Suncor approves C$20.6B oil sands expansion plans
Suncor Energy has given final approval to a $20.6 billion investment that is expected to boost crude oil production at the company’s oil sands operation, located north of Fort McMurray, by 200,000 b/d. The expansion plans include constructing four additional stages of in-situ bitumen production, a new upgrader to convert that bitumen into higher-value crude oil, and various infrastructure and utilities. Suncor has already invested nearly $2.5 billion on the expansion, including detailed engineering, site work and fabrication of major vessels. Crude oil production is expected to begin ramping up in late 2011, with full production capacity of 550,000 b/d expected in 2012. The capital is expected to be financed through cash flow from operations, credit facilities, and access to debt capital markets.
Halliburton wins $683M PEMEX contract
Halliburton has secured a three-year, $683 million contract from PEMEX to manage the drilling and completion of 58 land wells in the southern region of Mexico. The contract spans a variety of well conditions including depressurized and high-pressure/high-temperature formations, combined with complex geologies and tremendous depths – ranging from 3,500 to 6,500 meters. Services will include wellbore-cementing tools, stimulation equipment and wireline technology, as well as drilling fluids, drill bits, directional-drilling services, and completion tools.
GE Oil snags $300M oil services deal with StatoilHydro
GE Oil & Gas has secured two frame agreements with a total value of more than $300 million to supply compression equipment and services to StatoilHydro. The contracts cover the delivery of complete gas turbine and electric motor driven compressor sets, compressor revamp bundles, commissioning, capital and operational spares for high-pressure, gas re-injection applications, and services and maintenance activities of new and existing machines. Shipments are expected to begin in early 2009, while the first start-ups are anticipated in 2010 or 2011.
Consol to makes offer for remaining CNX shares
CONSOL Energy Inc. intends to offer to acquire all of the outstanding shares of CNX Gas Corp. that it does not currently own in a stock-for- stock transaction. CONSOL currently owns about 81.7% of the roughly 151 million shares of CNX Gas common stock outstanding. The transaction is valued at nearly $932 million. The transaction is expected to be completed in the first half of 2008.
CNOOC, Talisman agree on $212.5M LNG deal
CNOOC Ltd. has reached an agreement with Talisman Energy Inc. to sell a 3.06% working interest in the Tangguh LNG Project with a consideration of $212.5 million. The transaction has been completed through the equity transfer of an indirect subsidiary of CNOOC Ltd. The Tangguh LNG Project, located in West Papua, Indonesia, consists of a number of offshore gas wells, production facilities, pipelines, and LNG plant facilities with a nameplate capacity of 7.6 million tons per year. First LNG is expected in late 2008. Before the transaction, CNOOC Ltd. owned 16.96% of working interests in Tangguh project.
Workstrings acquires Oiltek
Workstrings LLC, a Superior Energy Services Co. has acquired Bogota, Columbia-based Oiltek. Oiltek is a provider of inspection and hardbanding services as well as a specialized supplier of production, refinery, and drilling equipment and parts. Broussard, La.-based Workstrings is a provider of tubulars and accessories providing engineered solutions for drilling projects worldwide.
Continental Resources adds Williston basin properties
Continental Resources has executed a definitive agreement to acquire producing oil properties in North Dakota and Montana from an affiliate of Chesapeake Energy Corp. for $60 million. The Williston basin properties currently produce nearly 700 boe/d. Continental Resources is an independent oil and natural gas exploration and production company with operations in the Rocky Mountain, Mid-Continent, and Gulf Coast regions of the US.
Endeavour completes financing transactions with Smedvig family
Endeavour International Corp. has closed the $40 million investment by the Smedvig Family Office of Norway. The Smedvig family also committed an additional $60 million for future investments with Endeavour. The initial investment of $40 million and a new $25 million lending facility with its primary banks has been used, together with existing cash resources, to retire the $75 million second lien term loan established as part of the Talisman asset acquisition in 2006.
Energy Services to acquire GasSearch Drilling Services
Energy Services Acquisition Corp. has agreed to acquire Parkersburg, WV-based GasSearch Drilling Services Corp. for $23.5 million ($17.5 million in cash to cover current debt and capital expenditures already planned and, a number of shares of Energy Services stock equal to $3.5 million). GasSearch Drilling Service’s management team will remain with the company and its president and CEO, Denny Harton, will continue to serve in that capacity. Harton will become an executive vice president of Energy Services. At the closing, Harton will be appointed to Energy Services’ board. The closing of the acquisition is subject to various closing conditions including the acquisition of another business or businesses, such that the total value of the businesses acquired have an aggregate fair value of 80% of Energy Services net assets, as defined in its initial public offering.
