TOPICS OF INTEREST
ASSET/PORTFOLIO MANAGEMENT
Whiting Bankruptcy Opens a New Frontier for Executive Payouts
Golden parachutes typically pay executives big money if they are fired without cause. Whiting Petroleum executives found a way to collect theirs for staying on board after the company they led filed for bankruptcy.
Spending Cuts First, Job Cuts Are Next
Oil exploration and production jobs globally are at about the level they were after deep cuts following the 2014 crash. Now companies need to find more to cut.
Chevron Hits the Brakes on Permian, Cuts $8 Billion Across Company
The international major has lowered its output forecast in the world’s most prolific unconventional basin by 20%.
Industry Faces Long Road to Recovery
Leaders of Rystad Energy went online recently to talk about the effects of the coronavirus pandemic on the oil and gas industry, and the prognosis isn’t good.
Global Upstream Industry Moves Into Survival Mode
As the fallout deepens from the coronavirus pandemic and the global collapse in oil and gas prices, oil- and gas-producing regions around the world are feeling the pain.
Interest in US Gulf Lease Sale Sapped by Price Crash
Oil and gas operators played it safe in the latest offshore auction by placing about half the high bids typically made. As a result, the total dollar commitment for the round was the lowest since 2017.
BP Aims for Net-Zero Emissions, Oxy To End Flaring
BP says it is firmly committed to achieving the ambitious target of net-zero greenhouse gas emissions over the next 30 years—even if that means producing less oil and gas.
Lundin Petroleum Joins Decarbonization Movement With a Name Change
The Swedish oil and gas producer is aiming to produce 200,000 B/D while offsetting the entirety of its carbon footprint.
Report: BP Pulling Out of Iraq Field
The withdrawal comes at a time of increasing tension between the US and Iraq, which makes investment in the country riskier.
Talos Shares Zama Reserves Audit Amid Unitization Negotiations With Pemex
Talos is hoping to retain its operatorship of the major discovery it made in 2017 offshore Mexico after a reserves audit confirmed the reservoir is shared between two offshore blocks.
Discovery Suggests Guyana Bounty Extends Offshore Suriname
A significant discovery of oil off Suriname increases the odds that major oilfields off Guyana will extend across that international boundary.
BP Makes $625 Million Exit From North Sea Assets
The deal is part of BP’s plan to divest $10 billion in the North Sea so that it can focus on developing core growth areas and construct more cost-effective subsea tiebacks in the region.
US Shale: All Signs Point to Further Consolidation
As capital markets dry up and shale producers look for pathways to growth, oil and gas data analytics firm Enverus predicts the US sector will see a “surge” in mergers and acquisitions in 2020.
Devon Sells Barnett Asset to Thai Venture Firm for $770 Million
Devon exits the asset that served as the company’s cornerstone for almost two decades and is known to the world as the birthplace of the shale revolution.
Total to Gain Blocks, Extend Production Licenses Offshore Angola
Total has agreed to acquire interests in two blocks in the offshore Kwanza Basin from Angola’s state-owned Sonangol and has received an extension on its offshore Block 17 production licenses.
Basic Energy Services to Leave Pressure Pumping Business
The company said it will avoid the pumping business's “structurally disadvantaged position” and instead focus on well servicing and water logistics.
Weatherford Emerges from Chapter 11, Eliminates $6.2 Billion in Debt
The company also secured $2.6 billion in exit financing facilities, including a $450-million revolving credit facility, as well as a $195-million letter of credit facility and more than $900 million of liquidity.
WPX Buys Private Permian Player Felix Energy for $2.5 Billion
The latest move to consolidate the US shale sector will add 1,500 drilling locations to the buyer's portfolio. It also reflects that all-stock or mostly-stock deals are now the sector’s preferred acquisition vehicle.
Shale, Tight Oil Investments to Fall 12% in 2020; Global Deepwater Rising
Lower oil prices and capital discipline are expected to result in a double-digit drop in shale and tight oil spending, while deepwater momentum is seen continuing. This comes as “massive investments” will be needed in the next decade to meet growing oil demand.
