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  • Data analysis BP Finds Gas at Qattameya Shallow-1 Well, Off Egypt

    BP made a gas discovery at Qattameya Shallow-1 exploration well in the North Damietta Offshore Concession in the East Nile Delta, Egypt. The well is located 60 km north of Damietta city, 30 km south-west of Salamat and only 35 km to the west of Ha’py offshore facilities.The exploration well was drilled...

    BP Finds Gas at Qattameya Shallow-1 Well, Off EgyptData analysis
    Exploration

    BP made a gas discovery at Qattameya Shallow-1 exploration well in the North Damietta Offshore Concession in the East Nile Delta, Egypt. The well is located 60 km north of Damietta city, 30 km south-west of Salamat and only 35 km to the west of Ha’py offshore facilities.

    The exploration well was drilled to a total depth of 1,961m in water depth of approximately 108m using the El Qaher II jack-up rig. The wireline logs, pressure data and fluid samples confirmed the presence of 37m of net gas pay in high quality Pliocene sandstones.

    BP has 100% equity in the discovery.

    View BP press release

  • Data analysis Cairn Energy Hits Pay at VR-1 Well, Offshore Senegal

    Cairn Energy has discovered oil at VR-1 well, offshore Senegal.The VR-1 well is located approximately 5 km west of the SNE-1 discovery well and is being drilled to appraise the lower and upper reservoir units in the western part of the SNE field.The well has reached a depth of 2759m, wireline logging and...

    Cairn Energy Hits Pay at VR-1 Well, Offshore SenegalData analysis
    Exploration

    Cairn Energy has discovered oil at VR-1 well, offshore Senegal.

    The VR-1 well is located approximately 5 km west of the SNE-1 discovery well and is being drilled to appraise the lower and upper reservoir units in the western part of the SNE field.

    The well has reached a depth of 2759m, wireline logging and sampling through the SNE section are complete and preparations are underway for deepening the well into the Aptian carbonate objectives below the SNE field.

    FAR’s evaluation of the well results are as follows:

    • The reservoir units are in oil as prognosed
    • The lower, 500 series 520 reservoir (16m in oil), a key reservoir to the phase 1 development of the SNE field, exhibited excellent reservoir properties, superior to all other reservoirs sampled in the SNE field to date
    • The deeper 540 reservoir (11m in oil) has only been seen in the SNE-2 well in oil (2m)
    • Samples of oil have been taken
    • Along with other appraisal wells, the well confirmed a 97m gross oil column with greater than expected net pay and thickest net pay of all appraisal wells drilled to date

    The well will also assess the potential for additional reservoir units within the upper reservoirs in the western part of the SNE field. In addition, the VR-1 well will examine deeper Aptian carbonate exploration targets under the SNE field.

    View FAR Limited press release

    Ownership of VR-1 well: Cairn Energy (40%, operator), Woodside (35%), FAR Limited (15%) and Petrosen (10%).

  • Data analysis Hurricane Makes Oil Discovery at Halifax Well, Off UK

    Hurricane Energy has discovered oil at 205/23-3A well (the Halifax well), offshore UK.The principal objective of the Halifax well was to support the company's view that the Lancaster Field and the Halifax prospect are one large connected structure. The Halifax well has successfully identified an extensive...

    Hurricane Makes Oil Discovery at Halifax Well, Off UKData analysis
    Exploration

    Hurricane Energy has discovered oil at 205/23-3A well (the Halifax well), offshore UK.

    The principal objective of the Halifax well was to support the company's view that the Lancaster Field and the Halifax prospect are one large connected structure. The Halifax well has successfully identified an extensive oil column, significantly below local structural closure. The reservoir interval encountered is pervasively fractured with porosities similar to those at Lancaster. The company believes that the deeper oil down to (ODT) at 1,846m true vertical depth subsea (TVDSS) identified in the Halifax Well, compared with an oil water contact (OWC) at Lancaster at 1,678m TVDSS, and is most likely caused by a tilted OWC.

    The Halifax well was drilled by the Spitsbergen rig, and cased to 1,179m TVDSS in accordance with the company's drilling program which was designed to isolate a potential gas cap and oil bearing column to a depth of 100m true vertical thickness (TVT) below structural closure. It was subsequently drilled to 1,801m TVDSS and a Drill Stem Test (DST) was undertaken. The well was finally TD'ed at 2,004m TVDSS, with no confirmed OWC encountered.

    Preliminary third party analysis from the Halifax Well indicates:

    • a very significant hydrocarbon column of at least 1,156m is present within the basement extending well below local structural closure (which is at 1,040m TVDSS);
    • that the basement reservoir below the final casing point (1,179m TVDSS) is pervasively fractured (based on initial analysis of borehole image logs processing); and
    • that porosity is consistent with that at Lancaster (based on initial petrophysical analysis)

    The Halifax well has now been suspended.

    View Hurricane press release

    Ownership of 205/23-3A: Hurricane Energy Plc (100%, operator).

  • Data analysis Statoil Makes Minor Discovery at 34/10-55 S Well, North Sea

    Statoil has made a minor discovery at 34/10-55 S well in PL193, North Sea. The well was drilled from the Gullfaks C platform to a structure east of the Gimle field, about 7 km north-east of the Gullfaks field and 7 km south of the Visund Sor field in the northern part of the North Sea.The objective of the...

    Statoil Makes Minor Discovery at 34/10-55 S Well, North SeaData analysis
    Exploration

    Statoil has made a minor discovery at 34/10-55 S well in PL193, North Sea. The well was drilled from the Gullfaks C platform to a structure east of the Gimle field, about 7 km north-east of the Gullfaks field and 7 km south of the Visund Sor field in the northern part of the North Sea.

    The objective of the well was to prove petroleum in Middle Jurassic, Early Jurassic and Late Triassic reservoir rocks (Brent group, Statfjord group and Lunde formation).

    34/10-55 S was drilled to a vertical and measured depth of 3228m and 7811m, respectively, below the sea surface, and was terminated in the Lunde formation in the Triassic. Water depth is 220m.

    Well 34/10-55 S encountered a total oil and gas column of about 170m, of which 60m are in sandstone with good to very good reservoir properties in the Statfjord group and 10m in sandstone with moderate to good properties in the Lunde formation.

    Preliminary calculations indicate that the discovery contains between 1-3 MMcm of recoverable oil equivalents. The discovery will be produced from a subsequent development well from the Gullfaks C platform.

    The well will now be permanently plugged and abandoned.

    View NPD press release

    Ownership of PL193: Statoil (70%, operator) and Petoro AS (30%).

  • Data analysis Shell Exits Gabon

    Royal Dutch Shell, through its affiliates, has reached an agreement with Assala Energy Holdings to sell 100% of its Gabon onshore interests for $587 million.This transaction consists of all of Shell’s onshore oil and gas operations and related infrastructure in Gabon: five operated fields (Rabi,...

    Shell Exits GabonData analysis
    Global Deals

    Royal Dutch Shell, through its affiliates, has reached an agreement with Assala Energy Holdings to sell 100% of its Gabon onshore interests for $587 million.

    This transaction consists of all of Shell’s onshore oil and gas operations and related infrastructure in Gabon: five operated fields (Rabi, Toucan/Robin, Gamba/Ivinga, Koula/Damier, and Bende/M’Bassou/Totou), participation interest in four non-operated fields (Atora, Avocette/M’Boukou, Coucal, and Tsiengui West), as well as the associated infrastructure of the onshore pipeline system from Rabi to Gamba and the Gamba Southern export terminal. Shell onshore in Gabon produced approximately 41 MBOE/d in 2016 and Shell Trading (STASCO) will continue to have lifting rights from the assets for the coming five years.

    Closing is expected in mid-2017.

    View Shell press release

  • Data analysis Sinopec Buys South African Assets from Chevron

    China's Sinopec has agreed to pay almost $1 billion for a 75% stake in Chevron Corp's South African assets and its subsidiary in Botswana, securing its first major refinery on the continent.China Petroleum and Chemical Corp, or Sinopec, said the assets include a 100 Mbbl/d oil refinery in Cape Town, a...

    Sinopec Buys South African Assets from ChevronData analysis
    Headlines, Global Deals

    China's Sinopec has agreed to pay almost $1 billion for a 75% stake in Chevron Corp's South African assets and its subsidiary in Botswana, securing its first major refinery on the continent.

    China Petroleum and Chemical Corp, or Sinopec, said the assets include a 100 Mbbl/d oil refinery in Cape Town, a lubricants plant in Durban as well as 820 petrol stations and other oil storage facilities. They also include 220 convenience stores across South Africa and Botswana.

    Sinopec said it would retain the whole workforce as well as the existing Caltex brand for the retail fuel stations for up to six years before launching a rebranding strategy. The remaining 25% of the South African assets will continue to be held by a group of local shareholders, in accordance with South African regulations.

