected at 3,514m MDRT. Three sections of core were cut in the primary target, the Kingia and High Cliff Sandstones. Elevated gas shows were observed in the primary target Kingia and High Cliff Sandstones as well as the Carynginia Shale and Irwin River Coal Measures.

    The well is designed to test the gas potential in the southern extension of the Waitsia Field, comprising primary targets in the deep conventional formations in the Kingia and High Cliff Sandstones. If the results are positive, AWE may undertake a flow test of the Waitsia-2 well and the well may be completed as a production well for a potential future field development.

    View AWE press release

  • Yinka Folawiyo Spuds Aje 5 Production Well, Off Nigeria
    Projects & Capex

    MX Oil has announced that drilling of the Aje 5 production well has commenced. The Aje 5 well is located in the Aje field on the OML113 offshore Nigeria. Once Aje 5 has been drilled and completed, which is expected to take approximately 70 days, the rig will proceed to re-enter and complete the Aje 4 well. These two wells represent the first of a three phase development programme of Aje. Phase 1 is targeting first oil in Dec-2015 and peak gross production of 41 API oil from these two wells is expected to reach 11 Mbbl/d.

    Once drilling operations are completed, the wells will be tied back to a Floating Production Storage and Offloading vessel (FPSO), the Front Puffin. The company anticipates that production could commence from Phase 1 by the end of 2015.

    Yinka Folawiyo Petroleum is the operator of OML 113 with other partners including New Age, FHN, Energy Equity Resources and Jacka Resources. On 13-Jul-2015, MX Oil signed an agreement to acquire 5% revenue interest in OML 113 from Jacka Resources. 

    View MX Oil press release

    View Panoro Energy Nigeria ops webpage

  • Cooper Spuds Bunian-4 Appraisal Well, IndonesiaData analysis
    Exploration, Others

    Cooper Energy has spudded its Bunian-4 appraisal/development well in the KSO Tangai-Sukananti Block, South Sumatra, Indonesia.

    The primary target is the Talang Akar Formation TRM-3 Sand, which is expected to be intersected 450m east south-east of the same reservoir in Bunian-3. The target is 380m south south-east of the surface location and the well will be deviated at 25 degrees to reach its intended objective. The well is expected to add an oil production take point and pressure data obtained will assist in further appraising the size of the oil accumulation.

    The secondary objectives of the well are to appraise the extent of the oil pool discovered in the K1 Sand in Bunian-3 ST2 which flowed at 1.59 Mbbl/d on test and to assess the TRM-1 and TRM-2 Sands which it was not possible to evaluate in the earlier well.

    Bunian-4 is an onshore directional well with a prognosed total depth of 1,712m and is forecast to take approximately 26 days to complete, inclusive of production testing.

    Ownership of KSO Tangai-Sukananti JV: Cooper Energy (55%, operator) and Mega Adhyaksa Pratama (45%).

    View Cooper Energy press release

  • Highlights of the Week Ended 25-Jul-2015

    Global DealsArabella Exploration entered into an agreementwith a third party buyer and McCabe Petroleum to sell its ownership interest in certain of its properties, for cash and properties worth approximately $47 million.Eagle Energy Trust agreed to acquireall the issued and outstanding shares of a private...

    Highlights of the Week Ended 25-Jul-2015
    Global Deals, Projects & Capex, Exploration

    Global Deals

    Arabella Exploration entered into an agreement with a third party buyer and McCabe Petroleum to sell its ownership interest in certain of its properties, for cash and properties worth approximately $47 million.

    Eagle Energy Trust agreed to acquire all the issued and outstanding shares of a private company, which owns assets in Twining field in Alberta, for approximately C$30 million (US$23 million).

    Xplorer Plc signed an MoU with Teredo International for the acquisition of Teredo Morocco which holds a 36.75% WI in the Boujdour permit located offshore Morocco.

    San Leon Energy relinquished its Polish licenses to reduce the exploration component of its portfolio and focus on appraisal, development and production.

    Bureau of Ocean Energy Management (BOEM) will offer approximately 21.9 million acres offshore Texas for oil and gas exploration and development in Western Gulf of Mexico Lease Sale 246. 

    Statoil is looking to sell its 20% stake in the Trans Adriatic Gas Pipeline (TAP) project that will carry gas from Azerbaijan to Europe.

    Exploration

    Eni discovered gas in the Nidoco NW2 Dir NFW well in the Nooros exploration prospect, located in the Abu Madi West license in the Nile Delta, Egypt.

    While Edison came up dry at the Haribo exploration well in PL616, located 10 km south-west of the Valhall field in the Norwegian part of the North Sea, Statoil discovered gas and condensate in 2/4-23 S wildcat in the Julius prospect, North Sea.

    Vaalco Energy brought Southeast Etame 2-H well online at the rate of approximately 3.4 Mbbl/d offshore Gabon. Meanwhile, Bowleven discovered hydrocarbons in Zingana exploration well in Bomono Permit, Cameroon.

