TOPICS OF INTEREST
A New Offshore Investment Cycle Is in the Making
The amount of oil and gas resources approved for development last year surpassed 20 billion BOE, the highest level seen since 2011. Telltale signs have emerged that we are entering a new offshore investment cycle.
Energy Companies Well Suited To Adapt to Industry 4.0
Industry 4.0, the latest industrial revolution, has hit the manufacturing sector, building upon the adoption of computers and automation into industrial processes. How well suited is the oil and gas industry to leverage the new autonomous systems that could emerge from this transformation?
UK Leads Global Drop in Operational Production Costs
Global OPEX is falling, and the UK has emerged as a cost-cutting powerhouse among global offshore regions feeling the squeeze of uncertain oil prices. In pursuit of lower unit prices, Rystad Energy says that operators and contractors have begun nurturing operational improvements.
Premier Acquires North Sea Assets from BP, Dana
The company will shell out more than $800 million to acquire interests in the Andrew and Shearwater areas, as well as the Tolmount field, offshore Scotland.
Talos Energy Spends $640 Million on Gulf of Mexico Assets
The deal boosts Talos' 2019 production by 35%, helping the independent E&P company become one of the top 10 producers in the Gulf of Mexico.
Woodside Submits Proposal for Senegal Offshore Field
One of the biggest discoveries in the past decade, Sangomar, moves closer to sanction as operator Woodside and its joint venture partners submit the plan for the field's development. First oil from Senegal's first offshore development is scheduled for 2023.
Saipem Considering Merger With Subsea 7
Bloomberg reports that Saipem is seeking to bulk up and weather an industry downturn. A potential deal could create an oilfield service giant with more than $12.4 billion in revenue.
Ithaca Completes $2-Billion Deal for Chevron’s North Sea Assets
The deal, first announced in May, gives the Delek subsidiary 10 additional producing field interests in the UK North Sea, boosting its 2019 production by 300%.
TechnipFMC’s Newly Named E&C Player To Focus on LNG
Technip Energies will work on a backlog comprising more than 50% in LNG-related business. Retaining the TechnipFMC name, RemainCo will generate nearly 90% of its revenue outside the US and Canada.
Abu Dhabi Investor Commits $50 Million to NextDecade
NextDecade and Mubadala Investment Co. have reached agreement for Mubadala to purchase $50 million of NextDecade’s common stock in a private placement. The capital buoys the development of the Rio Grande LNG export solution linking Permian Basin associated gas to the global LNG market.
SBM Offshore Completes Financing of Liza Unity FPSO
As construction continues, SBM Offshore secured the $1.14 billion needed to finance work on the vessel. Liza Unity is scheduled for deployment at ExxonMobil's Liza Phase 2 development offshore Guyana.
Santos Acquires ConocoPhillips's Australian Assets for $1.39 Billion
The deal for ConocoPhillips’s northern Australian portfolio will help the Australian company boost its position in the country’s gas market, as it gains majority ownership in a set of key assets including Darwin LNG and the Barossa project.
Total Expands Partnership With Adani on India’s Gas Market
The agreement—in which Total will reportedly pay $600 million for a 37.4% stake in the Indian gas conglomerate—boosts the supermajor’s LNG market access in India and neighboring countries. It is the latest move in Total’s aggressive expansion of its LNG portfolio.
ExxonMobil Eyes Sale of Malaysian Offshore Assets
A month after it got out of Norway, Bloomberg reports that the company is working with advisers on a potential Malaysian sale, which could raise as much as $3 billion. ExxonMobil plans to divest around $15 billion in nonstrategic assets by 2021.
Qatar Petroleum Takes Over Pair of Offshore Fields from Oxy
As Oxy looks to divest billions in assets and focus more on its prime US shale fields, it sheds itself of the ISND and ISSD fields off the eastern coast of Doha. In announcing the lease loss last year, Oxy said the fields need significant infrastructural investment.