    Source: Reuters

  • Data analysis Marathon Oil in $700 Million Northern Delaware Acquisition

    Marathon Oil Corporation signed a definitive agreement to acquire approximately 21,000 net surface acres largely in the Permian's Northern Delaware basin of New Mexico from Black Mountain Oil & Gas and other private sellers for $700 million in cash, excluding closing adjustments.Black Mountain Acreage...

    Marathon Oil in $700 Million Northern Delaware AcquisitionData analysis
    Global Deals

    Marathon Oil Corporation signed a definitive agreement to acquire approximately 21,000 net surface acres largely in the Permian's Northern Delaware basin of New Mexico from Black Mountain Oil & Gas and other private sellers for $700 million in cash, excluding closing adjustments.

    Black Mountain Acreage Highlights:

    • Up to 10 target benches within approximately 5,000 ft of stacked pay; base case assumes up to 6 target benches
    • Approximately 21,000 net acres with 20,000 net acres in the Northern Delaware basin; primary targets in world-class Wolfcamp and Bone Spring; roughly 400 BOE/d of current production
    • Approximately 230 MMBOE of risked resource with 440 gross Company operated locations
    • Approximately 550 MMBOE of total resource potential with 950 total gross Company operated locations
    • High quality Northern Delaware inventory produces greater than 90% before-tax IRRs at $55 WTI flat and competes for capital allocation at top of Marathon Oil's portfolio

    Combined Permian Acreage Highlights:

    • Approximately 91,000 net Permian acres including 71,500 in the Northern Delaware
    • Implied total acreage cost of $18,400/Acre, or $23,400 per Northern Delaware acre, adjusting for existing production
    • Approximately 580 MMBOE of risked resource with 1,070 gross Company operated locations
    • Approximately 1.45 BBOE of total resource potential with 2,650 total gross Company operated locations from both tighter density and secondary targets
    • Further upside opportunities from 18,500 net acres in Northwest Shelf
    • One operated rig drilling with plans to add two more rigs mid-year

    The Black Mountain acquisition is expected to close in Q2-2017.

    View Marathon press release

  • Data analysis Borr Drilling to Acquire Jack-Up Rigs for $1.35 Billion

    Borr Drilling signs a Letter of Intent with Transocean for the acquisition of 15 high-specification jack-up rigs for $1.35 billion, which includes remaining contract backlog and remaining yard instalments to Keppel Fels for the five new-builds. The transaction consists of Transocean’s entire jack-up...

    Borr Drilling to Acquire Jack-Up Rigs for $1.35 BillionData analysis
    Headlines, Global Deals

    Borr Drilling signs a Letter of Intent with Transocean for the acquisition of 15 high-specification jack-up rigs for $1.35 billion, which includes remaining contract backlog and remaining yard instalments to Keppel Fels for the five new-builds. The transaction consists of Transocean’s entire jack-up fleet, comprising 10 rigs in Transocean’s fleet and 5 new-builds under construction at Keppel Fels.

    The completion of the transaction is expected to take place before the end of May-2017.

    View Borr press release

  • Data analysis Armstrong Discovers Oil at Horseshoe-1 Well in Alaska

    Armstrong Energy has made oil discoveries at Horseshoe-1 and 1A wells in Alaska, onshore US.  The wells confirm the Nanushuk play as a significant emerging play in Alaska’s North Slope. The contingent resources identified with the existing data in Repsol and Armstrong Energy’s blocks in the...

    Armstrong Discovers Oil at Horseshoe-1 Well in AlaskaData analysis
    Headlines, Exploration

    Armstrong Energy has made oil discoveries at Horseshoe-1 and 1A wells in Alaska, onshore US.  

    The wells confirm the Nanushuk play as a significant emerging play in Alaska’s North Slope. The contingent resources identified with the existing data in Repsol and Armstrong Energy’s blocks in the Nanushuk play in Alaska could amount to approximately 1.2 Bbbl of recoverable light oil.

    The Horseshoe-1 discovery well was drilled to a total depth of 6,000 ft (1,828m) and encountered more than 150 ft of net oil pay in several reservoir zones in the Nanushuk section. The Horseshoe-1A sidetrack was drilled to a total depth of 8,215 ft and encountered more than 100 ft of net oil pay in the Nanushuk interval as well.

    The Horseshoe discovery extends the Nanushuk play more than 20 miles south of the existing discoveries achieved by Repsol and Armstrong in the same interval within the Pikka Unit during 2014 and 2015, where permitting for development activities are underway. Preliminary development concepts for Pikka anticipate first production there from 2021, with a potential rate approaching 120 Mbbl/d.

    Ownership of Horseshoe discovery: Armstrong (75%, operator) and Repsol (25%).

    View Repsol press release

  • Data analysis Statoil Encounters Gas at 6507/3-12 Well, Norwegian Sea

    Statoil makes a minor gas discovery at 6507/3-12 well in PL159 B, Norwegian Sea. The well was drilled about six km east of the Alve field in the northern part of the Norwegian Sea and about 200 km west of Sandnessjoen.The primary exploration target for wildcat well 6507/3-12 was to prove petroleum in Middle...

    Statoil Encounters Gas at 6507/3-12 Well, Norwegian SeaData analysis
    Exploration

    Statoil makes a minor gas discovery at 6507/3-12 well in PL159 B, Norwegian Sea. The well was drilled about six km east of the Alve field in the northern part of the Norwegian Sea and about 200 km west of Sandnessjoen.

    The primary exploration target for wildcat well 6507/3-12 was to prove petroleum in Middle Jurassic reservoir rocks (Garn and Not formations). The secondary exploration target was to prove petroleum in Middle Jurassic reservoir rocks (Ile formation). Another goal was to collect geological data if Cretaceous sandstone rocks were present.

    Well 6507/3-12 encountered a total gas column of about 7m in a Late Cretaceous sandstone layer with good reservoir properties. In the primary and secondary exploration targets, the well encountered about 30m of aquiferous sandstone in the Garn and Not formations, and about 65m of aquiferous sandstone in the Ile and Tofte formations, all with good to moderate reservoir properties.

    Preliminary estimations place the size of the discovery between 1-5 Bcm of recoverable gas. The licensees will assess the discovery along with other nearby discoveries/prospects with regard to a possible development.

    Well 6507/3-12 was drilled by the Deep Sea Bergen drilling facility to a vertical depth of 3,428m below the sea surface, and was terminated in the Tofte formation in the Early Jurassic. Water depth is 381m. The wells will be permanently plugged and abandoned.

    View NPD press release

  • Data analysis Marathon Acquires Permian Acreage for $1.1 Billion

    Marathon Oil has signed a definitive agreement to acquire approximately 70,000 net surface acres in the Permian basin from BC Operating and other entities for $1.1 billion in cash. The acquisition includes 51,500 acres in the Northern Delaware basin of New Mexico, and current production of approximately 5...

    Marathon Acquires Permian Acreage for $1.1 BillionData analysis
    Headlines, Global Deals

    Marathon Oil has signed a definitive agreement to acquire approximately 70,000 net surface acres in the Permian basin from BC Operating and other entities for $1.1 billion in cash. The acquisition includes 51,500 acres in the Northern Delaware basin of New Mexico, and current production of approximately 5 MBOE/d.

    Permian Basin Acquisition Highlights:

    • Up to 10 target benches within approximately 5,000 feet of stacked pay; base case assumes up to 6 target benches
    • 70,000 total net acres with 51,500 net acres in the Northern Delaware basin
    • Total implied acreage cost of approximately $13,900/Acre, adjusting for existing production
    • High quality Northern Delaware inventory produces greater than 90% before-tax IRRs at $55 WTI flat and competes for capital allocation at top of Marathon Oil's portfolio
    • Primary targets in world-class Wolfcamp and Bone Spring
    • Approximately 350 MMBOE of risked resource at a cost of about $2.80 per BOE with 630 gross Company operated locations
    • Approximately 900 MMBOE of total resource potential with 1,700 total upside locations from both tighter density and secondary targets
    • Further growth opportunities from acquired acreage in Northwest Shelf as well as further bolt-on acquisitions
    • One operated rig drilling with plans to add a second rig mid-year; one rig required to hold term lease

    The BC acquisition is expected to close in Q2-2017.

    View Marathon press release

  • Data analysis Shell Divests Oil Sands Interests in Canada for $7.3 Billion

    Royal Dutch Shell has announced the signing of two agreements by Shell Canada Energy, Shell Canada Limited and Shell Canada Resources (Shell) as per which Shell will sell all of its in-situ and undeveloped oil sands interests in Canada, and reduce its share in the Athabasca Oil Sands Project (AOSP) from 60%...