Total Officially Enters Libya’s Waha Concessions
Total will invest $650 million in the development of two main projects, North Gialo and NC 98, resulting in a 180,000-B/D increase in production.
Devon Teams with Dow to Develop STACK Acreage
Under the agreement, the Oklahoma City independent will monetize half of its working interest in 133 undrilled locations in the form of a $100-million drilling carry during the next 4 years.
Pemex Makes 500 Million Barrel Discovery
The Quesqui field is expected to be the biggest onshore find in Mexico since 1987.
Colombia Awards 14 Onshore Blocks
Calgary-based Colombia producers Canacol Energy and Parex Resources led all firms by gaining three blocks each, with one more counteroffer from Parex pending review.
Repsol Becomes First Oil Company To Aim For Net-Zero Emissions By 2050
The Spanish oil and gas company says existing or foreseeable technologies will achieve at least 70% of its ambitious plan to shrink its carbon footprint.
PRMS Classifications: Updated Methodology for Resource Inventory Management
This paper presents a methodology that provides the upstream industry with a robust approach to petroleum inventory management.
SPE Talks To: Kirstie Boyle
Business Development VP Kirstie Boyle joins The SPE Podcast to talk startups. Recently part of a $4.5-million funding round, Kirstie shares what makes Interface Fluidics flow.
ADNOC Launches Rig Fleet Expansion Program
ADNOC’s drilling subsidiary has increased its rig fleet to 95 and plans to add “dozens” more by 2025.
Chesapeake CEO Expresses Confidence in Company’s Financial Stability
The long-struggling shale operator’s share price on 12 November closed at 67¢/share, a 25-year low.
Oxy Advances Post-Merger Divestment Program
Occidental Petroleum has closed on deals totaling $1.7 billion as part of its divestment program following its $38-billion takeover of Anadarko Petroleum.
Another Brazilian Auction Fails To Draw Bids from Majors
Chinese firms stepped in for the majors in Brazil’s two underwhelming offshore auctions.
Equinor Exits Eagle Ford JV
Spain’s Repsol will assume 100% interest in and operatorship of the joint venture as Equinor leaves the 9-year partnership.
Petrobras Awarded Búzios, Itapu Blocks in Brazilian Auction
Just three firms submitted bids in an auction many are deeming as a disappointment for Brazil.
Chevron to Sell Stake in Azerbaijan’s Giant ACG Field
The US major has had a stake in the field since it started production in 1997. It produced 584,000 B/D of oil last year.
Oilfield Service Firms Branch Out Past Oil and Gas
Service firms are diversifying their portfolios, in part driven by large-scale budget cuts among operators since the industrywide downturn.
US Could Make Hundreds of Millions More from Offshore Leasing, GAO Says
GAO believes BOEM often undervalues its tracts offered to operators in offshore lease sales.
Newly Merged C&J Energy, Keane To Become NexTier Oilfield Solutions
Expected to close 31 October, the deal will create one of the largest pressure pumpers in the US.
Schlumberger, Halliburton Mull New North American Land Strategies
The two largest oilfield services firms grapple with a worsening North American land market.
Weatherford Prepares for Difficult Services Market into Early 2020s
The company, which filed for Chapter 11 protection in June, revised downward its revenue projections amid lower expectations for the US oilfield services market and oil prices.
Neptune Energy to Buy Edison E&P’s North Sea Assets
The deal is contingent on Energean Oil and Gas completing its acquisition of Edison E&P, announced in July.
More Permian Consolidation: Parsley Energy To Buy Jagged Peak
The move will bolster Austin-based Parsley’s holdings in the Delaware Basin, giving it a contiguous 120,000 net acres opposite of its original Midland Basin focus area.
Chevron, Repsol Awarded Most Blocks in Brazil’s 16th Round
The round included a near-$1 billion signature bonus on a Campos Basin block awarded to a Total-led consortium.
BP Adds, Shell Subtracts Oil and Gas Resources
Heavy deal-making since 2015 by the two majors has resulted in very different upstream portfolios.