Var Energi Seeks NCS Portfolio Boost From ExxonMobil Sale
With its $4.5-billion acquisition of ExxonMobil’s remaining portfolio on the Norwegian Continental Shelf now official, Var Energi says it hopes to realize its ambitious growth plans.
NGL Acquires Hillstone, Adds to Delaware Water Infrastructure
The $600-million deal sees NGL net around 580,000 B/D in disposal capacity and 680,000 B/D in transportation capacity via 19 saltwater disposal wells and a network of produced water pipelines. Hillstone also holds an aggregate of more than 110,000 acres in the Delaware Basin.
ModuSpec Divests From Lloyd’s Register, Becomes Independent Service Organization
ModuSpec, a drilling rig inspection, auditing, and training services company, re-emerges as an independent operating company following a strategic restructure of Lloyd’s Register. It will focus on the Middle East and Asia, as well as Egypt, Uganda, and Kenya.
Tellurian Signs $7.5-Billion Deal With India’s Petronet LNG
India’s Petronet LNG Ltd. signed a $7.5-billion agreement to buy into Tellurian Inc.’s proposed LNG terminal in Louisiana in what is described as potentially one of the largest foreign investments in the US to ship shale gas abroad.
ExxonMobil Looking To Exit Key Australian Basin
As the operator seeks to raise $15 billion from asset sales through 2021, it sees a viable opportunity in its Gippsland Basin upstream portfolio, which could fetch up to $3 billion in a sale. Wood Mackenzie anticipates strong interest, but the age of the field may prove problematic.
Yinson Loses $1-Billion FPSO Charter for Vietnam Project
Amidst a conflict between Vietnam and China over the South China Sea, the Malaysian company’s 10-year deal to supply an FPSO for the Ca Rong Do offshore field is now history. Repsol, the operator of Ca Rong Do, suspended the project last year in the wake of government pressure.
GE Closes Sale of Baker Hughes Shares
As part of a deal that could net up to $3 billion, GE will lose majority control of Baker Hughes just two years after it acquired the oilfield service company.
ExxonMobil Agrees To Sale of Norwegian Upstream Portfolio
ExxonMobil confirmed an exclusivity agreement with Var Energi for negotiations of a sale that could reach $4 billion, according to Reuters. If it goes through, the deal would make Var Energi the second-largest producer on the Norwegian Continental Shelf.
H2O Midstream Acquires Sabalo’s Permian Produced Water Assets
The deal sees H2O Midstream increase its produced water gathering network to more than 435,000 B/D of disposal capacity and 190 total miles of pipeline. The Permian water midstream company will add more than 40,000 B/D of recycling capacity with the option to double that capacity over time.
TechnipFMC To Create Two Independent, Publicly Traded Companies
The transaction is planned to be structured as a spin-off of TechnipFMC’s onshore/offshore segment to create SpinCo and RemainCo. The separation is expected to be completed in the first half of 2020.
Pembina Pipeline To Acquire Kinder Morgan Canada in $4.35-Billion Deal
Calgary-based Pembina Pipeline Corp. has entered into agreements to acquire Kinder Morgan Canada Ltd. and the US portion of the Cochin Pipeline system from Kinder Morgan for a total purchase price of approximately $4.35 billion.
Equinor Starts Up Mariner Field in North Sea
One of the largest industrial projects in the UK in recent years, Mariner marks Equinor’s first operated field on the UK Continental Shelf. It is expected to produce 70,000 BOPD at peak rates.
First Kenyan Oil Exports Heading To ChemChina
Seven years after discovering commercial reserves in the northern part of the country, the Kenyan government and a group led by Tullow have accepted a bid from the Chinese trading company to purchase its first shipments of crude.
Equinor Gets Green Light To Start Up Utgard
The Norwegian Petroleum Directorate has given clearance to start up facilities at the North Sea field, which straddles the line between the UK and Norwegian sectors. Production is set to begin in September.