    Shell Divests Oil Sands Interests in Canada for $7.3 BillionData analysis
    Headlines, Global Deals

    Royal Dutch Shell has announced the signing of two agreements by Shell Canada Energy, Shell Canada Limited and Shell Canada Resources (Shell) as per which Shell will sell all of its in-situ and undeveloped oil sands interests in Canada, and reduce its share in the Athabasca Oil Sands Project (AOSP) from 60% to 10%. Shell will remain as operator of AOSP’s Scotford upgrader and Quest carbon capture and storage (CCS) project.

    Under the first agreement, Shell will sell to a subsidiary of Canadian Natural Resources Limited its entire 60% interest in AOSP, its 100% interest in the Peace River Complex in-situ assets, including Carmon Creek, and a number of undeveloped oil sands leases in Alberta, Canada. The consideration to Shell from Canadian Natural is approximately $8.5 billion (C$11.1 billion), comprised of $5.4 billion in cash plus around 98 million Canadian Natural shares currently valued at $3.1 billion.

    Separately and under the second agreement, Shell and Canadian Natural will jointly acquire and own equally Marathon Oil Canada Corporation (MOCC), which holds a 20% interest in AOSP, from an affiliate of Marathon Oil Corporation for $1.25 billion each, to be settled in cash.

    The combination of these transactions will result in a net consideration of $7.25 billion to Shell. In addition to the cash proceeds and Canadian Natural shares, the divestment includes additional intellectual property agreements valued at up to $285 million and a long-term supply agreement for the Scotford refinery.

    On completion of all transactions listed above, it is envisaged that Canadian Natural will be the operator of the AOSP upstream mining assets.

    Shell and Canadian Natural have agreed that, subject to closing of the transactions and additional further conditions, Shell may swap its 50% purchased interest of MOCC for a 20% interest in assets of the Scotford upgrader and Quest CCS project. If the swap were to occur, Shell would fully exit AOSP’s mining operations and hold a 20% interest in the Scotford upgrader and Quest CCS project. 

    Prior to this announcement, the Athabasca Oil Sands Project (AOSP) was a joint venture between Shell Canada Energy (60%), Chevron Canada Limited (20%) and Marathon Oil Canada Corporation (20%).

    AOSP includes the Shell Albian Sands mining and extraction operations (Muskeg River and Jackpine mines) north of Fort McMurray, Alberta and the Scotford upgrader and Quest CCS project north-east of Edmonton, Alberta. Production capacity of both the mine and the upgrader is 255 Mbbl/d.

    The Peace River Complex includes facilities at Peace River, Carmon Creek and Cliffdale. 2016 full year production from these assets was approximately 14.8 Mbbl/d.

    Undeveloped oil sands mining leases include the area designated as Jackpine Mine Expansion 88, 89, 90, 30, 36, 632, 15, 631 north of AOSP, Pierre River Mine 9, 14, 17, 352 north of Canadian Natural’s Horizon project and exploration mining leases 839, 512, 913, 914 east of the Teck Resources Frontier Mine project.

    The transactions also include the Grosmont leases approximately 140 km west of Fort McMurray.

    The transactions are expected to close mid-2017.

    View Shell press release

  • Data analysis OMV Sells OMV Petrol Ofisi to Vitol Group for $1.4 Billion

    OMV has reached an agreement for the sale of its Turkish fuel supply and distribution company OMV Petrol Ofisi AS to VIP Turkey Enerji AS, a subsidiary of Vitol Investment Partnership Ltd, for €1.37 billion (US$1.44 billion). The transaction is effected via a sale of 100% of the shares of OMV's...

    OMV Sells OMV Petrol Ofisi to Vitol Group for $1.4 BillionData analysis
    Headlines, Global Deals

    OMV has reached an agreement for the sale of its Turkish fuel supply and distribution company OMV Petrol Ofisi AS to VIP Turkey Enerji AS, a subsidiary of Vitol Investment Partnership Ltd, for €1.37 billion (US$1.44 billion). The transaction is effected via a sale of 100% of the shares of OMV's Turkish holding company OMV Petrol Ofisi Holding AS.

    The transaction is anticipated to close in Q3-2017.

    View OMV press release

  • Data analysis OMV Buys $1.85 Billion Stake in Yuzhno Russkoye Field

    OMV has reached an agreement with Uniper SE for the acquisition of shares in two Russian companies (OJSC Severneftegazprom and JSC Gazprom YRGM Development) for a purchase price $1.85 billion plus cash on balance sheet per 31-Dec-2016. The transaction provides for OMV receiving 24.99% of the economic rights...

    OMV Buys $1.85 Billion Stake in Yuzhno Russkoye FieldData analysis
    Headlines, Global Deals

    OMV has reached an agreement with Uniper SE for the acquisition of shares in two Russian companies (OJSC Severneftegazprom and JSC Gazprom YRGM Development) for a purchase price $1.85 billion plus cash on balance sheet per 31-Dec-2016. The transaction provides for OMV receiving 24.99% of the economic rights in the production of the Yuzhno Russkoye field in Western Siberia.

    The Yuzhno Russkoye field is one of the largest gas fields in Russia, situated in the Yamal-Nenets region. OMV’s share of the remaining recoverable reserves during the license term (lasting until the end of the year 2043) amounts to approximately 580 MMBOE. OMV’s share of the daily production is estimated to be 100 MBOE/d.

    The transaction is anticipated to close by year end and will be retroactively effective as of 1-Jan-2017.

    View OMV press release

  • Data analysis Marathon Drops Down Assets to MPLX for $2 Billion

    Marathon Petroleum Corp (MPC) and MPLX LP have closed a transaction as per which MPC contributed certain terminal, pipeline and storage assets to MPLX for total consideration of $2 billion.The assets include 62 light-product terminals with approximately 24 MMbbl of storage capacity; 11 pipeline systems...

    Marathon Drops Down Assets to MPLX for $2 BillionData analysis
    Headlines, Global Deals

    Marathon Petroleum Corp (MPC) and MPLX LP have closed a transaction as per which MPC contributed certain terminal, pipeline and storage assets to MPLX for total consideration of $2 billion.

    The assets include 62 light-product terminals with approximately 24 MMbbl of storage capacity; 11 pipeline systems consisting of 604 miles of pipeline; 73 tanks with approximately 7.8 MMbbl of storage capacity; a crude oil truck unloading facility at MPC's refinery in Canton, Ohio; and eight natural gas liquids storage caverns in Woodhaven, Michigan, with approximately 1.8 MMbbl of capacity.

    MPC is contributing these assets in exchange for the issuance of $504 million in MPLX equity and $1.511 billion in cash. The equity to be issued in the transaction consists of MPLX common units and general partner units to maintain MPC's 2% general partner interest in MPLX. The units will be valued based on the 10-day volume weighted average price of MPLX common units prior to the closing.

    View Marathon press release

  • Data analysis Zhenhua Oil to Buy Chevron's Bangladesh Gas Fields

    Reuters reported, quoting two Beijing-based Chinese oil executives, that China's state-run Zhenhua Oil has signed a preliminary deal with Chevron to buy the natural gas fields in Bangladesh that are worth about $2 billion.Zhenhua will partner with China Reform Holdings Corp Ltd, an investment vehicle...

    Zhenhua Oil to Buy Chevron's Bangladesh Gas FieldsData analysis
    Headlines, Global Deals

    Reuters reported, quoting two Beijing-based Chinese oil executives, that China's state-run Zhenhua Oil has signed a preliminary deal with Chevron to buy the natural gas fields in Bangladesh that are worth about $2 billion.

    Zhenhua will partner with China Reform Holdings Corp Ltd, an investment vehicle under the State-owned Assets Supervision and Administration Commission (SASAC). Zhenhua will hold 60% of the deal and China Reform 40%, the two executives said.

    Chevron sells the entire output from its three gas fields - Bibiyana, Jalalabad and Moulavi Bazar, to state energy firm Petrobangla under a production sharing contract.

    Zhenhua is a subsidiary of China's defense industry conglomerate NORINCO. Zhenhua Oil has oil and gas operations in Iraq, Kazakhstan, Syria, Myanmar and Egypt.

    Source: Reuters

  • Data analysis Lukoil Finds Oil at Eridu-1 Well, Iraq

    Lukoil and Inpex have successfully completed the testing of the first exploratory well, Eridu-1, at Block 10 in Southern Iraq. The well recorded daily flow rate of more than 1,000 cubic meters of sweet oil from Mishrif horizon, confirming geological expectations of a large hydrocarbon field presence within...

    Lukoil Finds Oil at Eridu-1 Well, IraqData analysis
    Exploration

    Lukoil and Inpex have successfully completed the testing of the first exploratory well, Eridu-1, at Block 10 in Southern Iraq. The well recorded daily flow rate of more than 1,000 cubic meters of sweet oil from Mishrif horizon, confirming geological expectations of a large hydrocarbon field presence within the Block 10 contract area. Geological exploration at the block is in progress and work program for 2017 includes the drilling and testing of an appraisal well Eridu-2.