EP Energy Seeks Chapter 11 Protection
EP Energy is now one of at least 200 North American exploration and production companies to have filed for bankruptcy since 2015.
Enverus: Third-Quarter US Operator M&A Activity Surpassed $17 Billion
The current M&A market is characterized by an increase in private capital, geographical diversity, and a variety of transaction types, including joint ventures and royalty deals.
Louisiana Austin Chalk: Hundreds of Millions Down the Drain?
ConocoPhillips has pulled out of the much-hyped Louisiana Austin Chalk play after the company’s test wells yielded a gusher of water. Meanwhile, an Australian operator flying under the radar continues to pursue the adjacent-but-even-more-challenging Tuscaloosa Marine Shale.
North Sea Still a Big Part of Total’s Future
Recent exploration success in the North Sea has motivated Total to invest some $10 billion in the basin over the next 5 years.
BP To Sell Alaska Business to Hilcorp
The $5.6-billion deal includes the Prudhoe Bay field and the Trans Alaska Pipeline and vaults Hilcorp to be the second-largest Alaska producer and reserves holder, behind only ConocoPhillips.
PDC Energy and SRC Energy Merge in Latest Shale Deal
The shale sector is making moves to consolidate amid investor pressure to increase cash flow. This deal will form the second-largest producer in Colorado’s DJ Basin.
Equinor, YPF To Explore Block Offshore Argentina
The firms are now partners on multiple blocks in the North Argentina Basin.
BHP, Anadarko Among Leaders in Latest US Gulf Lease Sale
Australia’s BHP Billiton and the recently acquired Anadarko Petroleum submitted the largest dollar totals of high bids in US Gulf of Mexico Lease Sale 253.
The Shale Bankruptcies Continue
Times are still financially tough for many shale operators: Sanchez Energy and Halcón Resources become the latest to file for Chapter 11 protection.
Anadarko’s Digital Legacy Offers a Template for Others
The large independent put together a team of data scientists, software developers, and petrotechnical staff to create a forward-looking vision for how to use digital technology to solve problems.
Oxy Acquisition of Anadarko Is Complete
The biggest merger in the oil and gas industry in 3 years has become official, making Oxy the largest holder of land in both the Permian Basin and DJ Basin.
Shale Consolidation: Callon Acquiring Carrizo in $3.2 Billion Stock Deal
The combined company will produce more than 100,000 BOE/D from the Permian Basin and Eagle Ford Shale and is switching its focus to “mega-pad” developments.
W&T Offshore To Acquire ExxonMobil’s Assets Off Alabama
The deal consists of stakes in nine shallow-water producing fields covering 108,000 gross acres in 10–50 m of water.
Comstock Resources to Buy Covey Park, Triple Haynesville-Bossier Position
The combination will create one of the Haynesville Shale’s top gas producers, tripling Comstock’s Haynesville-Bossier acreage.
Thirty Firms Awarded Blocks in UK’s 31st Offshore Licensing Round
The round marked a continuation of a recent trend on the UKCS in which lesser-known firms and newcomers have gained stature, replacing more-familiar, bigger operators that have pared down their North Sea positions.
Malaysia’s Petronas is Looking Near and Far for Gas and Oil
The state-owned firm is looking within its home country, around Southeast Asia, and to the Americas—including shale—in an effort to maintain its forecast average yearly production of 1.7 million BOE/D over the next 5 years.
Murphy Oil to Buy Deepwater US Gulf Assets for up to $1.625 Billion
The El Dorado, Arkansas-based Murphy has quickly found a home for some of the cash it will receive from the sale of its Malaysia business. The company has been rapidly expanding its US gulf footprint while simplifying its portfolio and targeting more oil.
Canadian Oil Business Gets More Canadian as Devon Exits
Devon Energy and its debt gets smaller, as Canadian Natural Resources adds to its huge, long-term bet on Canadian heavy and ultra-heavy crude.