    PetroNeft kicked off production from T-503 horizontal well at Tungolskoye field in License 61 located in the Tomsk region of Western Siberia.

    Projects and Capex

    Total commenced production from Dalia Phase 1A, a new development on Block 17, located 135 km off the coast of Angola.

    Statoil started drilling the first production well at the Gina Krog, North Sea.

  • Statoil Spuds Production Well in Gina Krog, North Sea

    Statoil has commenced drilling the first production well at the Gina Krog, North Sea. The drilling started on 30-Jul-2015 using the Maersk Integrator rig.Gina Krog is located about 30 km north-west of Sleipner. The development of Gina Krog will be among Statoil's major new developments with an estimated...

    Statoil Spuds Production Well in Gina Krog, North Sea
    Projects & Capex

    Statoil has commenced drilling the first production well at the Gina Krog, North Sea. The drilling started on 30-Jul-2015 using the Maersk Integrator rig.

    Gina Krog is located about 30 km north-west of Sleipner. The development of Gina Krog will be among Statoil's major new developments with an estimated 225 million barrels of oil and gas.

    View Statoil press release

    View Statoil Gina Krog webpage

  • Bowleven Finds Hydrocarbons at Zingana Well, CameroonData analysis
    Exploration

    Bowleven has discovered hydrocarbons in Zingana exploration well in Bomono Permit, Cameroon.

    The well has been drilled to its planned total depth (TD) of 1,720m Measured Depth (MD) and logged. Hydrocarbons were encountered in the prognosed Paleocene (Tertiary) aged reservoir intervals and detailed log evaluation is being undertaken.

    View Bowleven press release

    Bowleven is the operator and holds 100% working interest in Bomono Permit.

    View Bowleven Bomono webpage

  • Data analysis Black Ridge, Merced Form JV to Buy Williston Basin Assets

    Black Ridge Oil & Gas has signed an agreement with Merced Capital to form an entity that will acquire and develop Williston Basin non-operated assets. The joint venture (JV) will be funded by Merced with an initial investment target of $50 million. Investments will be subject to Merced approval, and...

    Black Ridge, Merced Form JV to Buy Williston Basin AssetsData analysis
    Global Deals

    Black Ridge Oil & Gas has signed an agreement with Merced Capital to form an entity that will acquire and develop Williston Basin non-operated assets. The joint venture (JV) will be funded by Merced with an initial investment target of $50 million. Investments will be subject to Merced approval, and will be managed by Black Ridge.

    The JV assets will be managed by Black Ridge in exchange for a management fee and reimbursement of third party expenses, and after certain investor hurdles are met Black Ridge will receive a share of profits in the venture. Black Ridge will also have the option to co-invest up to 25% on acquisitions and capital expenditures alongside the venture and any such co-investments will reside directly within Black Ridge. Upon the sale of JV assets, Black Ridge will also have the option to bid and acquire the assets.

    Ken DeCubellis, Black Ridge's CEO, said: "The partnership with Merced provides Black Ridge the opportunity to participate in the acquisition and development of additional assets at attractive valuations, with the potential to create significant returns for Black Ridge's shareholders without dilution."

    View Black Ridge press release

  • Statoil Makes Discovery in Julius Prospect, North SeaData analysis
    Exploration

    Statoil has discovered gas and condensate in 2/4-23 S wildcat in the Julius prospect, North Sea. It is located in PL146 in the King Lear area, 20 km north of Ekofisk.

    The primary exploration target for the well was to prove petroleum in Upper Jurassic reservoir rocks (Ula formation) and Middle Jurassic reservoir rocks (Bryne formation), as well as to delineate the 2/4-21 discovery (King Lear), which was proven in Upper Jurassic reservoir rocks (Farsund formation) in 2012. The secondary exploration target for 2/4-23 S was to prove petroleum in Upper Triassic reservoir rocks (the Skagerrak formation).

    In the primary exploration target, the well encountered 41m of gas/condensate-filled sandstone rocks in the Ula formation, with moderate reservoir quality. The petroleum/water contact was not encountered. Preliminary estimates place the size of the discovery at between 2.5 and 12 MMcm of recoverable oil equivalents. The well also encountered 30m gross of water-filled sandstone with poor reservoir quality in the Bryne formation.

    The well encountered a 20m thick gas/condensate column in the Farsund formation, in two zones of five metre thick reservoir rocks with moderate/good reservoir quality, which confirmed pressure communication with the 2/4-21 King Lear discovery. The Skagerrak formation had poor reservoir quality and was water-filled.

    The well will now be permanently plugged and abandoned.

    View Statoil press release

    View NPD press release

    Ownership of PL146: Statoil (77.8%, operator) and Total (22.2%).

