Harvest Operations completes $1 billion refinancingHarvest Operations Corp., a subsidiary of Korea National Oil Corporation with operations in the northern Alberta oil sands (BlackGold), refinanced $1.0 billion through the closing of a new term loan and the restructuring of its existing credit facility. The company entered into an agreement with a Korea-based bank on Feb. 17 allowing it to borrow $500 million through a three-year fixed rate term loan that was drawn down on Feb. 24. Proceeds were used to repay credit facility borrowings. The...
Mar 22, 2017
What the Analysts are Saying About A&D- February 16, 2017ChevronRecent developments. Last December Chevron sold its geothermal assets in Indonesia and the Philippines, in line with its strategy to maximize the value of its global upstream businesses through effective portfolio management. The assets included geothermal fields in Indonesia and Chevron’s 40% interest in a geothermal company in the Philippines. Proceeds from asset sales were $2.8B in 2016, and the company currently expects them to be near the top of the guidance range of $5-$10B...
Feb 16, 2017
Shell’s shift from growth raises doubts for LNG CanadaRoyal Dutch Shell plans to slow the pace of its investments in LNG projects as it seeks to maximize cash flow and improve returns on its existing projects, the company said in a 2016 capital markets day release. The company said its integrated gas business, which was previously a growth priority, has reached critical mass following its US$53 billion acquisition of British giant BG Group and planned growth in LNG, particularly in Australia. The move raises concern about the future of its...
Jun 07, 2016
LNG Canada wins facility permitThe LNG Canada export facility proposed for Kitimat, BC, led by Royal Dutch Shell, has received a facility permit from the BC Oil and Gas Commission. The project is the first of the 20 LNG proposals to receive the permit, which outlines design, construction and operation requirements. The permit includes 30 conditions, including ones for response plans and noise management. The US$40 billion project still needs a permit from Fisheries and Oceans Canada.Four LNG...
Jan 05, 2016
Harvest stalls oil sands project on low pricesKorean-owned oil sands company Harvest Operations is putting its 10,000 bo/d BlackGold SAGD oil sands project southeast of Ft. McMurray on hold until oil prices improve. The company will cut 105 jobs from the project. It has set an oil price target of US$60 WTI before it will move to start production at the facility.Of the 105 people laid off, 70 had been working in Calgary. Harvest increased its cost estimate for BlackGold to $900 million because of weather-related construction delays...
Apr 01, 2015
Volumes (Jan. 23; Short Stories)- Thailand said the country’s energy consumption is projected to rise 4.8% year on year to an average of 1.87 million b/d of oil equivalent based on the assumption of a 3.5%-4.5% increase in GDP.
- Some say the world’s second largest oil consumer China will continue to be dependent on crude imports but at a slower pace of 4.4%-5.5% in 2011 or 9.3 million and 9.5 million b/d. The country saw an increase of 11% in 2010.
- Xinhua News Agency was quoted in Platts as saying crude oil...
Jan 23, 2011
Korea to build oil sands plant in CanadaKorea National Oil Company (KNOC) plans to build a 10,000 b/d bitumen-from-oil-sands plant at a cost of C$297.5 million. Construction is expected to begin in October and the plant will have the capacity to be expanded to 30,000 b/d down the road.
Korea is increasing its oil and gas investments abroad to bolster its energy security. KNOC purchased the Blackgold oil sands mine in the Cold Lake region of Alberta in 2006 and in October 2009, KNOC acquired Canadian oil producer and refiner...
Aug 06, 2010
Sovereigns target Canadian oil and gas reserves2010 is shaping up to be the year of the foreign investor. In a twist on conventional wisdom, sovereignties are eyeing North American resources as strategic assets towards satisfying their internal energy demand. While most overseas capital seeks an investment level return on its capital, investments from Asia serve another purpose of securing access to a dwindling national resource in their own countries.
In the latest such development, Encana has formed a shale gas joint venture with...
Jul 16, 2010
NOCs & SWFs target Canadian oil and gas reserves2010 is shaping up to be the year of the foreign investor in the Canadian oil patch. In a twist on conventional wisdom, national oil companies (NOCs) and sovereign wealth funds (SWFs) are eyeing North American resources as strategic assets. While most overseas capital seeks an investment level return on its capital, some investments from Asia serve another purpose-- securing access to natural resources for their own countries.
In the latest such development, Encana will negotiate a potential...
Jul 12, 2010
Letter from Calgary: Afterthoughts and takeawaysWith spring break up, having run its course and last week's Victoria Day signaling the start of summer, Canadian oil and gas professionals took time to review, refresh and reload at the PLS Dealmaker's Conference in Calgary May 19.
The takeaway from this annual conference on capital markets And mergers and transactions is that the Canadian oil and gas patch is well positioned to compete in a global market that seeks abundant natural resources from stable political regimes.
And that has...
May 28, 2010
More Asian and other foreign JV's expected in Canada in 2010Foreign capital will continue to flow into the Canadian oil patch this year, with more joint ventures expected, according to acquisition and divestiture experts.
Recent examples include farm-out agreements between Encana Corp. and Korea Gas Corp., which will invest about $564 million over three years to earn a 50% WI in154,000 acres in the Horn River and Montney Shales in the Greater Sierra and Cutbank Ridge resource plays. Another involves Penn West Energy Trust which entered into a JV with...
May 21, 2010
Capital Market Briefs - July 16, 2012• Cairn Energy shareholders have approved plans by the board to dispose of all or part of Cairn's residual interest in Cairn India. Pursuant to this, Cairn tapped Citi to sell ~3.5% of its stake in Cairn India for gross proceeds of ~$360 million. Following the sale, Cairn will retain ~18.3% shareholding in its Indian unit.
• Korea National Oil Corporation is set to become the first non-financial company from Asia to issue Australian bonds following a recent Australian investor...
Jul 16, 2012
A&D News Briefs (Short Stories; Jul 27, 2011)- American Petro-Hunter agreed to acquire 40% WI in a minimum of 3,000 acres in South-Central Oklahoma, known as the "South Oklahoma Project." Terms were not disclosed.
- Austin Exploration Ltd. (Perth) said its US sub will acquire 10,486 acres of mineral rights with no depth limitations in the Denver-Julesburg basin in Colorado for ~$2.1 million. The parcel is adjacent to Florence oil field in Fremont Co. Sellers are Newmont Mining Corp., Cimarex Energy Co., and Prize Energy Corp. Niobrara...
Jul 27, 2011
International Briefs - November 23, 2010- Japan’s Hokuriku Electric Power Company plans to build its first gaspowered plant and LNG import terminal. The 400 MW plant and LNG terminal are expected to cost $1.2 billion.
- Uganda decided to build a 200,000 b/d refinery in Albertine Grabin. About 2 billion barrels of oil has been discovered in Albertine Grabin. Foster Wheeler advised the government on the best location and size for the refinery. The project is expected to cost $4.6 billion.
- Iraq plans to build three pipelines...
Nov 23, 2010
International LNG Briefs - October 20, 2010• Liquid Niugini Gas Limited, a joint venture between Canada’s InterOil and Pacific LNG, signed an agreement with Energy World Corporation for an onshore LNG plant in Papua New Guinea. The project cost is estimated at $910 million. A final investment decision will be made in March 2011 and if the project moves forward, it will be operational in late 2013.
• Iran LNG is on track to begin exporting LNG in October 2012. Construction of the LNG export terminal is one-third complete....
Oct 20, 2010