Hillcore Group Acquires Major Canadian Well Services Company
The private investment firm said it will partner with Treeline Well Services, one of the largest private rig providers in Canada, to build its service fleet following acquisition of the company. Treeline’s core areas are in Alberta and British Columbia.
Kosmos on Track for Mauritania, Senegal Deal
The E&P company said that a reduction in its interests for projects off the coast of the West African nations should still happen by the end of this year. This includes the large Greater Tortue Ahmeyim LNG project, which is set to start up in 2022.
Shell Sanctions Deepwater PowerNap Project
The subsea tieback is expected to start up in 2021. This is Shell’s second major development on a tieback in the US Gulf of Mexico, following Kaikias’ startup in May.
Water Midstream Companies Strike Deals in Delaware, STACK Plays
A joint-venture agreement gives Solaris control of Concho’s produced-water infrastructure in New Mexico, and Lagoon Water Solutions closed on a deal with Continental in Oklahoma.
Aker Energy Moves Closer to IPO
With a $100-million investment and submittal of its offshore Pecan field development plan to Ghana authorities, Aker Energy continues its positioning for an IPO later this year.
ADNOC and CNOOC To Collaborate in Upstream, Downstream, and LNG
ADNOC and CNOOC will explore multiple new opportunities for collaboration across the upstream and downstream sectors in the UAE and China.
Private Equity Fund To Acquire BHGE’s Reciprocating Compression Division
The reciprocating compression division manufactures and services compression and engine systems that are used in a variety of applications, including the transmission of natural gas across domestic and international pipelines.
Total To Sell UK North Sea Assets to JV
The $635-million deal sees Oman-based Petrogas and Norwegian private equity company HitecVision acquire a package of non-core North Sea assets, including 100% ownership stake in four fields.
Neptune Gets Green Light for Pair of North Sea Tiebacks
Norwegian authorities approved development plans for Duva and Gjøa P1, both of which are expected to produce first oil in late 2020. The fields will each tie back to the Gjøa platform on the Norwegian Continental Shelf.
Equinor Targets 2022 FID on Rosebank Project
One of the largest pre-sanction fields on the UK Continental Shelf, Rosebank, could significantly bolster the company’s UK portfolio. However, the field’s water depth and harsh environment may run development costs into the multibillion-dollar range.
Joint-Venture Partners Contract With Anadarko for Mozambique Area 1
Anadarko Petroleum selects JV companies to provide EPC for the onshore LNG development. Saipem scores the biggest contract in its history. Work will begin upon FID, expected this month.
Cheniere Makes FID on Sabine Pass Train 6, Signs Gas Deal With Apache for Corpus Christi Facility
Sabine Pass Train 6 gets the nod, Bechtel gets the go-ahead for construction. Apache Corp. signed a deal with Cheniere to supply natural gas produced from its Permian Basin Alpine High area to the Corpus Christi LNG facility
Tariffs Pack a Bigger Punch Than Tax Incentives
Louisiana state granted a tax incentive to LNG Ltd. for its Magnolia project in Lake Charles. Although a beneficial development, it’s a drop in the bucket in the company’s progress toward FID.
Santos P'nyang Farm-In Advances PNG LNG Expansion
Santos signed a binding letter of intent to acquire a 14.3% interest in Petroleum Retention License 3, which contains the P’nyang natural gas field in Papua New Guinea.
Venture Capital Fuels the Digital Deepwater Oil Field
The technologies born out of innovative ideas have been critical for advancing deepwater assets in the past, and venture-capital investment helps incubate risk-taking companies developing those technologies. With digitization becoming a greater focus in industry, what role will venture capital play?
Transactions Solidify Shifting Jacobs Position
A merger with KeyW and the completion of the sale of its energy and chemical segment to WorleyParsons align with the service company’s decision to focus on its higher-growth, higher-margin lines of business.
Weatherford Completes Sales of Laboratory Services and Surface Logging Businesses
These most recent deals bring the services company's divestiture total to $1 billion over the past 1 1/2 years.