  • Data analysis Eagle Energy Trust Acquires Assets in Alberta

    Eagle Energy Trust has entered into an agreement with a private company (Privateco) to acquire all the issued and outstanding shares of Privateco for approximately C$30 million (US$23 million), including Privateco's indebtedness.Privateco has estimated production of approximately 750 BOE/d (64% liquids)...

    Eagle Energy Trust Acquires Assets in AlbertaData analysis
    Global Deals

    Eagle Energy Trust has entered into an agreement with a private company (Privateco) to acquire all the issued and outstanding shares of Privateco for approximately C$30 million (US$23 million), including Privateco's indebtedness.

    Privateco has estimated production of approximately 750 BOE/d (64% liquids) from the Twining field in Alberta. Privateco has been redeveloping the Twining field with horizontal wells in the Pekisko Pool. This pool is estimated to contain discovered oil initially-in-place of approximately 900 MMbbl, with a current recovery factor of less than 5%. Privateco has drilled 10 horizontal wells and has built a new battery to handle current and future development plans.

    Asset highlights:

    • 2.1 MMBOE of 1P reserves and 7.2 MMBOE of 2P reserves
    • Production of approximately 750 BOE/d from 92 gross (48 net) wells in the largest Pekisko oil pool in the Western Canadian Sedimentary Basin
    • 80% working interest in approximately 41,502 gross (32,650 net) acres 

    The transaction is expected to close by the end of Aug-2015.

    View Eagle Energy press release

  • Data analysis Arabella in $47 Million US Assets Sale

    Arabella Exploration has entered into a Purchase and Sale Agreement with a third party buyer and an agreement with McCabe Petroleum to sell its ownership interest in certain of its properties, for cash and properties with a potential value of approximately $47 million. As per the agreements, Arabella will...

    Arabella in $47 Million US Assets SaleData analysis
    Global Deals

    Arabella Exploration has entered into a Purchase and Sale Agreement with a third party buyer and an agreement with McCabe Petroleum to sell its ownership interest in certain of its properties, for cash and properties with a potential value of approximately $47 million. As per the agreements, Arabella will transfer its Locker State, Graham, Woods, Jackson and Emily Bell prospects to the buyer and will receive cash from the buyer and certain properties from McCabe Petroleum.

    As per the transactions, Arabella will receive the following:

    • $15 million in cash
    • Producing property in the Southern Delaware Basin with net production of approximately 88 BOE/d. Arabella estimates the value of this property to be approximately $6 million
    • A participation agreement covering 20,000 undeveloped acres (gross and net) in the Midland Basin, valued by Arabella at approximately $1,000/acre or $20 million total
    • An option to purchase approximately 1,000 net acres of royalty interests underlying the 20,000 acres in the Midland Basin valued by Arabella at approximately $3 million, net of the option cost
    • The return of 1,003,597 of Arabella's ordinary shares and the rights to certain earn-out shares valued at approximately $3 million; the 1,003,597 shares will be canceled upon receipt (provided that such shares may be reissued in the event that Arabella does not drill at least one well on its new property within one year from the closing date)

    The transaction is expected to close on or about 31-Jul-2015.

    View Arabella press release

  • Data analysis PetroNeft Brings T-503 Well Online in Western Siberia

    PetroNeft has commenced production from T-503 horizontal well at Tungolskoye field in License 61 located in the Tomsk region of Western Siberia. The well has been successfully completed with a horizontal segment of 1,000m in the Upper Jurassic J1-1 horizon at a True Vertical Depth (TVD) of approximately...

    PetroNeft Brings T-503 Well Online in Western SiberiaData analysis
    Exploration

    PetroNeft has commenced production from T-503 horizontal well at Tungolskoye field in License 61 located in the Tomsk region of Western Siberia. The well has been successfully completed with a horizontal segment of 1,000m in the Upper Jurassic J1-1 horizon at a True Vertical Depth (TVD) of approximately 2,502m . Of the 1,000m horizontal segment, it is estimated that approximately 663m is in effective net pay.

    The well was brought online on 14-Jul-2015 and the average flow rate has been recorded over 550 bbl/d.

    View PetroNeft press release

  • Data analysis Xplorer to Acquire Stakes in Five Permits Off Morocco

    Xplorer Plc has signed an MoU with Teredo International for the acquisition of Teredo Morocco which holds a 36.75% WI in the Boujdour permit (Boujdour) located offshore Morocco. As per the MoU, Teredo will be issued 56% of the post-transaction but pre-fundraising enlarged share capital of...

    Xplorer to Acquire Stakes in Five Permits Off MoroccoData analysis
    Global Deals

    Xplorer Plc has signed an MoU with Teredo International for the acquisition of Teredo Morocco which holds a 36.75% WI in the Boujdour permit (Boujdour) located offshore Morocco. As per the MoU, Teredo will be issued 56% of the post-transaction but pre-fundraising enlarged share capital of Xplorer. 

