Mergers and Acquisitions
- Singapore’s Temasek Holdings bought 5% of Repsol for USD 1.35 billion. Repsol also agreed to sell most of its liquefied natural gas (LNG) assets to Royal Dutch Shell for USD 4.4 billion plus assumption of USD 2.3 billion in debt. The Spanish company is divesting assets after its credit rating was hurt by the nationalization of YPF’s Argentine assets last year.
- ExxonMobil Canada bought Celtic Exploration for USD 3.1 billion. The transaction gives ExxonMobil control of about 221,000 hectares of natural gas liquids acreage in the Montney formation of British Columbia, and 42,000 hectares in the Duvernay shale of Alberta. Imperial Oil, of which ExxonMobil owns 70%, will exercise an option to invest USD 1.55 billion for a 50% stake in Celtic.
- Chinese National Offshore Oil Company (CNOOC) bought Nexen for USD 15.1 billion. Nexen will operate as a wholly owned subsidiary of CNOOC. The deal required approval from the governments of Canada, the UK, the European Union, China, and the United States. CNOOC said it will keep Nexen’s UK assets and operations in the Gulf of Mexico and offshore Nigeria.
- Sinopec is buying 50% (425,000 net acres) of Chesapeake Energy’s net oil and natural gas leasehold in the Mississippi Lime play of north Oklahoma for USD 1.02 billion. Prior to the transaction, these assets net to Chesapeake’s interest produced 34,000 BOED in the fourth quarter of 2012 from 140 million BOE of net proved reserves.
- Linn Energy and LinnCo bought Berry Petroleum for USD 4.3 billion. The transaction adds assets in California, the US Permian Basin, east Texas, the US Rocky Mountain region, and the Uinta Basin to Linn’s portfolio. The assets involve production of about 240 MMcf/D and proved reserves of 1.65 Tcf.
- Exco Resources sold stakes in its conventional oil and gas assets in west Texas, east Texas, and north Louisiana to Harbinger Group (HGI) for USD 725 million. The transactions remove these assets from the joint venture arrangement between Exco and BG Group. Ownership now comprises HGI (74.5%) and Exco (25.5%).
- Hercules Offshore bought the Ben Avon offshore drilling rig from a KCA Deutag subsidiary for USD 55 million. The rig is a LeTourneau class 822 SD-C, self-elevating rig registered and flagged in Panama. The company also contracted with Cabinda Gulf Oil for the use of the rig, involving a forward-looking revenue value of USD 119 million.
- BHP Billiton Petroleum is building a new global headquarters in Houston. The planned 30-story tower will have 560,000 rentable ft2, and will consolidate the company’s employees, which are currently located in Houston and Tulsa, Oklahoma.
- Unimin opened a proppant distribution terminal in Navarre, Ohio. The terminal is accessible by vehicles and three railroads and will serve hydraulic fracturing operations in the Utica shale formation.
- Cameron began operations at its centrifugal compression facility at the Gaomi manufacturing and repair center in China’s Shandong province. The 9662‑m2 facility is equipped with balancing machines, numerical control machine tools, and testing capabilities.
- Pacific Drilling borrowed USD 1 billion to build the Pacific Sharay and Pacific Meltem ultradeepwater drillships. The vessels are the sixth and seventh drillships in the company’s fleet.
- Perisai awarded a USD-208-million contract to Sembcorp Marine subsidiary PPL Shipyard to build a second Pacific Class 400 jackup rig. The rig is due in 2015 and will be capable of operating in 400-ft waters and drilling high-pressure/high- temperature wells up to 30,000 ft.
- Keppel Offshore and Marine received three contracts totaling USD 300 million that include construction of a KFELS B Class jackup rig for D.P. Jindal Group’s Star Drilling of Singapore. The other two contracts involve the upgrading of the ENSCO 5006 semisubmersible for Ensco’s operations at Australia’s INPEX Ichthys project, and the upgrading of Diamond Offshore’s Ocean Patriot semisubmersible for Shell’s work at the North Sea’s Fram field.
- Seadrill exercised fixed-price options for the construction of two high‑specification jackup drilling rigs at Dalian Shipbuilding Industry Offshore, China, for USD 230 million. The new units will be based on the F&G JU200E design, with water depth capacity of 400 ft and drilling depth of 30,000 ft. Seadrill now has six jackups under construction at Dalian.
- Petrovietnam and Eni have agreed to conduct a joint assessment of the unconventional resource potential in Vietnam. Eni began operating in Vietnam last year through a 50% operating interest in three exploration blocks in the Gulf of Tonkin’s Song Hong basin, which is estimated to contain 10% of the country’s oil and gas resources.
- Gazprom and Levant LNG Marketing signed an agreement in which Gazprom will market LNG from Israel’s Tamar gas project for 20 years beginning in 2017.
- GE Oil & Gas took a 16-year service contract extension valued at USD 333 million for the Sakhalin-2 integrated oil and gas project on Sakhalin Island. The current service agreement was scheduled to end in 2016.
- Talisman Energy awarded a USD‑285-million contract to Subsea 7 for construction work at the Montrose Area Redevelopment Project in the North Sea. Engineering and project management begin immediately, and offshore activities are due to commence in 2014.