Equinor, Faroe Complete Norwegian Offshore Asset Deal
Equinor increases its stake in the Njord redevelopment project as part of the agreement, while Faroe gains Equinor's stakes in four Norwegian Sea and North Sea fields.
Camber Energy Eyes Acquisition of Pipeline Service and Construction Company
The independent oil and gas company is aiming to build shareholder value through a change in business focus to midstream with this step into pipeline service and construction.
Total Begins Full-Field Production at Kaombo
The startup of a second FPSO will add 115,000 BOPD to the deepwater project offshore Angola, bringing overall production capacity to 230,000 BOPD.
Aker Energy Submits Plan To Develop Oilfield Offshore Ghana
If sanctioned and developed, the deepwater Pecan field would be Ghana’s fourth producing offshore field. First oil is expected 35 months after sanction, which could come as early as this year.
Williams, CPPIB To Form $3.8-Billion Appalachia Midstream JV
The combination will operate and share ownership of midstream gas assets in the Utica and Marcellus Shale plays. CPPIB financially backs operator Encino Energy, which last year acquired Chesapeake Energy’s Utica assets.
Are Deepwater Projects Due for a Revival?
The oil price downturn spawned a lull in deepwater enthusiasm, but better project execution and reduced project lead times have helped operators achieve lower costs and better returns. What does the landscape for deep water look like in the near term? Will operators get more involved?
Imperial Delays Canadian Oil Sands Project
The decision to ramp down production on the Aspen project comes months after the Alberta provincial government imposed production cuts to handle pipeline bottlenecks. Aspen is projected to produce 75,000 BOPD upon startup.
Shell, NNPC Invite Bidders on Bonga South West Deepwater Project
The announcement comes 7 months after the two received permission to begin the tendering process for the project offshore Nigeria, which is expected to carry a peak production of 225,000 BOPD by 2022.
How To Find the Right Data System for Equipment Inspections
Inspection data management system software can help companies bolster their mechanical integrity programs, but choosing the wrong software can have a lasting impact on a company’s operations. So, what goes into finding the right software for your needs?
DCN Diving Nets Dana Petroleum Deal
DCN will execute fabrication, installation, and precommissioning of various components for a gas export pipeline from two platforms in the Dutch North Sea.
To Sanction, or Not To Sanction—That is the Offshore Question
2019’s class of offshore projects show a wide range of potential sanctioning outcomes.
BP Sanctions Atlantis Phase 3 in Deepwater Gulf of Mexico
The decision comes after the company’s discovery of an additional 400 million bbl of oil in place at Atlantis, one of the largest fields in the gulf.
Equinor, Faroe To Swap Norwegian Offshore Assets
The deal gives Equinor an additional 7.5% ownership stake in the Njord redevelopment project and associated tiebacks in the Norwegian Sea, and potentially raises Faroe’s value in the midst of a hostile takeover attempt by DNO.
ADNOC, Saudi Aramco Sign LNG Cooperation Deal
The agreement calls for the two companies to partner on techno-economic feasibility studies and jointly assess investment opportunities across the LNG value chain.
Operations Suspended Following Oil Spill in White Rose Field
A shut-in subsea flowline is believed to be the source of the spill on Husky Energy’s SeaRose FPSO offshore Newfoundland and Labrador. The spill is believed to be the largest in the history of the Canadian province.
Ineos Enters Exclusive Talks for ConocoPhillips North Sea Assets
A deal with the UK-based energy and chemicals company could fetch up to $3 billion for ConocoPhillips, which is transitioning out of the North Sea to focus on US shale operations.
Keystone XL Pipeline Temporarily Blocked
A decision by the US District Court in Montana deals a blow to the TransCanada project, which is designed to transport heavy crude from Alberta to Nebraska.
Equinor Acquires New Canadian Offshore Licenses
The deal gives Equinor exploration parcels in the prolific Jeanne d’Arc Basin, near its existing discoveries offshore Newfoundland and Labrador.