    Boujdour consists of five shallow offshore exploration permits. Boujdour is prospective for both oil and gas, and is estimated to have mean net un-risked prospective resources of 463.4 MMBOE.

    The transaction is conditional, inter alia, on Xplorer raising additional equity finance for which there is no certainty that the company will be able to conclude successfully. The proposed acquisition, if exchanged and completed, would constitute a reverse takeover under the Listing Rules. 

    View Xplorer press release

  • Total Kicks Off Production from Dalia Phase 1A Off Angola

    Total has commenced production from Dalia Phase 1A, a new development on Block 17, located 135 km off the coast of Angola.The Dalia Phase 1A project involves the drilling of seven infill wells tied back to the Dalia Floating Production Storage and Offloading (FPSO) unit. It will develop additional reserves of...

    Total Kicks Off Production from Dalia Phase 1A Off Angola
    Exploration, Projects & Capex

    Total has commenced production from Dalia Phase 1A, a new development on Block 17, located 135 km off the coast of Angola.

    The Dalia Phase 1A project involves the drilling of seven infill wells tied back to the Dalia Floating Production Storage and Offloading (FPSO) unit. It will develop additional reserves of 51 MMbbl and will contribute 30 Mbbl/d to the Block 17’s production.

    Arnaud Breuillac, President Exploration & Production, said: “The Dalia FPSO came on stream nearly nine years ago and with the addition of Phase 1A will still produce around 200 Mbbl/d. It is the latest milestone in the success story of Block 17, Total’s most prolific license with cumulative production reaching 2 Bbbl in May-2015. Dalia Phase 1A demonstrates Total’s commitment to maximizing value through the optimal use of existing facilities.”

    Ownership of Block 17: Total (40%, operator), Statoil (23.33%), Esso Exploration (20%) and BP (16.67%). 

    View Total press release

  • Data analysis San Leon Relinquishes Polish Licenses

    San Leon Energy has announced a reduction in its Polish licenses to reduce the exploration component of its portfolio and focus on appraisal, development and production, and thus securing near-term operational cash flow. The Polish licenses which are being removed from the current portfolio...

    San Leon Relinquishes Polish LicensesData analysis
    Global Deals

    San Leon Energy has announced a reduction in its Polish licenses to reduce the exploration component of its portfolio and focus on appraisal, development and production, and thus securing near-term operational cash flow. The Polish licenses which are being removed from the current portfolio include:

    • Czersk (relinquishment)
    • Budzow (relinquishment)
    • Ilawa (relinquishment)
    • Praszka (relinquishment)
    • Bieszczady area (Blocks 437, 438, 456, 457, 458 and the company's interest in partial Blocks 416, 417 and 436 - taken on by PKN ORLEN, who have assumed past and future benefits and liabilities)

    Oisin Fanning, San Leon Executive Chairman, said: "As part of the company's new strategy to focus on development and production, enabling San Leon to transform into a near-term cash-generating producer, the company has made the decision to remove some of its Polish acreage. The decision is also required as a result of the introduction of significant yearly license fees in Poland over the past couple of years. The company remains committed to its remaining acreage in Poland, which includes the Baltic Basin shale licenses and the recently announced gas discovery at the Rawicz field.”

    View San Leon press release

  • Data analysis Vaalco Brings Southeast Etame 2-H Well Online

    Vaalco Energy has brought Southeast Etame 2-H well online at the rate of approximately 3.4 Mbbl/d. The Southeast Etame 2-H well, located in the Southeast Etame field, is the first development well drilled and placed on production in the Southeast Etame/North Tchibala (SEENT) platform, located in approximately...

    Vaalco Brings Southeast Etame 2-H Well OnlineData analysis
    Exploration

    Vaalco Energy has brought Southeast Etame 2-H well online at the rate of approximately 3.4 Mbbl/d. The Southeast Etame 2-H well, located in the Southeast Etame field, is the first development well drilled and placed on production in the Southeast Etame/North Tchibala (SEENT) platform, located in approximately 260 ft of water offshore Gabon.

    The well was drilled to a measured depth of approximately 14,012 ft, targeting a new reservoir that was discovered by an exploration well drilled by Vaalco in 2010. It is producing from the Gamba formation which is the source of all other Vaalco production in the Etame Marin permit area, but the first production from this new, previously- unproduced field.

    Vaalco is the operator of the Etame Marin permit and owns 28.1% WI.

    View Vaalco press release

  • Data analysis Edison Comes Up Dry at Haribo, North Sea

    Edison has come up dry at the Haribo exploration well in PL616, located 10 km south-west of the Valhall field in the Norwegian part of the North Sea.The well was drilled by the semi-submersible drilling rig Transocean Searcher to total depth without encountering hydrocarbons. The well will now be plugged and...

    Edison Comes Up Dry at Haribo, North SeaData analysis
    Exploration

    Edison has come up dry at the Haribo exploration well in PL616, located 10 km south-west of the Valhall field in the Norwegian part of the North Sea.

