Russia’s state-owned OAO Gazprom has signed an asset swap agreement granting German utility E.On AG a stake in the Yuzhno-Russkoye natural gas project.
In other recent company news:
- Total SA agreed to buy Talisman Energy Inc. subsidiary Goal Petroleum (Netherlands) BV for $480 million.
- Santos Ltd., Adelaide, has purchased a 100% interest in the offshore Western Australian Carnarvon basin retention licence WA-4-R, which contains most of the undeveloped Spar gas field.
- Harding Energy Partners LLC (HEP), Dallas, reported that it acquired all core Barnett shale assets held by DDJET Ltd. LLP and subsequently sold the holdings to Chesapeake Energy Corp.
- EnCana Corp. has selected Cenovus Energy Inc. as the name for a new, integrated oil company it is creating as part of its split into two independent energy companies—an integrated oil company and a pure-play natural gas company. The companies will focus on unconventional resources.
E.On-Gazprom swap
Under the agreement, E.On will receive 25% minus one ordinary registered share in the charter capital of OAO Severneftegazprom (SNGP), owner and operator of the Yuzhno-Russkoye project in southern Russia and will participate in development of the field.
In return, Gazprom will receive 2.93% of its own shares, which were held by E.On subsidiary E.On Ruhrgas through the company ZAO Gerosgaz. E.On Ruhrgas will retain a 3.5% stake in Gazprom.
As a result of the agreement, Gazprom will hold a stake of just over 50% in SNGP, while E.On Ruhrgas and BASF SA’s subsidiary Wintershall AG will each have a stake of 25% minus one share.
With this agreement, E.On aims to obtain about 6 billion cu m/year from the Russian field or some 60% of its gas-production target of 10 billion cu m/year. Yuzhno Russkoye field is considered one of the world’s largest and has gas reserves of more than 600 bcm, according to E.On.
In September, Rainer Steele, a member of the Wintershall board, said gas production from Yuzhno-Russkoye field is expected to reach 25 bcm next year.
Steele said production at the field is being expanded “more quickly than initially planned” and that output from the field will reach the maximum 25 bcm/year in 2009, 2 years ahead of the original targeted 2011 timetable.
In June, Gazprom Chief Executive Alexei Miller said the firm increased its natural gas production forecast for 2008 by 2 bcm of gas to 563 bcm, or 2.6% more than last year.
“In 2007, Gazprom commissioned several large fields, which allows us to secure the necessary level of production a decade ahead,” said Miller, referring to development of large new deposits at Kharvutinskoye and Yuzhno-Russkoye fields.
Total acquires Goal
Total’s acquisition of Goal Petroleum remains subject to necessary government approvals. Goal’s assets predominantly are in permits that Total operates.
Total E&P Nederland expects the acquisition will increase its production by 8,000 boe/d by 2011.
Santos offshore
Santos has purchased retention licence WA-4-R from the Chevron Australia-led Gorgon project joint venture, which had decided that Spar was unlikely to contribute to the proposed Greater Gorgon LNG development.
The terms and conditions of the sale are confidential, and the transaction is subject to the usual approvals.
Spar field, originally found in 1976 by West Australian Petroleum, has an estimated gas resource of up to 600 petajoules along with some 8 million bbl of condensate. It extends into production licence WA-13-L in which Santos also has a 45% interest.
Santos will now evaluate various development options for the short to medium-term production.
In related news, Santos as a participant in the Barrow Island oil field joint venture, has agreed to an access regime to facilitate the Gorgon JV plans for LNG processing and export from Barrow including a geosequestration of reservoir carbon dioxide into the Dupuy Formation under the island.
HEP-Chesapeake deal
DDJET is a partnership established in late 2006 to develop natural gas production in Tarrant, Johnson, Ellis, Dallas, Denton, Navarro, Collin, and Hill counties in Texas. ExxonMobil Corp. subsidiary Metroplex Barnett Shale LLC was the operator for DDJET.
The HEP-Metroplex partnership came about after Harding Co. identified an underutilized pipeline owned by Metroplex parent ExxonMobil. The pipeline extends from Keller through North Richland Hills, Arlington, Grand Prairie, and Midlothian to Corsicana.
HEP made the decision to sell the assets in order to more fully develop its 146,000 net acres in the James-Limestone and 65,000 net acres in the Haynesville shale, both in East Texas. The team also is exploring 50,000 acres it controls in southeastern Mississippi and its large lease position in West Texas.
Operations have been transferred to Chesapeake at the Railroad Commission of Texas. Chesapeake has contracted with HEP for a transition agreement to assure the orderly handover of operations and a land services agreement for leasing and other services in the area. Petrocasa Energy Inc. continues to lead leasing activity.
HEP did not disclose either the assets acquired by Chesapeake or the purchase price.
EnCana spinoffs
Under the proposed split, announced last May, the newly named Cenovus will be a fully integrated North American oil company with in situ oil sands properties, refineries, and an underlying foundation of oil and gas resource plays (OGJ, May 19, 2008, p. 33). The natural gas company will continue as EnCana Corp., the company said.
“Cenovus is the newest name in the North American energy business. The name Cenovus successfully captures the essence of what we want our North American integrated oil company to be—a strong enterprise with a sustainable, innovative, and bright future,” said Brian Ferguson, EnCana’s chief financial officer, who is the designated president and chief executive of Cenovus. Other officers were announced this summer (OGJ, July 14, 2008, p. 44).
The proposed corporate reorganization, expected to close in early 2009, will be implemented through a “plan of arrangement” and is subject to shareholder and court approval.
An information circular setting out details of the plan of arrangement will be mailed to EnCana shareholders in mid-November, followed by a shareholders’ meeting planned for mid-December.