    View Lukoil press release

    Ownership structure of Block 10: Lukoil (60%, operator) and Inpex (40%).

  • Data analysis ADNOC Awards 8% Stake in ADCO Concession to CNPC

    Abu Dhabi National Oil Company (ADNOC) has signed an agreement with the China National Petroleum Corporation (CNPC) to award it an 8% interest in Abu Dhabi’s onshore oil concession. CNPC contributed a sign up bonus of $1.77 billion to enter the concession. The onshore concession is operated by the Abu...

    ADNOC Awards 8% Stake in ADCO Concession to CNPCData analysis
    Headlines, Global Deals

    Abu Dhabi National Oil Company (ADNOC) has signed an agreement with the China National Petroleum Corporation (CNPC) to award it an 8% interest in Abu Dhabi’s onshore oil concession. CNPC contributed a sign up bonus of $1.77 billion to enter the concession. The onshore concession is operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO).

    The agreement has a term of 40 years, back-dated to 1-Jan-2015.

    View ADNOC press release

  • Data analysis Lundin Makes Oil Discovery at 7219/12-1 Well, Barents Sea

    Lundin Petroleum has made an oil and gas discovery in the 7219/12-1 well on the Filicudi prospect, located in PL533 license, approximately 40 km south-west of Johan Castberg and 30 km north-west of the Alta and Gohta discoveries on the Loppa High in the southern Barents Sea.The main objective of the well was...

    Lundin Makes Oil Discovery at 7219/12-1 Well, Barents SeaData analysis
    Exploration

    Lundin Petroleum has made an oil and gas discovery in the 7219/12-1 well on the Filicudi prospect, located in PL533 license, approximately 40 km south-west of Johan Castberg and 30 km north-west of the Alta and Gohta discoveries on the Loppa High in the southern Barents Sea.

    The main objective of the well was to prove oil in Jurassic and Triassic sandstone reservoirs. The well, drilled by the Leiv Eiriksson rig, encountered a gross 129m hydrocarbon column of high quality sandstone reservoir characteristics, with 63m of oil and 66m gas in the Jurassic and Triassic targets. Extensive data acquisition and sampling has been carried out including coring, logging and oil and gas sampled from the wireline tools.

    The gross resource estimate for the Filicudi discovery is between 35-100 MMBOE. Well results indicate significant upside potential that require further appraisal drilling.

    View Lundin press release

    Ownership of PL533: Lundin Petroleum (35%, operator), Aker BP (35%) and L1 Energy (30%).

  • Total Q4-2016 Net Profit Rises to $2.4 Billion

    Total reported a 16% YoY growth in Q4-2016 net profit to $2.4 billion. Income from Upstream segment grew 51% YoY to $1.13 billion, and income from refining and chemicals segment was up 13% YoY to $1.14 billion. Marketing and Services segment income fell 22% YoY to $411 million.Net production was up 4.7% YoY...

    Total Q4-2016 Net Profit Rises to $2.4 Billion
    Headlines, Results & Reports

    Total reported a 16% YoY growth in Q4-2016 net profit to $2.4 billion. Income from Upstream segment grew 51% YoY to $1.13 billion, and income from refining and chemicals segment was up 13% YoY to $1.14 billion. Marketing and Services segment income fell 22% YoY to $411 million.

    Net production was up 4.7% YoY to 2.5 MMBOE/d, aided by the start up and ramp up of projects including Laggan-Tormore, Vega Pleyade, Surmont Phase 2, Moho Phase 1b, and Incahuasi.

    View Total press release

  • Data analysis Stone Energy Divests Appalachia Assets for $527 Million

    Stone Energy has sold all of its approximately 86,000 net acres in the Appalachia regions of Pennsylvania and West Virginia, including approximately 53,000 core net Marcellus acres and drilling rights on approximately 44,000 net acres in the Utica, to EQT Corporation, through its wholly-owned subsidiary EQT...

    Stone Energy Divests Appalachia Assets for $527 MillionData analysis
    Global Deals

    Stone Energy has sold all of its approximately 86,000 net acres in the Appalachia regions of Pennsylvania and West Virginia, including approximately 53,000 core net Marcellus acres and drilling rights on approximately 44,000 net acres in the Utica, to EQT Corporation, through its wholly-owned subsidiary EQT Production Company (EQT), for a sales price of $527 million.

    Stone Energy expects to close the sale of the assets by 28-Feb-2017.

    View Stone Energy press release

  • Data analysis Parsley Acquires Midland Basin Assets for $2.8 Billion

    Parsley Energy has entered into an agreement to acquire certain undeveloped acreage and producing oil and gas properties in the core of the Midland Basin from Double Eagle Energy Permian LLC for an aggregate purchase price of approximately $2.8 billion.Upon completion, the pending acquisition will add...

    Parsley Acquires Midland Basin Assets for $2.8 BillionData analysis
    Headlines, Global Deals

    Parsley Energy has entered into an agreement to acquire certain undeveloped acreage and producing oil and gas properties in the core of the Midland Basin from Double Eagle Energy Permian LLC for an aggregate purchase price of approximately $2.8 billion.

    Upon completion, the pending acquisition will add approximately 71,000 net acres to the Parsley's Midland Basin acreage portfolio, bringing total Permian Basin net acreage to approximately 227,000 acres.

    Acquisition highlights:

    • Approximately 71,000 net leasehold acres
    • Estimated net production of approximately 3.6 MBOE/d as of 1-Jan-2017
    • 23 drilled uncompleted wells, variously targeting the Lower Spraberry, Middle Spraberry, Wolfcamp A, and Wolfcamp B formations, with an average lateral length of approximately 8,400 ft, valued at approximately $75-$100 million in aggregate
    • Approximately 3,300 net horizontal drilling locations, including approximately 1,800 net locations in high priority target intervals (Lower Spraberry, Wolfcamp A, Wolfcamp B)
    • Average lateral length of approximately 6,600 ft on acquired horizontal drilling locations; more than 40% of acquired horizontal drilling locations have lateral lengths of 7,500 ft or more
    • Operating control on 80% of net horizontal drilling locations
    • Incremental value potential through ongoing acreage trades, bolt-on acquisitions, and working interest buyouts; Double Eagle to assist with asset operation and handoff, as well as acreage trades and purchases after closing

    Consideration consists of approximately $1.4 billion of cash and approximately 39.4 million units of Parsley Energy LLC (together with a corresponding number of shares of Parsley Energy class B common stock) valued at approximately $1.4 billion; Parsley intends to finance the cash portion of the consideration through equity and debt offerings announced concurrently with the acquisition.

    The transaction is scheduled to close on or before 20-Apr-2017.

    View Parsley press release

  • BP Q4-2016 Profit Rises to $400 Million

    BP reported Q4-2016 underlying replacement cost (RC) profit of $400 million, compared to $196 million in Q4-2015. Upstream segment reported a profit of $400 million, compared to the loss of $728 million in Q4-2015. Profit from downstream segment dropped to $877 million compared to $1.2 billion in...

    BP Q4-2016 Profit Rises to $400 Million
    Headlines, Results & Reports

    BP reported Q4-2016 underlying replacement cost (RC) profit of $400 million, compared to $196 million in Q4-2015. Upstream segment reported a profit of $400 million, compared to the loss of $728 million in Q4-2015. Profit from downstream segment dropped to $877 million compared to $1.2 billion in Q4-2015.

    Q4-2016 capex was slashed to $5.1 billion compared with $6.1 billion in Q4-2015.

    View BP press release

  • Data analysis Delek Offers to Take-Over Ithaca Energy

    Ithaca Energy has entered into a definitive support agreement with Delek Group on the terms of a cash take-over bid for all of the issued and to be issued common shares of Ithaca not currently owned by Delek or any of its affiliates for C$1.95 per share (US$1.49).Highlights:The offer is for a cash...

    Delek Offers to Take-Over Ithaca EnergyData analysis
    Global Deals

    Ithaca Energy has entered into a definitive support agreement with Delek Group on the terms of a cash take-over bid for all of the issued and to be issued common shares of Ithaca not currently owned by Delek or any of its affiliates for C$1.95 per share (US$1.49).

    Highlights:

    • The offer is for a cash consideration of C$1.95 per share, which equates to £1.20 (US$1.49) per share based on the exchange rate on 3-Feb-2017
    • The offer is unanimously recommended by the Board of Directors of Ithaca (excluding the Delek related party Directors) and values the entire issued and to be issued share capital of the Ithaca Energy at C$841 million (US$646 million)
    • The offer provides shareholders with the opportunity to crystallize the value of their holdings in cash and represents a 12% premium to the TSX closing price of C$1.74 per share on 3-Feb-2017 and a 16% and 27% premium to the 30 day and 60 day volume weighted average prices respectively
    • The offer price represents a substantial premium to the average analyst consensus target price of C$1.60 per share
    • The offer implies a total enterprise value of approximately US$1.24 billion

    Delek is an Israeli listed conglomerate with significant natural gas exploration and production activities in the Eastern Mediterranean and an existing 19.7% shareholder in Ithaca. Ithaca Energy is a North Sea oil and gas operator focused on the delivery of lower risk growth through the appraisal and development of UK undeveloped discoveries and the exploitation of its existing UK producing asset portfolio.