    The well was drilled by the semi-submersible drilling rig Transocean Searcher to total depth without encountering hydrocarbons. The well will now be plugged and abandoned.

    Ownership of PL616: Edison Norge (25%, operator), Noreco (20%), Concedo (20%), Lime Petroleum (15%), North Energy (15%) and Skagen 44 (5%).

    View Noreco press release

  • Data analysis Statoil to Exit TAP Project

    Statoil is to sell its 20% stake in the Trans Adriatic Gas Pipeline (TAP) project that will carry gas from Azerbaijan to Europe.The TAP pipeline is a part of project that is designed to transport 16 Bcm of gas from Azerbaijan's Shah Deniz II field in the Caspian Sea, by the end of 2020. The 870 km...

    Statoil to Exit TAP ProjectData analysis
    Global Deals, Projects & Capex

    Statoil is to sell its 20% stake in the Trans Adriatic Gas Pipeline (TAP) project that will carry gas from Azerbaijan to Europe.

    The TAP pipeline is a part of project that is designed to transport 16 Bcm of gas from Azerbaijan's Shah Deniz II field in the Caspian Sea, by the end of 2020. The 870 km pipeline will connect with the Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before reaching southern Italy.

    Rovnag Abdullayev, president of Azeri state energy firm SOCAR, said: “Statoil has decided to leave the TAP project completely, and there is a company which is ready to buy its stake. Several companies have expressed an interest in buying Statoil's stake, and it would be better if several companies would buy it."

    Ownership of TAP: BP (20%), SOCAR (20%), Statoil (20%), Fluxys (19%), Enagas (16%) and Axpo (5%).

    Source: Reuters

  • Antonoil Wins $140 Million Contract in South Iraq

    Anton Oilfield Services Group has been awarded a $140 million contract for the provision of oilfield workover and completion services in South Iraq.The contract covers workover and completion services for more than 160 wells and acidizing service for over 60 wells. The four workover rigs required...

    Antonoil Wins $140 Million Contract in South Iraq
    Others

    Anton Oilfield Services Group has been awarded a $140 million contract for the provision of oilfield workover and completion services in South Iraq.

    The contract covers workover and completion services for more than 160 wells and acidizing service for over 60 wells. The four workover rigs required for the operation will be supplied by Anton. The project is expected to commence in H1-2016, with services offered spanning for a term of three years.

    View Anton Oilfield Services press release

  • Data analysis Eni Makes Gas Discovery in Nile Delta, Egypt

    Eni has discovered gas in the Nidoco NW2 Dir NFW well in the Nooros exploration prospect, located in the Abu Madi West license in the Nile Delta, Egypt.The well reached a total depth of 3,600m and encountered a 60m thick gas bearing sandstone interval of Messianian age with excellent petrophysical properties,...

    Eni Makes Gas Discovery in Nile Delta, EgyptData analysis
    Exploration

    Eni has discovered gas in the Nidoco NW2 Dir NFW well in the Nooros exploration prospect, located in the Abu Madi West license in the Nile Delta, Egypt.

    The well reached a total depth of 3,600m and encountered a 60m thick gas bearing sandstone interval of Messianian age with excellent petrophysical properties, further of other gas layers in the overlying Pliocene section. The new discovery will be put into production in two months’ time through a tie-in to the existing Abu Madi gas treatment plant, located 25 km south-east.

    Ownership of Abu Madi West license: Eni (75%) and BP (25%). Petrobel, equally owned by Ieoc Production (subsidiary of Eni) and EGPC is the operator of the license.

    View Eni press release

  • Data analysis Western GoM Lease Sale 246 to Offer 4083 Blocks

    Bureau of Ocean Energy Management (BOEM) will offer approximately 21.9 million acres offshore Texas for oil and gas exploration and development in Western Gulf of Mexico Lease Sale 246. The sale will include all available unleased areas in the Western GoM Planning Area.The sale will include approximately...

    Western GoM Lease Sale 246 to Offer 4083 BlocksData analysis
    Global Deals

    Bureau of Ocean Energy Management (BOEM) will offer approximately 21.9 million acres offshore Texas for oil and gas exploration and development in Western Gulf of Mexico Lease Sale 246. The sale will include all available unleased areas in the Western GoM Planning Area.

    The sale will include approximately 4,083 blocks, covering approximately 21.9 million acres, located from nine to 250 nautical miles offshore, in water depths ranging from 16 ft to more than 10,975 ft (5 to 3,340 m).

    View BOEM press release

  • Highlights of the Week Ended 18-Jul-2015

    Global dealsThis week was flooded with mega deals. In the biggest deal of the week MPLX LP signed a merger agreement to acquireMarkWest Energy Partners LP for approximately $20 billion.WPX Energy enteredthe Permian Basin through the acquisition of RKI Exploration & Production LLC for $2.35 billion, plus...