Jacobs Engineering Sells Energy and Chemical Segment to WorleyParsons
The oilfield engineering services industry continues to “wheel and deal” with Jacobs’ $3.3-billion sale to WorleyParsons.
InterMoor Acquires BEL Grapnel and Chaser Designs
The deal covers drawings, designs, and cast patterns for BEL’s anchor- and chain-handling equipment.
Improving Facility Design With Integrated Modeling
Steady-state modeling of an asset requires the work of multiple engineering teams, which often leads to suboptimal facility design. An integrated model using information consistently across the entire asset may alleviate the pain resulting from conventional methods.
Equinor Announces Cost Increase, Delayed Startup for Martin Linge
The North Sea field, which holds an estimated 300 million BOE in recoverable resources, is now scheduled to start production in early 2020. Operator Equinor said the timeline was based on its assessment of the remaining scope of work on the project.
BASF, LetterOne Agree To Merge Oil and Gas Businesses
The deal, which is subject to regulatory approvals, would mark the largest E&P merger in Europe in more than a decade. The two companies combined made $5.5 billion in revenue last year.
Santos Acquires Quadrant Energy, Takes Ownership of Dorado
The $2.15-billion deal gives the company an 80% ownership stake in what could be one of Australia’s largest offshore discoveries in years.
Repsol Establishes Model for Venture Capital Investment
The Spanish E&P company plans to invest more than $11 million by the end of 2018 on startups working in established priority areas, which include resource reuse and sustainability measures.
Baker Hughes To Sell Its Natural Gas Solutions Business
BHGE will sell the division, acquired by GE in 2011 when it bought Dresser, to a private equity investment firm, and a provider of products and services for the distribution and usage of natural gas in Italy. The combined value of the two deals is $375 million.
Total Acquires Engie’s LNG Assets, Becomes No. 2 in Global Market
The $1.5-billion deal delivers a world market share of 10%, including a 16.6% stake in the US Cameron LNG project.
ExxonMobil Awards Second Liza FPSO Contract to SBM Offshore
Scheduled for startup in 2022, the FPSO is expected to produce up to 220,000 BOPD on the development offshore Guyana. Liza is one of eight discoveries ExxonMobil has made in area.
Repsol Targets Upstream Production in Capex Boost
As part of a revised strategic plan, the Spanish company says it will invest more than $9 billion on its overall operations by 2020, with much of it going to its upstream business unit.
The Benefits of Flying Unmanned Aircraft Vehicles at Scale for Asset Managers
Ground sensors on assets over a broad area have limited returns on investment if the asset life cycle is less than 10 years, and obsolescence of the technology if it exceeds 10 years. Complementing sensors with aerial remote sensing at scale may help to mitigate these issues.
Efficiency Focus Helps Industry Chase Deepwater Capital
The president of Chevron North America E&P examines how standardization and operational efficiency is crucial for operators looking to bolster their deepwater portfolios.
McDermott Rejects Acquisition Offer From Subsea 7, Plans To Move Forward With CB&I Deal
McDermott’s board of directors rejected an acquisition offer from Subsea 7, which called for McDermott to abandon its planned $6-billion combination with CB&I. McDermott’s special meeting of stockholders, which was scheduled earlier to address the CB&I deal, will be held on 2 May.
Anadarko Looks to Tiebacks, Platform Life Extension, and Potential Redeployment To Add Value
Anadarko aims to maximize immediate short-cycle value through tiebacks and platform relocations in the Gulf of Mexico.
Aggressive Cost-Cutting: Is it Sustainable?
Onshore development is increasing production, while investors demand greater operational efficiencies. Operators and service companies are striving to strike the balance between fiscal discipline and growing their production. How low can costs go, and for how long?
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ITEMS OF NOTE
07 August 2018
20 July 2018
16 February 2018
18 December 2017
28 November 2017