    View Ithaca press release

  • Data analysis Statoil Discovers Gas at Valemon West Well, North Sea

    Statoil has made a gas discovery at Valemon West well, North Sea. The discovery is estimated to contain between 20-50 MMBOE.The well was drilled in production licence 193 D at Valemon Unit, 160 km north-west of Bergen, by the jackup rig West Elara to a vertical depth of 4,337m below sea level. Water depth in...

    Statoil Discovers Gas at Valemon West Well, North SeaData analysis
    Exploration

    Statoil has made a gas discovery at Valemon West well, North Sea. The discovery is estimated to contain between 20-50 MMBOE.

    The well was drilled in production licence 193 D at Valemon Unit, 160 km north-west of Bergen, by the jackup rig West Elara to a vertical depth of 4,337m below sea level. Water depth in the area is 133.5m.

    Ownership of Valemon Unit: Statoil (53.8%, operator), Petoro AS (30%), Centrica (13%) and Shell (3.2%).

    View Statoil press release

  • Shell 2016 Earnings Fall to $7.2 Billion

    Shell reported 2015 CCS earnings excluding identified items of $7.2 billion compared with $11.4 billion in 2015, a decrease of 37% YoY.Full year upstream earnings excluding identified items were a loss of $2.7 billion compared with a loss of $2.3 billion in 2015. Full year downstream earnings excluding...

    Shell 2016 Earnings Fall to $7.2 Billion
    Headlines, Results & Reports

    Shell reported 2015 CCS earnings excluding identified items of $7.2 billion compared with $11.4 billion in 2015, a decrease of 37% YoY.

    Full year upstream earnings excluding identified items were a loss of $2.7 billion compared with a loss of $2.3 billion in 2015. Full year downstream earnings excluding identified items were $7.2 billion compared with $9.7 billion in 2015, down 26% YoY.

    Full year 2016 oil and gas production was 3.668 MMBOE/d, 24% YoY higher compared with 2015.

    View Shell press release

  • Data analysis ONEOK Acquires Remaining Stake in ONEOK Partners

    ONEOK Inc and ONEOK Partners LP have announced a definitive agreement under which ONEOK will acquire all of the outstanding common units of ONEOK Partners it does not already own for $9.3 billion in ONEOK common stock.Under the agreement, each outstanding common unit of ONEOK Partners that ONEOK does not...

    ONEOK Acquires Remaining Stake in ONEOK PartnersData analysis
    Headlines, Global Deals

    ONEOK Inc and ONEOK Partners LP have announced a definitive agreement under which ONEOK will acquire all of the outstanding common units of ONEOK Partners it does not already own for $9.3 billion in ONEOK common stock.

    Under the agreement, each outstanding common unit of ONEOK Partners that ONEOK does not already own will be converted into 0.985 shares of ONEOK common stock. In aggregate, ONEOK will issue 168.9 million shares in connection with the proposed transaction, representing approximately 44.5% of the total shares outstanding of the pro forma combined entity. ONEOK estimates the value of the transaction to be $17.2 billion. ONEOK Partners units will no longer be publicly traded. 

    ONEOK Partners is a master limited partnership, which owns natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is also engaged in the gathering, processing, storage and transportation of natural gas in the United States. Post-transaction, ONEOK is estimated to have an enterprise value of ~$30 billion and operate a network of 37,000 miles of NGLs and natural gas pipelines, processing plants, fractionaters and storage facilities located in Williston basin, Mid-Continent, Permian basin, Midwest and Gulf Coast.

    Completion of the transaction is expected to occur in Q2-2017.  

    View ONEOK press release

  • ExxonMobil 2016 Earnings Drop 51%

    ExxonMobil reported earnings of $7.84 billion for 2016, down 51% YoY. Upstream earnings were $2.2 billion in 2016, down $4.9 billion from 2015. Downstream earnings of $4.2 billion decreased $2.4 billion from 2015. Total revenue and other income in 2016 declined 15.9% YoY to $226 billion. Capital and...

    ExxonMobil 2016 Earnings Drop 51%
    Headlines, Results & Reports

    ExxonMobil reported earnings of $7.84 billion for 2016, down 51% YoY. Upstream earnings were $2.2 billion in 2016, down $4.9 billion from 2015. Downstream earnings of $4.2 billion decreased $2.4 billion from 2015. 

    Total revenue and other income in 2016 declined 15.9% YoY to $226 billion. Capital and exploration expenditures were $19.3 billion, down 38% from 2015.

    Production was down slightly at 4.1 MMBOE/d compared to 2015. Liquids production of 2.4 MMbbl/d increased 20 Mbbl/d with increased project volumes, mainly in Canada, Indonesia and Nigeria, partly offset by field decline, the impact from Canadian wildfires, and downtime notably in Nigeria.

    View ExxonMobil press release

  • Data analysis Chrysaor Buys UK North Sea Assets from Shell

    Shell has agreed to sell a package of UK North Sea assets to Chrysaor for a total of up to $3.8 billion, including an initial consideration of $3 billion and a payment of up to $600 million between 2018-2021 subject to commodity price, with potential further payments of up to $180 million for future...

    Chrysaor Buys UK North Sea Assets from ShellData analysis
    Headlines, Global Deals

    Shell has agreed to sell a package of UK North Sea assets to Chrysaor for a total of up to $3.8 billion, including an initial consideration of $3 billion and a payment of up to $600 million between 2018-2021 subject to commodity price, with potential further payments of up to $180 million for future discoveries.

    The package of assets consists of Shell’s interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine, plus a 10% stake in Schiehallion. The package represents total production of ~115 MBOE/d (Shell share) in 2016. 

    The transaction is expected to close in H2-2017.

    View Shell press release

  • Data analysis Shell Divests Bongkot Gas Field to KUFPEC for $900 Million

    Shell has reached an agreement with KUFPEC for the sale of subsidiary companies Shell Integrated Gas Thailand Pte Ltd and Thai Energy Co Ltd, for $900 million. Shell Integrated Gas Thailand and Thai Energy Co together hold a 22.222% equity stake in the Bongkot field, and adjoining acreage offshore...

    Shell Divests Bongkot Gas Field to KUFPEC for $900 Million Data analysis
    Global Deals

    Shell has reached an agreement with KUFPEC for the sale of subsidiary companies Shell Integrated Gas Thailand Pte Ltd and Thai Energy Co Ltd, for $900 million. Shell Integrated Gas Thailand and Thai Energy Co together hold a 22.222% equity stake in the Bongkot field, and adjoining acreage offshore Thailand consisting of Blocks 15, 16 and 17 and Block G12/48, for $900 million.

    Post-transaction ownership structure of Bongkot Asset: PTTEP (44.445%, operator), Total (33.333%) and KUFPEC (22.222%).

    View Shell press release

  • Chevron Reports $415 Million Net Income in Q4-2016

    Chevron reported earnings of $415 million in Q4-2016, compared with a loss of $588 million in Q4-2015. Full-year 2016 results were a loss of $497 million compared with earnings of $4.6 billion in 2015.The upstream segment reported earnings of $930 million in Q4-2016, against the Q4-2015 loss of $1.36 billion....

    Chevron Reports $415 Million Net Income in Q4-2016
    Headlines, Results & Reports

    Chevron reported earnings of $415 million in Q4-2016, compared with a loss of $588 million in Q4-2015. Full-year 2016 results were a loss of $497 million compared with earnings of $4.6 billion in 2015.

    The upstream segment reported earnings of $930 million in Q4-2016, against the Q4-2015 loss of $1.36 billion. Q4-2016 earnings from the downstream segment fell to $357 million from $1.01 billion in Q4-2015.

    Q4-2016 total revenue and other income was $31.5 billion compared to $29.25 billion in Q4-2015. Total capex in Q4-2016 was $5.26 billion compared to $8.7 billion in Q4-2015.

    View Chevron press release

  • Data analysis AltaGas Acquires WGL Holdings for $6.4 Billion

    AltaGas Ltd has signed a definitive agreement to acquire WGL Holdings in an all cash transaction for approximately $6.4 billion. The combined company is expected to have an enterprise value of approximately $17 billion and approximately $3.4 billion in natural gas rate base assets.Post-transaction, WGL will...

    AltaGas Acquires WGL Holdings for $6.4 BillionData analysis
    Headlines, Global Deals

    AltaGas Ltd has signed a definitive agreement to acquire WGL Holdings in an all cash transaction for approximately $6.4 billion. The combined company is expected to have an enterprise value of approximately $17 billion and approximately $3.4 billion in natural gas rate base assets.