    Highlights of the Week Ended 18-Jul-2015
    Headlines, Global Deals, Exploration

    Global deals

    This week was flooded with mega deals. In the biggest deal of the week MPLX LP signed a merger agreement to acquire MarkWest Energy Partners LP for approximately $20 billion.

    WPX Energy entered the Permian Basin through the acquisition of RKI Exploration & Production LLC for $2.35 billion, plus the assumption of $400 million of debt.

    Black Hills agreed to buy SourceGas Holdings LLC from investment funds managed by Alinda Capital Partners and GE Energy Financial Services for approximately $1.89 billion.

    Energy Transfer Partners LP announced the dropdown of 100% of Susser Holdings to Sunoco LP for approximately $1.9 billion.

    Enterprise Products Partners LP entered into an agreement to sell its offshore GoM pipelines and services business for approximately $1.5 billion in cash.

    SBM Offshore signed an agreement with Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK) to divest 45% stake in the JV companies which owns and operates FPSO Turritella for approximately $590 million.

    Arc Logistics Partners LP purchased all of the limited liability company interests of UET Midstream LLC from United Energy Trading LLC and Hawkeye Midstream LLC in a cash-stock transaction worth approximately $76.7 million.

    Penn Virginia agreed to sell its East Texas assets to an undisclosed buyer for $75 million.

    Shell signed an agreement with Kinder Morgan to sell 100% of its equity interest in Elba Liquefaction Company LLC (ELC). Meanwhile, Tethys Petroleum declined the offer made by Nostrum Oil & Gas to acquire all its issued share capital at a price of C$0.2185 (US$0.17) per Tethys share, in cash or Nostrum shares or both.

    In United Kingdom, Egdon Resources farmed-out its interest in PEDL005(Remainder) (PEDL005(R)), Lincolnshire, to Terrain Energy and Union Jack Oil.

    Exploration

    In Australia, Buru Energy spudded the Praslin-1 exploration well in EP391R3 on Ungani trend, located in Canning Basin. In Beetaloo Basin, Origin Energy commenced drilling at the Kalala S-1 well in EP98, Northern Territory.

    In North Sea, Wintershall was disappointed at the failure of its Zeppelin (10/4-1) wildcat in PL734. The Norwegian Petroleum Directorate (NPD) granted a drilling permit to Lundin for 7220/6-2 wildcat well in PL609, Barents Sea.

    Condor kicked off drilling on its KN-501 Primary Basin well in Zharkamys West 1 Territory, Kazakhstan.

    Mexico's National Hydrocarbons Commission (CNH) awarded Blocks 2 and 7, out of 14 offered blocks, in Round 1 to the consortium consisting of Sierra Oil & Gas, Talos Energy and Premier Oil. 

  • Data analysis Buru Commences Drilling at Praslin-1 Well in Canning Basin

    Buru Energy has spudded the Praslin-1 exploration well in EP391R3 on Ungani trend, located in Canning Basin, Western Australia. The well is located 90 km east of Broome and 15 km west of Ungani oilfield.The well is being drilled with Atlas Rig 2 to a programmed total depth of 2,600m. The well is targeting...

    Buru Commences Drilling at Praslin-1 Well in Canning BasinData analysis
    Exploration

    Buru Energy has spudded the Praslin-1 exploration well in EP391R3 on Ungani trend, located in Canning Basin, Western Australia. The well is located 90 km east of Broome and 15 km west of Ungani oilfield.

    The well is being drilled with Atlas Rig 2 to a programmed total depth of 2,600m. The well is targeting conventional oil and gas in the Ungani Dolomite and Laurel clastic reservoirs, and potentially also in Devonian aged carbonates.

    Ownership of EP391R3: Buru (50%, operator) and Mitsubishi (50%).

    View Buru press release

  • Data analysis Condor Spuds KN-501 Primary Basin Well, Kazakhstan

    Condor has commenced drilling on its KN-501 Primary Basin well in Zharkamys West 1 Territory, Kazakhstan.The well is targeting 67 MMBOE unrisked mean prospective resources and is planned to reach a depth of 4,250m. The well has a conventional four-way closure across a 30 sq km area and an extensive salt top...

    Condor Spuds KN-501 Primary Basin Well, KazakhstanData analysis
    Exploration

    Condor has commenced drilling on its KN-501 Primary Basin well in Zharkamys West 1 Territory, Kazakhstan.

    The well is targeting 67 MMBOE unrisked mean prospective resources and is planned to reach a depth of 4,250m. The well has a conventional four-way closure across a 30 sq km area and an extensive salt top seal which ensures robust trap integrity.

    The estimated remaining cost to drill KN-501 is C$8 million (US$6.19 million).

    Ownership of Zharkamys West 1 Territory: Condor (100%, operator).

