TOPICS OF INTEREST
ASSET/PORTFOLIO MANAGEMENT
GOM E&P Fieldwood Energy Files Chapter 11, Its Second Since 2018
The Gulf of Mexico E&P exited its first bankruptcy quickly with a strategy that included the acquisition of Noble Energy’s GOM assets, which increased its production volumes 25% when the WTI approached $80/bbl. Fieldwood’s financial woes in today’s economics may be tougher to overcome.
ExxonMobil Looking At A 20% Reserve Reduction
ExxonMobil is reluctant to join other big oil companies writing down the value of their reserves. It could chop its reserves by 20%, but it has not made a final decision.
BP Pivots From IOC to Integrated Energy Company as It Resets for Energy Transition
Supermajor announces actions to achieve net-zero ambition and reshape business. It also noted that it will not seek to explore in countries where it does not already have upstream activities.
After 4 Years, Range Resources Exits Louisiana Tight-Gas Play
The Pennsylvania-based producer will leave Louisiana where profiting from tight-gas fields has proven difficult and focus on its legacy assets in the Marcellus Shale.
Shell, Chevron Combined Quarterly Losses Top $25 Billion
Shell and Chevron lead the pack in a slew of Q2 losses with $18.1 billion and $8.3 billion, respectively. ExxonMobil, ConocoPhillips, Royal Dutch Shell, Petrobras, and Repsol also posted losses. The tally of these global majors’ losses in a single quarter tops $30 billion.
As Oil Companies Fade Away, Who Will Buy Their Wells?
Shale producers proved they could pump out record volumes of oil by drilling horizontal wells and then fracturing them intensively. Now the industry needs to find buyers for many wells and acreage with hard-to-determine values.
ConocoPhillips To Acquire Canadian Unconventionals in Montney Shale
The all-cash deal bucks a recent trend of international oil companies divesting of Canadian assets and adds 15,000 B/D of production to the buyer’s total.
From Running 13 Rigs to “Just Sell What You Have Got”
A company built with a plan to quickly profit from the shale boom began a slow decline when oil prices sank to $50/bbl. Others could be following it to bankruptcy court this year.
Australia Presents Opportunity for E&P Companies Looking Beyond US Unconventionals
Black Mountain executives outlined the key criteria they used to determine why Western Australia was a prime location for private-equity investment when looking at international unconventional plays.
Unconventionals at a Crossroads: Where Do We Go From Here?
URTeC 2020’s opening plenary session panel shared insights into how the shale industry can scale technology, fiscal restraint, and social responsibility into a sustainable business case for a new energy landscape.
Are Half the Companies in Shale Really Superfluous?
Judgment day may finally have arrived for weak players in the shale business. Deloitte ranks nearly half of the companies as extraneous. What happens next?
Chevron Scoops Up Noble Energy in $5-Billion Deal
Chevron strengthens its North American position with assets in the Permian, DJ, and Eagle Ford basins and offshore in Israel and West Africa.
Oil and Gas Companies Begin Turning to Renewables To Power Operations
IHS Markit says the industry’s “striking pace of growth” and a dynamic commercial environment are fueling the movement to zero-carbon sources.
Dispute Over Mexico’s First Foreign Offshore Discovery Is Drawing to a Close
Pemex and Talos Energy have 120 days to decide how to share a massive offshore field that both companies claim they should operate. Failure to come to terms means the government will decide the matter.
Price-Plunge Fallout: Let’s Make a Deal
Nearly everything’s on the table as companies aim to shore up portfolios by curtailing investments and dumping low-priority assets.
Shell Wipes Out Up To $22 Billion From Major Oil and Gas Projects
Two of the biggest assets to suffer from the new valuation are in Australia. Shell’s QGC venture and its floating liquified natural gas facility, Prelude, have been reduced in value by up to $9 billion.
BP To Sell Petrochemicals Business for $5 Billion
The deal includes 15 global sites and over 1,700 staff expected to transfer to INEOS upon completion of the sale. The deal also follows BP’s announcement earlier in the month that it would cut 14% of its workforce.
Chesapeake Energy Files for Bankruptcy Protection
The distressed shale pioneer will wipe away nearly $7 billion in debt and is likely to make major asset sales as it attempts to restructure itself into a profitable business.
JV Strikes Blockbuster Infrastructure Deal With ADNOC
The $20.7-billion agreement is the single-largest energy infrastructure investment in the region.
BP Slashes Up to $17.5 Billion in Assets; Cites Pandemic for Swifter Shift to Net Zero
Write-offs include billions for early-exploration-stage projects that the company will now cut.
What Damage Is Wrought by the Rush to Shut In Wells?
The Permian Basin is now influencing the upstream water market on the way down, while many questions swirl around the implications of unprecedented shut-ins.
US Dept. of Interior Stalls More Oil and Gas Lease Sales
Mississippi land no longer up for grabs, as the fed continues to postpone or cancel the sale of public parcels.
Lagos Court Rulings Thwart Nigerian Oilfield Licensing Round
Country had hoped to boost oil output and bring in much-needed revenues.
Schlumberger To Restructure Business Units
Schlumberger plans to restructure by focusing on basins and divisions in line with customers’ E&P workflows.
Neptune Exits Deal With Energean for North Sea Assets
Neptune must pay Energean a break-up fee of $5 million for cancelling what was to be a $250 million deal.
Total Puts the Brakes on Oil Deal With Occidental
Houston-based Occidental had earmarked the money to ease debt from buying Anadarko.
ADNOC’s New CTO Shares Innovation Philosophy
Alan Nelson is not only the new chief technology officer at ADNOC, he is the company’s first person to hold the title at the integrated oil company.
Wintershall Dea Makes Third Oil Discovery in Less Than a Month
Two discoveries offshore Mexico add to April’s finding in the Norwegian Sea.
KLX Energy Services To Merge with Quintana Energy Services
The merged companies will offer large-diameter coiled-tubing, directional drilling, snubbing, wireline services, and pressure pumping services.
Offshore Discoveries Continue Even as Shale Slows
Four recent deepwater offshore discoveries show exploration is not dead, it is just concentrated offshore.
Diamond Offshore Files for Bankruptcy
The chapter 11 filing comes as record-low crude prices and excess supply have impacted operations across the industry. About 2,500 jobs could be at stake.
Negative US Oil Prices Could Return in May
The nuances of futures contracts caught many of the world’s traders off guard, sending major US crude benchmark into negative pricing territory for the first time. But it probably will not be the last time.
IEA Head Declares “Black April” as Oil Oversupply Peaks at 29 Million B/D
A new report shows that the worst of the ongoing downturn may be soon over. A gradual recovery to global oil markets is expected to begin in the next few weeks.
Pandemic, Falling Oil Prices Threaten Global Licensing Rounds
Exploration commitments are expected to dwindle in the current market environment.
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.
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.
Another Brazilian Auction Fails To Draw Bids from Majors
Chinese firms stepped in for the majors in Brazil’s two underwhelming offshore auctions.
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.
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