    Post-transaction, WGL will continue to manage its regulated utility business, while also assisting in the management of AltaGas’ US regulated utility business. Including WGL, the new company will have its operations and assets in the United States and Canada. Following the closing of the transaction, WGL’s natural gas utility will continue to be regulated by commissions in the District of Columbia, Maryland, and Virginia, and operate under the Washington Gas brand.

    Under the terms of the transaction, WGL shareholders will receive US$88.25 in cash per WGL share, which represents a premium of 27.9% to WGL’s closing share price on 28-Nov-2016.

    WGL provides natural gas, electricity, green power and energy services, including generation, storage, transportation, distribution, supply and efficiency. With activities and assets across the US, WGL Holdings consists of Washington Gas, WGL Energy Services, WGL Energy Systems, WGL Midstream and Hampshire Gas. AltaGas is a North American diversified energy infrastructure company with a focus on natural gas, power and regulated utilities.

    The transaction is expected to close in Q2-2018.

    View WGL press release

  • Data analysis Halcon Enters into Delaware Basin, Divests Eagle Ford Assets

    Halcon Resources has entered into a Purchase and Sale Agreement with a private operator to acquire 20,748 net acres in the Southern Delaware Basin (the Pecos County Assets) for $705 million, in addition to entering into an option agreement to purchase an additional 15,040 net acres in Ward County, Texas from...

    Halcon Enters into Delaware Basin, Divests Eagle Ford AssetsData analysis
    Global Deals

    Halcon Resources has entered into a Purchase and Sale Agreement with a private operator to acquire 20,748 net acres in the Southern Delaware Basin (the Pecos County Assets) for $705 million, in addition to entering into an option agreement to purchase an additional 15,040 net acres in Ward County, Texas from a private operator for $11,000/Acre (the Ward County Option).

    Halcon has also entered into a Purchase and Sale Agreement to sell its East Texas Eagle Ford assets (El Halcon), which currently are producing approximately net 6 MBOE/d, for $500 million.

    Acquisition Highlights:

    • Attractive acquisition price of ~$20,000/Acre (Assumes $40,000 per BOE/d for current production; adjusted to exclude $55 million of midstream/infrastructure assets related to the Pecos County Assets) (assuming Ward County Option is exercised in full)
    • A significant percentage of the acreage has been de-risked by recent drilling on and around acreage
    • ~85% average working interest and ~90%+ operated
    • >70% oil and ~85% liquids
    • ~700 highly economic gross Wolfcamp A and Wolfcamp B drilling locations (750+ additional upside locations in the 1st, 2nd and 3rd Bone Spring and the Avalon Shale)
    • 12 years of Wolfcamp A and B drilling inventory assuming a 4 rig program (24+ years including upside locations)
    • Largely contiguous acreage position allows for extended lateral development (expected average lateral of >7,500’)
    • Existing infrastructure valued at approximately $55 million with significant additional value opportunities

    The acquisition of the Pecos County Assets and the sale of the El Halcon assets is expected to close by early Mar-2017.

    View Halcon press release

  • Data analysis Plains in $1.2 Billion Delaware Midstream Asset Buy

    Concho Resources and Frontier Midstream Solutions have entered into separate agreements to sell 100% of their respective ownership interests of Alpha Holding Company LLC, the owner of the Alpha Crude Connector system (ACC), to Plains All American Pipeline for a combined total of $1.2 billion.ACC, which is a...

    Plains in $1.2 Billion Delaware Midstream Asset BuyData analysis
    Headlines, Global Deals

    Concho Resources and Frontier Midstream Solutions have entered into separate agreements to sell 100% of their respective ownership interests of Alpha Holding Company LLC, the owner of the Alpha Crude Connector system (ACC), to Plains All American Pipeline for a combined total of $1.2 billion.

    ACC, which is a large-scale crude oil gathering system in the northern Delaware Basin, includes a 515-mile gathering system as well as crude oil storage facilities, truck terminals and multiple receipt points. The pipeline system became operational in late 2015, and at that time, Concho commenced a ten-year crude oil acreage dedication and transportation agreement. After the closing of this transaction, the dedication and transportation agreement, which includes the tariff structure, will remain in place.

    Concho owns 50% of the ACC joint venture with an option to purchase Frontier’s ownership interest at a predetermined multiple of invested capital. After adjusting for debt and working capital, Concho expects to receive net cash proceeds from the sale of approximately $800 million.

    Closing is expected to occur in H1-2017.

    View Concho Resources press release

  • Data analysis Targa Buys Permian Midstream Assets Worth up to $1.5 Billion

    Targa Resources has executed definitive agreements for its subsidiary, Targa Resources Partners LP, to acquire 100% of the membership interests of Outrigger Delaware Operating LLC, Outrigger Southern Delaware Operating LLC (together “Outrigger Delaware") and Outrigger Midland Operating LLC...

    Targa Buys Permian Midstream Assets Worth up to $1.5 BillionData analysis
    Headlines, Global Deals

    Targa Resources has executed definitive agreements for its subsidiary, Targa Resources Partners LP, to acquire 100% of the membership interests of Outrigger Delaware Operating LLC, Outrigger Southern Delaware Operating LLC (together “Outrigger Delaware") and Outrigger Midland Operating LLC (“Outrigger Midland" and together with "Outrigger Delaware", "Outrigger Permian"). Targa will pay initial cash consideration of $565 million for the membership interests.

    The Outrigger Delaware gas gathering and processing and crude gathering assets are located in Loving, Winkler and Ward counties. Outrigger Delaware assets include 70 MMcf/d of processing capacity. Targa plans to connect the Outrigger Delaware assets to Targa's existing Sand Hills system, extending Targa's premier Permian Basin footprint across the Delaware and Midland Basins. Currently, there is 40 Mbbl/d of crude gathering capacity on the Outrigger Delaware system.

    The Outrigger Midland gas gathering and processing and crude gathering assets are located in Howard, Martin and Borden counties. Outrigger Midland currently has 10 MMcf/d of processing capacity, and Targa expects to connect the Outrigger Midland assets to Targa's WestTX system in Martin County. Currently, there is also 40 Mbbl/d of crude gathering capacity on the Outrigger Midland system.

    Subject to certain performance-linked measures based on existing contracts expected at close and other conditions, additional cash of up to $935 million may be received in 2018 and 2019 by the sellers of Outrigger Permian in potential earn-out payments based on realized gross margin. The total potential consideration that could be paid to sellers is up to a maximum of $1.5 billion, which includes the initial consideration of $565 million.

    The transaction is expected to close in Q1-2017.

    View Targa press release

    On 25-Jan-2017, the seller is identified to be Outrigger Energy LLC.

    View Outrigger Energy LLC press release

  • Data analysis ExxonMobil Acquires Permian Assets for $5.6 Billion

    ExxonMobil has acquired companies owned by the Bass family of Fort Worth, Texas, with an estimated resource of 3.4 BBOE in New Mexico’s Delaware Basin. ExxonMobil will make an upfront payment of $5.6 billion in ExxonMobil shares, and a series of additional contingent cash payments totaling up to $1...

    ExxonMobil Acquires Permian Assets for $5.6 BillionData analysis
    Headlines, Global Deals

    ExxonMobil has acquired companies owned by the Bass family of Fort Worth, Texas, with an estimated resource of 3.4 BBOE in New Mexico’s Delaware Basin. ExxonMobil will make an upfront payment of $5.6 billion in ExxonMobil shares, and a series of additional contingent cash payments totaling up to $1 billion, to be paid beginning in 2020 and ending no later than 2032 commensurate with the development of the resource.

    The acquired companies, which include the operating entity BOPCO, hold about 275,000 acres of leasehold, and production of more than net 18 MBOE/d (70% liquids). This includes about 250,000 acres of leasehold in the Permian Basin, the bulk of that in contiguous, held-by-production units in the New Mexico Delaware Basin, with more than 60 BBOE estimated in place. The companies also hold producing acreage in other areas in the United States.

    View ExxonMobil press release

  • Data analysis Tullow Makes Oil Discovery at Erut-1 Well, Kenya

    Tullow Oil has discovered oil at Erut-1 well in Block 13T, Northern Kenya.The well, drilled by the PR Marriott Rig-46 to a final depth of 1,317m, encountered a gross oil interval of 55m with 25m of net oil pay at a depth of 700m. The overall oil column for the field is considered to be 100-125m.The objective...

    Tullow Makes Oil Discovery at Erut-1 Well, KenyaData analysis
    Exploration

    Tullow Oil has discovered oil at Erut-1 well in Block 13T, Northern Kenya.

    The well, drilled by the PR Marriott Rig-46 to a final depth of 1,317m, encountered a gross oil interval of 55m with 25m of net oil pay at a depth of 700m. The overall oil column for the field is considered to be 100-125m.