    View Condor press release

  • Data analysis Enterprise in $1.5 Billion Midstream Assets Sale

    Enterprise Products Partners LP has entered into an agreement with Genesis Energy LP to sell its offshore GoM pipelines and services business for approximately $1.5 billion in cash.The offshore assets include Enterprise’s ownership interest in nine crude oil pipeline systems with more than 1,100 miles...

    Enterprise in $1.5 Billion Midstream Assets SaleData analysis
    Global Deals

    Enterprise Products Partners LP has entered into an agreement with Genesis Energy LP to sell its offshore GoM pipelines and services business for approximately $1.5 billion in cash.

    The offshore assets include Enterprise’s ownership interest in nine crude oil pipeline systems with more than 1,100 miles of pipeline, nine natural gas pipeline systems totaling approximately 1,200 miles of pipeline and its ownership interest in six offshore hub platforms.

    The acquisition is expected to close in Q3-2015.

    View Enterprise press release

  • Data analysis Penn Virginia Sells East Texas Assets for $75 Million

    Penn Virginia has entered into an agreement to sell its East Texas assets to an undisclosed buyer for $75 million.The assets have a net production of approximately 1.87 MBOE/d (76% gas) during Q2-2015. Proved reserves associated with the divested properties at year-end 2014 are estimated to be 13.7 MMBOE (77%...

    Penn Virginia Sells East Texas Assets for $75 MillionData analysis
    Global Deals

    Penn Virginia has entered into an agreement to sell its East Texas assets to an undisclosed buyer for $75 million.

    The assets have a net production of approximately 1.87 MBOE/d (76% gas) during Q2-2015. Proved reserves associated with the divested properties at year-end 2014 are estimated to be 13.7 MMBOE (77% gas), 85% of which were proved developed.

    View Penn Virginia Corporation press release

  • Data analysis SBM Offshore Divests 45% Stake in FPSO Turritella

    SBM Offshore has entered into an agreement with Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK) to sell 45% stake in the JV companies which owns and operates FPSO Turritella for approximately $590 million. Following the transaction, Mitsubishi Corporation will hold 30% interest and NYK...

    SBM Offshore Divests 45% Stake in FPSO TurritellaData analysis
    Global Deals

    SBM Offshore has entered into an agreement with Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK) to sell 45% stake in the JV companies which owns and operates FPSO Turritella for approximately $590 million. Following the transaction, Mitsubishi Corporation will hold 30% interest and NYK will hold 15% interest in the JV companies.  

    FPSO Turritella is currently under construction in Singapore and is expected to be delivered and on-hire in H1-2016.

    View SBM press release

  • Mexico Awards Two Blocks in Phase 1
    Others

    Mexico's National Hydrocarbons Commission (CNH) has awarded Blocks 2 and 7, out of 14 offered blocks, in its initial offshore tender to the consortium consisting of Sierra Oil & Gas, Talos Energy and Premier Oil. Out of 12 unawarded blocks, eight received no offers, and other four had bids that were below the minimum requirement for profit-sharing with the government.

    The awarded blocks are located in the shallow water Sureste Basin, GoM. They contain Tertiary clastic plays, typical of the Salinas sub-basin. The consortium’s winning bid offered to pay the government 55.99% and 68.99% of pre-tax profits for Block 2 and Block 7 respectively. 

    Ownership of Blocks 2 and 7 JV: Talos Energy (45%, operator), Sierra Oil & Gas (45%) and Premier (10%).

    Source: Reuters

    View Premier press release

  • Data analysis Energy Transfer Partners in $1.9 Billion Susser Dropdown

    Energy Transfer Partners LP (ETP) has signed an agreement with Sunoco LP to dropdown 100% of Susser Holdings for approximately $1.9 billion. Sunoco will pay to ETP approximately $970 million in cash and issue approximately 22 million Sunoco units valued at approximately $970 million based on the five-day...

    Energy Transfer Partners in $1.9 Billion Susser DropdownData analysis
    Global Deals

    Energy Transfer Partners LP (ETP) has signed an agreement with Sunoco LP to dropdown 100% of Susser Holdings for approximately $1.9 billion. 

    Sunoco will pay to ETP approximately $970 million in cash and issue approximately 22 million Sunoco units valued at approximately $970 million based on the five-day volume-weighted average price of Sunoco's common units as of 14-Jul-2015.

    Susser's operations consist primarily of retail activity through the operation of convenience stores in Texas, New Mexico and Oklahoma, offering merchandise, food service, motor fuel and other services.

    The transaction is expected to close on 1-Aug-2015.

    View Sunoco press release

  • Data analysis Shell Sells 49% Stake in Elba LNG JV

    Shell has signed an agreement with Kinder Morgan to sell 100% of its equity interest in Elba Liquefaction Company LLC (ELC). Shell owns 49% of ELC JV.ELC is the owner of the Elba Liquefaction Project which is proposed to be constructed and operated at the existing Elba Island LNG Terminal near Savannah,...