Weatherford Plans Chapter 11 Restructuring
Weatherford said it will file for bankruptcy after reaching a deal with its biggest lenders to halve its debt load and provide financing during and after the process.
Chevron No Longer Pursuing Anadarko
Oxy has won the fight for Anadarko. Citing capital discipline as the reason, Chevron has elected not to make another bid for the independent.
Anadarko Accepts Oxy's Revised Takeover Offer
Anadarko Petroleum now plans to exit its agreement with Chevron after deeming Occidental Petroleum's revised takeover bid "superior."
Operator Executives Share Haynesville Development Strategies
Indigo Natural Resources, Aethon Energy, and Rockcliff Energy are among the most active operators in the revived Haynesville Shale of North Louisiana and East Texas. And most people outside of the region likely have never heard of them.
Machine Learning Optimizes Duvernay Shale-Well Performance
This paper discusses how machine learning by use of multiple linear regression and a neural network was used to optimize completions and well designs in the Duvernay shale.
Schlumberger to Sell its Middle East Drilling Business to Saudi Arabia’s TAQA
The deal will bolster Arabian Drilling Company’s fleet to 67 rigs across the Middle East and North Africa.
Spain’s Repsol, LLOG to Partner on Deepwater US Gulf Developments
The pact, which builds on the firms’ current partnership on the Buckskin project, covers four Keathley Canyon blocks including the Leon and Moccasin discoveries.
Shale Oil Focus Shifts to Cash Flow, Squeezing Growth and Small Players
In the shale oil business, cash flow is a life or death issue. For smaller players, money from investors and lenders is getting harder to find.
Oxy Makes $38-Billion Bid for Anadarko in Hopes of Beating Out Chevron
Keen on Anadarko for a while, Occidental Petroleum is ready to do battle with Chevron for the big independent.
ConocoPhillips to Exit UK E&P Business in $2.7-Billion Sale
With the purchase, the growing, privately-held Chrysaor Holdings will expand its UK North Sea production to 185,000 BOE/D.
Majors, IOCs Win Blocks in Argentine Offshore Bid Round
Thirteen companies placed bids on 18 blocks in the Austral, North Argentina, and Malvinas West basins as part of Argentina’s first open bid round for offshore acreage in more than 20 years.
Israel’s Delek Group to Buy Stake from Shell in US Gulf Field for Almost $1 Billion
The move is part of Delek’s strategy to expand its operations beyond the Eastern Mediterranean region. Shell, meanwhile, is in the midst of a $10-billion divestment program.
What Happened to the Private, Family-Owned Oil Company?
When the oil and gas industry goes one way, family-owned Hunt Oil goes the other. And that’s why the company has been around for three generations.
Three Big Numbers Shaping the Global Crude Picture
Take a quick look at some of the data points shaping upstream headlines and the movement of oil supplies around the world.
Repsol, ExxonMobil Latest to Add Colombian E&P Blocks
Colombia now counts Repsol, ExxonMobil, Shell, and Noble Energy as companies committed to exploration in its portion of the Caribbean Sea.
Noble Energy, Shell to Explore Colombian Caribbean Sea
Noble’s farm-in to blocks recently awarded to Shell marks the Houston-based independent’s entry into Colombia, where the government hopes to boost offshore exploration.
PTTEP to Buy Murphy Oil’s Malaysian Business for $2.1 Billion
Thailand’s PTTEP is doubling down on Malaysian oil and gas in an effort to broaden its reach in its native Southeast Asia.
Shell Dominates US Gulf Lease Sale
The major’s dominant showing in US Gulf of Mexico Lease Sale 252 propelled another rise in bids and dollars for the biannual regionwide auction.
Shale CEO on Parent-Child Challenge, Well Declines: We Know
Encana CEO Doug Suttles assures that shale executives are acutely aware of the parent-child well challenge, and he doesn’t think it’s “a big threat” to the sector.
Israel Hopes to Build on Success of First Bid Round
The second round will offer 19 offshore blocks clustered in five zones to continue natural gas development in the eastern Mediterranean’s Levant Basin.
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