Leed acquires Challenger assets in Main Pass
Leed Petroleum’s operating subsidiary, Leed Petroleum LLC, has signed an agreement with Challenger Minerals Inc. to acquire Challenger’s interests in the Main Pass 57, 64, and 65 blocks located on the outer continental shelf of the Gulf of Mexico. Leed will also acquire interests in the southern half of Main Pass block 57, which is adjacent to Main Pass block 64, and is producing a marginal quantity of oil from one well.
TAQA pays $4.5 billion for PrimeWest Energy Trust
The Abu Dhabi National Energy Co. PJSC (TAQA) announced that its wholly-owned subsidiary TAQA North Ltd. has closed its acquisition of PrimeWest Energy Trust. Don Garner, currently president and CEO of PrimeWest Energy, has been appointed CEO of TAQA North. Garner will be joined by Tim Granger, who assumes the role of TAQA North’s COO.
Expro installs subsea connectors in GoM for BP
International oilfield service company Expro, has installed its Tronic subsea connectors for BP on a pump project to assist in increasing oil recovery in the King field in the Gulf of Mexico. Expro has been working on the BP King contract since November 2005, and installed the equipment in the summer of 2007. The connectors are now operational. The installation has set a new world record by applying this multiphase pumping technology in deep water at 1,800m and an offset of 27km. Production started in November 2007. Expro provides services and products that measure, improve, control, and process flow from high-value oil and gas wells.
Kodiak, Devon set up definitive Vermillion basin exploration agreement
Denver-based Kodiak Oil & Gas Corp., an oil and gas exploration and production company with assets in the Green River basin of Wyoming and the Williston basin of North Dakota and Montana, has entered into a definitive agreement with Oklahoma City-based Devon Energy Production Co. LP, a wholly-owned subsidiary of Devon Energy Corp. Kodiak and Devon will establish an area of mutual interest for the exploration, leasing, and development of certain of Kodiak’s Vermillion basin, Wyoming oil and gas properties.
Petronas to buy 43% of Star Energy
Petronas International Corp. Ltd. has acquired roughly 43% of Star Energy Group. Together with the company’s existing shareholding of 52,885,455 Star Energy shares, Petronas now holds approximately 98.5% of the issued share capital of Star Energy.
Finley Resources scores with $130M acquisition
Finley Resources Inc. has entered into a definitive agreement to purchase certain oil and gas producing properties in the Ark-La-Tex and Rockies regions for $130 million. Finley Resources’ credit facility with Bank of Scotland has been expanded.
AWO signs rig deal for $335.6 million
Awilco Offshore (AWO) has signed a $335.6 million loan agreement for its third semi rig called the WilPromoter. The loan agreement is with Citibank, Eksportfinans/GIEK, and The Export-Import Bank of China. This financing represents roughly 85% of the estimated delivered cost of WilPromoter. The rig is under construction with scheduled delivery in the fourth quarter 2009. The rig will be working on an eight-year contract with StatoilHydro for drilling on the Troll field, commencing mid 2010.
Transocean exits shallow GoM with $320M sale of three jackups
Transocean Inc. has entered into a definitive agreement with Hercules Offshore Inc. to sell three of its US Gulf of Mexico jackup drilling rigs and related equipment for $320 million. The sales of the GSF Adriatic III, GSF High Island I, and GSF High Island VIII will mark Transocean’s exit from the shallow-water area of the US Gulf of Mexico. The sales are expected to be consummated at the conclusion of each rig’s current contract commitment. The company was also awarded a 689-day contract by a consortium headed by Marathon International Petroleum Indonesia Ltd., a wholly-owned subsidiary of Marathon Oil Corp., for the ultra-deepwater drillship GSF Explorer to drill a series of exploration wells in a deepwater province in Indonesia. The estimated contract revenues are roughly $351 million.
W&T Offshore completes acquisition of GoM interest
W&T Offshore Inc. has closed the acquisition of Apache’s interest in Ship Shoal 349 field, located off the coast of Louisiana, and covering two federal offshore lease blocks, Ship Shoal blocks 349 and 359. Estimated proved oil and gas reserves of the acquisition are 10 million boe, or 60.5 bcfe, of which 83% are oil, and 50% developed. The purchase price of $116 million was funded with available cash on hand.
Canadian Superior to buy Seeker for $51.8 million
Canadian Superior Energy Inc. and Seeker Petroleum Ltd. have reached an acquisition agreement whereby Canadian Superior will acquire all of the issued and outstanding shares of Seeker, for roughly $51.8 million, including the assumption of nearly $8.5 million of net debt. The transaction will increase Canadian Superior’s Western Canadian production base by 31% to over 4,350 boe/d.
Noble to sell platform drilling business for $35 million
Noble Corp. is selling the company’s North Sea platform drilling business to Seawell Holding UK Ltd. for $35 million. The sale includes labor contracts covering 11 platform operations in the UK sector of the North Sea. Not included in this sale is a labor and maintenance contract related to the Hibernia platform located off the east coast of Canada. Noble will continue to provide personnel for the drilling and maintenance operations in support of that project and Exxon Mobil.