Finance/Companies news briefs, June 1
Texaco ... Tyumen ... Nova Chemicals � Dynegy � Ontario Teachers Pension Plan Board � Talisman Energy � Tuboscope � Varco ... Krescent Energy ... EEX Operating
US major Texaco Inc. and Russia's Tyumen Oil Co. signed an agreement under which Texaco will provide commodity risk-management advice and related support to Tyumen. Tyumen is the first Russian oil company to enter such an agreement. Tyumen and Texaco have operated a joint venture since January to market in Russia Texaco-branded imported lubricants and Tyumen and Texaco-branded lubricants produced and blended at Tyumen's refinery in Ryazan, 120 miles southeast of Moscow. A new plant at Ryazan, set to start up later this year, will increase that production. Tyumen says the expansion of its relationship with Texaco is part of a strategy to form partnerships with Western companies for marketing, investment, exploration, and production.
Nova Chemicals Corp., Calgary, has sold its remaining interest in Houston-based Dynegy Inc. on financial markets for $45.8 million (US). Nova sold a 25.5% interest in Dynegy in early 1999 and has realized a total of $741 million for its Dynegy stake. After-tax proceeds are expected to be about $605 million. Nova Chemicals is a spin-off of a 1999 merger between Nova Corp. and TransCanada PipeLines Ltd., both of Calgary.
The Ontario Teachers Pension Plan Board says it will consider a request from teachers to sell its stake in Calgary-based Talisman Energy Inc. The 144,000-member fund holds 3.8 million shares in Talisman worth about $190 million (Can.), and some members are concerned about ethical issues related to Talisman's operations in Sudan. A board executive said the board is under no pressure to sell and will continue to hold the shares for the moment. It will consider the request at a June 11 meeting. A spokeswoman for the board said its fiduciary duty does not allow it to make decisions on moral grounds, and by law it is required to invest to the best financial interest of plan members. However, the president of the Ontario Teachers Federation said fiduciary duty does not preclude or prevent ethical investing.
Stockholders overwhelmingly approved the previously announced merger of Tuboscope Inc. with Varco International Inc. in separate meetings this week (OGJ, Mar. 27, 2000, Newsletter). Each share of Varco common stock was converted to 0.7125 share of Tuboscope common stock in the merger, which was accounted as a pooling of interests into a company with a combined market capitalization of some $2 billion. Tuboscope is a supplier of internal tubular coating and tubular inspection services, solids control equipment and services, and coiled tubing and pressure control equipment. Varco designs and manufactures drilling equipment, machinery, and instrumentation.
Krescent Energy Co. LLC, Houston, has acquired all the right, title, and interest of EEX Operating LP and EEX E&P Co. LP in eight fields in Louisiana and Texas. The acquisition contains an estimated $27 million PV10 value in proven and probable reserve categories under a recent third-party reserve report, says Krescent. Over 60 square miles of 3D seismic and an additional 100 miles of 2D seismic were included as part of the sale.