    The objective of the well was to test a structural trap at the northern limit of the South Lokichar basin. Fluid samples taken and wireline logging all indicate the presence of recoverable oil. Erut-1 successfully shows that oil has migrated to the northern limit of the South Lokichar basin and has de-risked multiple prospects in this area.

    Ownership of Block 13T: Tullow Oil (50%, operator), Africa Oil Corporation (25%) and Maersk Oil (25%).

    View Tullow press release

  • Statoil Makes Discovery at Cape Vulture Well, Norwegian SeaData analysis
    Exploration

    Statoil has discovered oil and gas at Cape Vulture exploration well in the license 128, located north-west of Norne discovery, Norwegian Sea. Recoverable reserves are initially estimated at between 20-80 MMBOE.

    Ownership of license 128: Statoil (64%, operator), Petoro (24.5%) and ENI (11.5%).

    View Statoil press release

  • Data analysis Noble Energy to Acquire Clayton Williams for $3.2 Billion

    Noble Energy and Clayton Williams Energy have executed a definitive agreement under which Noble Energy will acquire all of the outstanding common stock of Clayton Williams Energy.Clayton Williams Energy shareholders will receive 2.7874 shares of Noble Energy common stock and $34.75 in cash for each share of...

    Noble Energy to Acquire Clayton Williams for $3.2 BillionData analysis
    Headlines, Global Deals

    Noble Energy and Clayton Williams Energy have executed a definitive agreement under which Noble Energy will acquire all of the outstanding common stock of Clayton Williams Energy.

    Clayton Williams Energy shareholders will receive 2.7874 shares of Noble Energy common stock and $34.75 in cash for each share of common stock held. In the aggregate, this totals 55 million shares of Noble Energy stock and $665 million in cash. The value of the transaction, based on Noble Energy's closing stock price as of 13-Jan-2017, is approximately $139 per Clayton Williams Energy share, or $3.2 billion in the aggregate, including the assumption of approximately $500 million in net debt. The per share consideration represents a 21% premium to the average closing share price of Clayton Williams Energy over the past 30 days, and a 34% premium to the price on 13-Jan-2017, the last day of trading prior to the transaction.

    Acquisition Highlights:

    • 71,000 highly contiguous net acres in the core of the Southern Delaware Basin in Reeves and Ward counties in Texas (directly adjacent to Noble Energy's existing 47,200 net acres). In addition, there are an additional 100,000 net acres in other areas of the Permian Basin
    • 80% average working interest in the Southern Delaware position, with more than 95% of the acreage operated
    • 2,400 Delaware Basin gross drilling locations identified, targeting the Upper and Lower Wolfcamp A zones, along with the Wolfcamp B and C. The average lateral length of the future locations is 8,000 ft
    • Total estimated net unrisked resource potential on the acreage of over 1 BBOE in the Wolfcamp zones, with significant upside potential in other zones
    • Noble Energy's outlook is to increase production on the acquired assets from 10 MBOE/d currently (70% oil) to approximately 60 MBOE/d in 2020 in the Company's base plan
    • Highly competitive economics, with Wolfcamp A wells (estimated ultimate recovery of 1.0 MMBOE for a 7,500 ft lateral) generating approximately 60% to 90% before-tax rate of return at base and upside plan pricing, respectively
    • The acquired Delaware Basin acreage is largely undedicated to third-party oil and gas gathering and water systems, and approximately 12,500 acres are dedicated from a third-party operator
    • Existing midstream Delaware Basin assets include over 300 miles of oil, natural gas, and produced water gathering pipelines (over 100 miles for each product)

    The transaction is expected to close in Q2-2017.

    View Noble press release

  • Data analysis ExxonMobil Makes Discovery at Payara-1 Well, Off Guyana

    ExxonMobil, through its affiliate Esso Exploration and Production Guyana Limited, has made a discovery at Payara-1 well, located on the Stabroek Block, approximately 16 km north-west of the Liza discovery, offshore Guyana.The well, drilled to a depth of 18,080 ft (5,512m) in 6,660 ft (2,030m) of water,...

    ExxonMobil Makes Discovery at Payara-1 Well, Off GuyanaData analysis
    Exploration

    ExxonMobil, through its affiliate Esso Exploration and Production Guyana Limited, has made a discovery at Payara-1 well, located on the Stabroek Block, approximately 16 km north-west of the Liza discovery, offshore Guyana.

    The well, drilled to a depth of 18,080 ft (5,512m) in 6,660 ft (2,030m) of water, encountered more than 95 ft (29m) of high-quality, oil-bearing sandstone reservoirs.

    Ownership of Stabroek Block: ExxonMobil (Esso Exploration and Production Guyana Limited) (45%, operator), Hess (30%), and CNOOC Nexen Petroleum (25%).

    View Hess press release

  • Data analysis WPX Energy in $775 Million Delaware Basin Assets Buy

    WPX Energy has agreed to acquire Delaware Basin assets from Panther Energy Company II LLC and Carrier Energy Partners LLC for $775 million.The acquisition includes approximately 6.5 MBOE/d (55% oil) of existing production from 23 producing wells (17 horizontals), two drilled but uncompleted horizontal...

    WPX Energy in $775 Million Delaware Basin Assets BuyData analysis
    Global Deals

    WPX Energy has agreed to acquire Delaware Basin assets from Panther Energy Company II LLC and Carrier Energy Partners LLC for $775 million.

    The acquisition includes approximately 6.5 MBOE/d (55% oil) of existing production from 23 producing wells (17 horizontals), two drilled but uncompleted horizontal laterals, 18,100 net acres in Reeves, Loving, Ward and Winkler counties in Texas and 920 gross undeveloped locations in the geologic sweet spot of the Delaware Basin.

    Acquisition Highlights:

    • Projected IRR on wells ranging from 55%-95% at current strip pricing
    • Estimated acreage cost excluding flowing production is ~$28,500 per acre
    • Transaction valued primarily on three zones with upside in five additional zones
    • EUR’s of ~1.0 MMBOE for Wolfcamp A and X/Y 1-mile laterals (55% oil)
    • Increases WPX’s total gross drillable Delaware locations from ~5,500 to ~6,400
    • New drillable locations include more than 150 long laterals (1.5-2 miles)
    • Increases WPX’s growth trajectory for 2017-2020
    • Offset operators: RSP Permian, Anadarko, Shell, Matador, Cimarex, Concho and Centennial

    View WPX Energy press release

  • Data analysis Anadarko Divests Eagle Ford Assets for $2.3 Billion

    Anadarko Petroleum has agreed to sell its Eagle Ford Shale assets in South Texas for approximately $2.3 billion to Sanchez Energy Corporation and Blackstone Group LP.The divestiture includes approximately 155,000 net acres primarily located in Dimmit and Webb counties. At the end of Q4-2016, sales volumes...

    Anadarko Divests Eagle Ford Assets for $2.3 BillionData analysis
    Headlines, Global Deals

    Anadarko Petroleum has agreed to sell its Eagle Ford Shale assets in South Texas for approximately $2.3 billion to Sanchez Energy Corporation and Blackstone Group LP.

    The divestiture includes approximately 155,000 net acres primarily located in Dimmit and Webb counties. At the end of Q4-2016, sales volumes from these properties totaled approximately 45 Mbbl/d and approximately 131 MMcf/d of natural gas.

    Anadarko's sponsored master limited partnership, Western Gas Partners LP, will continue to own and operate its midstream assets in South Texas and is expected to benefit from drilling commitments made by the buyers in conjunction with this transaction.

    The transaction is expected to close in Q1-2017.

    View Anadarko press release

  • Parsley Acquires Midland Basin And Delaware Basin AssetsData analysis
    Global Deals

    Parsley Energy has entered into agreements to acquire, in unrelated transactions, certain undeveloped acreage and producing oil and gas properties located adjacent to the company's existing operating areas in the Midland and Southern Delaware Basins for an aggregate purchase price of $607 million in cash. Parsley Energy has also acquired certain mineral interests in the Southern Delaware Basin for an aggregate purchase price of $43 million.