    Shell Sells 49% Stake in Elba LNG JV Data analysis
    Global Deals

    Shell has signed an agreement with Kinder Morgan to sell 100% of its equity interest in Elba Liquefaction Company LLC (ELC). Shell owns 49% of ELC JV.

    ELC is the owner of the Elba Liquefaction Project which is proposed to be constructed and operated at the existing Elba Island LNG Terminal near Savannah, Georgia. Under full development, the Elba Liquefaction Project is expected to have a total capacity of approximately 2.5 MMT/y of LNG for export, which is equivalent to approximately 350 MMcf/d of natural gas.

    Kimberly S. Watson, Kinder Morgan East Region Natural Gas Pipelines President, said: "We are very pleased to purchase Shell's equity interest in the JV and advance the project with Shell's continued support and subscription to 100% of the capacity of our world-class Elba Island terminal."

    Post-transaction ownership of ELC JV: Kinder Morgan (100%).

    View Shell press release

  • Wintershall Comes Up Dry at 10/4-1 Wildcat in North SeaData analysis
    Exploration

    The Norwegian Petroleum Directorate (NPD) reported that Wintershall has come up dry at Zeppelin (10/4-1) wildcat in PL734, located 35 km south-east of the Yme field in the North Sea.

    The primary exploration target for the well was to prove petroleum in Upper Jurassic reservoir rocks (Sandnes formation) and in Middle Jurassic reservoir rocks (Bryne formation). The secondary exploration target was to prove petroleum in Upper Permian reservoir rocks.

    The well was drilled by the Borgland Dolphin drilling facility to a vertical depth of 2348m below the sea surface and was terminated in rocks from the Late Permian age. Water depth at the site is 98m. The well encountered approximately 90m of reservoir rocks in the Sandnes and Bryne formations with good reservoir quality. No reservoir was encountered in Permian rocks.

    The well will be permanently plugged and abandoned.

    View NPD press release

    Ownership of PL734: Wintershall (40%, operator), Lundin (30%) and Centrica Resources (30%).

    View Lundin press release

    View NPD press release

  • Sembcorp Inks $1 Billion Engineering & Construction Contract

    Sembcorp Marine has entered into an Engineering and Construction contract worth approximately $1 billion with Heerema Offshore Services BV to build a new DP3 semi-submersible crane vessel (NSCV).NSCV, with vessel length of 220m, width of 102m and displacement of 273.7 MMT, is designed for the installation and...

    Sembcorp Inks $1 Billion Engineering & Construction Contract
    Others

    Sembcorp Marine has entered into an Engineering and Construction contract worth approximately $1 billion with Heerema Offshore Services BV to build a new DP3 semi-submersible crane vessel (NSCV).

    NSCV, with vessel length of 220m, width of 102m and displacement of 273.7 MMT, is designed for the installation and decommissioning of major offshore facilities. NSCV will be equipped with two Huisman heavy-lifting offshore cranes of 10 MMT lifting capacity each and a large reinforced work deck area.

    NSCV is scheduled for delivery in Q4-2018.

    Sembcorp press release

  • Origin Spuds Kalala S-1 Well in EP98, Beetaloo BasinData analysis
    Exploration

    Origin Energy has spudded the Kalala S-1 well in EP98, Northern Territory, Australia. The exploration permit is located 500 km south-east of Darwin.

    The well is planned to be drilled to a total depth of approximately 2,800m. It will target the Middle Velkerri formation to assess hydrocarbon saturation and reservoir quality.

    Ownership of Beetaloo JV: Origin (35%, operator), Sasol Petroleum (35%) and Falcon Oil and Gas (30%).

    View Origin press release

    View Falcon Beetaloo webpage

  • Data analysis Arc Logistics Acquires $77 Million Midstream Assets

    Arc Logistics Partners LP has acquired all of the limited liability company interests of UET Midstream LLC from United Energy Trading LLC and Hawkeye Midstream LLC for approximately $76.7 million consisting $44.3 million in cash and approximately $32.3 million in common units.UET Midstream's principal...

    Arc Logistics Acquires $77 Million Midstream AssetsData analysis
    Global Deals

    Arc Logistics Partners LP has acquired all of the limited liability company interests of UET Midstream LLC from United Energy Trading LLC and Hawkeye Midstream LLC for approximately $76.7 million consisting $44.3 million in cash and approximately $32.3 million in common units.

    UET Midstream's principal assets consist of the Pawnee crude oil terminal and a nearby development property in northeastern Weld County, Colorado. The Pawnee terminal has approximately 200 Mbbl of commingled storage capacity (with room for additional storage capacity) and is capable of receiving crude oil via truck unloading stations and connections to local crude oil gathering systems. The development property is being permitted to build a potential new crude injection terminal that, if constructed, would have the ability to provide additional unloading capacity and tankage and allow for incremental volumes to be delivered to the Northeast Colorado Lateral.

    View Arc Logistics press release