    Acquisition Highlights:

    • Approximately 23,000 net leasehold acres
    • Estimated current net production of approximately 2.3 MBOE/d
    • Approximately 340 net horizontal drilling locations in primary target intervals (Wolfcamp A, Wolfcamp B, Lower Spraberry, and Bone Spring formations)
    • Approximately 660 net royalty acres

    Midland Basin acquired assets:

    • Approximately 25,200 gross/17,800 net leasehold acres in Upton, Reagan, Glasscock, and Midland Counties, TX for approximately $402 million
    • Estimated current net production of approximately 1.2 MBOE/d
    • Approximately 230 net horizontal drilling locations in the Wolfcamp A, Wolfcamp B, and Lower Spraberry target intervals, with additional locations in less developed intervals and potential upside from tighter spacing and additional flow units in primary target intervals
    • Those transactions not yet closed are scheduled to close on or before 27-Feb-2017

    Southern Delaware Basin acquired assets:

    • Approximately 6,600 gross/5,200 net acres in Reeves, Pecos, and Ward Counties, TX for approximately $205 million
    • Estimated current net production of approximately 1.1 MBOE/d
    • Approximately 110 net horizontal drilling locations in the upper Wolfcamp and 2nd and 3rd Bone Spring target intervals, with potential upside from tighter spacing and additional target intervals
    • Mineral rights translating to a 17% average royalty interest in approximately 3,900 net acres, or approximately 660 net royalty acres, in Reeves and Pecos Counties, TX for approximately $43 million
    • Those transactions not yet closed are scheduled to close on or before 31-Jan-2017

    View Parsley press release

  • Data analysis Total Buys 21.57% Stake in Uganda Lake Albert Oil Project

    Total and Tullow have entered into a package agreement under which Total will acquire an additional 21.57% interest from Tullow in the Uganda Lake Albert oil project for $900 million.The purchase consideration of $900 million to be paid by Total to Tullow represents a reimbursement of a portion of past costs,...

    Total Buys 21.57% Stake in Uganda Lake Albert Oil ProjectData analysis
    Global Deals

    Total and Tullow have entered into a package agreement under which Total will acquire an additional 21.57% interest from Tullow in the Uganda Lake Albert oil project for $900 million.

    The purchase consideration of $900 million to be paid by Total to Tullow represents a reimbursement of a portion of past costs, payable in installments along the development of the project, with an initial payment of $100 million at closing.

    Following this transaction, Total will hold a 54.9% interest in the Uganda Lake Albert oil project. Under the terms of the deal, Total will acquire 21.57% out of Tullow’s existing 33.33% stake in all of the Lake Albert project licenses EA1, EA1A, EA2 and EA3A. Total, which is already operator of licenses EA1 and EA1A, will in addition take over operatorship from Tullow of license EA2.  

    View Total press release

  • Data analysis DCP Midstream LLC Merges with DCP Midstream Partners

    DCP Midstream LLC, a 50/50 joint venture between Phillips 66 and Spectra Energy (Owners), and DCP Midstream Partners LP (DPM) have signed and closed a transaction combining all of the assets and debt of DCP Midstream with DPM. The combined company, with a pro-forma enterprise value of approximately $11...

    DCP Midstream LLC Merges with DCP Midstream PartnersData analysis
    Headlines, Global Deals

    DCP Midstream LLC, a 50/50 joint venture between Phillips 66 and Spectra Energy (Owners), and DCP Midstream Partners LP (DPM) have signed and closed a transaction combining all of the assets and debt of DCP Midstream with DPM. The combined company, with a pro-forma enterprise value of approximately $11 billion, will be renamed DCP Midstream LP.

    Under terms of the transaction, DCP Midstream has contributed subsidiaries owning all of its assets to DPM, plus $424 million of cash, in exchange for approximately 31.1 million DPM units ($1.125 billion) and DPM assuming $3.15 billion of DCP Midstream debt. The Owners have retained their 50/50 joint ownership of DCP Midstream LLC, which owns 38% of the outstanding DPM general and limited partner units. The transaction will increase Phillips 66 and Spectra Energy’s ownership in DPM to 38%.

    The combination brings together DPM’s existing assets with DCP Midstream’s premier assets in the Delaware and Permian basins, the DJ Basin and the Midcontinent, as well as an additional one-third interest in both Sand Hills and Southern Hills NGL pipelines.

    View DCP Midstream Partners press release

  • Data analysis SM Energy Sells Eagle Ford Assets for $800 Million

    SM Energy has entered into a definitive agreement with a subsidiary of Venado Oil and Gas LLC, an affiliate of KKR, for the sale of the SM Energy’s third party operated assets in the Eagle Ford, including its ownership interest in related midstream assets, for a purchase price of $800 million.The assets...

    SM Energy Sells Eagle Ford Assets for $800 MillionData analysis
    Global Deals

    SM Energy has entered into a definitive agreement with a subsidiary of Venado Oil and Gas LLC, an affiliate of KKR, for the sale of the SM Energy’s third party operated assets in the Eagle Ford, including its ownership interest in related midstream assets, for a purchase price of $800 million.

    The assets expected to be sold include approximately 37,500 net acres in the Maverick Basin/Eagle Ford area of south Texas and a 12.5% interest in the Springfield Gathering System. As of year-end 2015, net proved reserves associated with these assets were 65 MMBOE (38% oil, 31% natural gas and 31% NGLs). In Q3-2016, these assets produced approximately net 27.3 MBOE/d (33% oil, 33% natural gas and 34% NGLs). The transaction is expected to close in Q1-2017, with an effective date of 1-Nov-2016.

    View SM Energy press release

  • Data analysis Shell Drills Two Dusters, Off Tanzania

    Shell has concluded the drilling of two exploration wells, Kitatange-1 in Block 1 and Bunju-1 in Block 4, offshore Tanzania. After evaluation, Shell has confirmed that good quality reservoir was encountered in both wells, however hydrocarbons were not found.The two wells fulfill the final exploration...

    Shell Drills Two Dusters, Off TanzaniaData analysis
    Exploration

    Shell has concluded the drilling of two exploration wells, Kitatange-1 in Block 1 and Bunju-1 in Block 4, offshore Tanzania. After evaluation, Shell has confirmed that good quality reservoir was encountered in both wells, however hydrocarbons were not found.

    The two wells fulfill the final exploration commitments as per the exploration licences issued by the Ministry of Energy and Minerals (MEM).

    View Ophir press release

    Ownership of Block 1 and Block 4: Shell (60%, operator), Ophir (20%) and Pavilion (20%).

  • Data analysis Oil Search Makes Discovery at Muruk-1 Well, PNG

    Oil Search has discovered hydrocarbons at Muruk-1 well in PPL 402, Papua New Guinea.The well was drilled to a total depth of 3,130m, and had encountered gas and condensate within the primary target Toro formation.Ownership of PPL 402: Oil Search (37.5%, operator), ExxonMobil affiliate (42.5%) and Santos...

    Oil Search Makes Discovery at Muruk-1 Well, PNGData analysis
    Exploration

    Oil Search has discovered hydrocarbons at Muruk-1 well in PPL 402, Papua New Guinea.

    The well was drilled to a total depth of 3,130m, and had encountered gas and condensate within the primary target Toro formation.

    Ownership of PPL 402: Oil Search (37.5%, operator), ExxonMobil affiliate (42.5%) and Santos (20%).

    View Santos press release

  • Data analysis Woolworths to Sell Fuel Business for $1.3 Billion

    Woolworths Limited has entered into binding agreements to facilitate the sale of its 527 Woolworths-owned fuel convenience sites and 16 committed development sites (Fuel Business) to BP for A$1.8 billion (US$1.3 billion).The completion is expected to occur no earlier than 2-Jan-2018.View Woolworths press...

    Woolworths to Sell Fuel Business for $1.3 BillionData analysis
    Headlines, Global Deals

    Woolworths Limited has entered into binding agreements to facilitate the sale of its 527 Woolworths-owned fuel convenience sites and 16 committed development sites (Fuel Business) to BP for A$1.8 billion (US$1.3 billion).

    The completion is expected to occur no earlier than 2-Jan-2018.

    View Woolworths press release

  • Data analysis Total Buys Upstream and Downstream Assets from Petrobras

    Total and Petrobras signed today an Assets Package Agreement which reinforces the joint partnership and cooperation between the two companies, in the upstream and downstream sectors, covering operations, research and technology.Total will become partner to Petrobras in two high-quality pre-salt licenses of...

    Total Buys Upstream and Downstream Assets from PetrobrasData analysis
    Headlines, Global Deals

    Total and Petrobras signed today an Assets Package Agreement which reinforces the joint partnership and cooperation between the two companies, in the upstream and downstream sectors, covering operations, research and technology.

    Total will become partner to Petrobras in two high-quality pre-salt licenses of the prolific Santos basin: the BMS-11 with the Lara fields currently under development where Total will acquire a 22.5% interest from Petrobras, and in the BMS-9 with the Lapa field, where Total will become the operator of the license with the acquisition of a 35% interest from Petrobras. Total will also offer to Petrobras the option of taking a 20% stake in the Perdido Belt deep-water exploration Block 2 recently awarded in Mexico.

    Total will acquire from Petrobras some regasification capacity in the Bahia LNG terminal and a 50% interest in two co-generation plants located in the Bahia area as well as pipeline transport capacity.

    Under the terms of this assets package deal, the acquisition of the upstream and downstream interests in Brazil from Petrobras will represent a global value of around $2.2 billion dollars, made of cash, carry and contingent payments.

    View Total press release