OFS - McDermott finishes structures & pipelines project off Malaysia - July 2020McDermott International completed the Pan Malaysia transportation and installation projects located off Miri, Malaysia, for Sarawak Shell Berhad and SapuraOMV. Awarded in November 2018, the projects included the transport and installation of jackets, topsides and pipelines for the Gorek, Larak and Bakong gas fields. McDermott’s vessel, the Derrick Barge 30, was used to install the structures and pipelines, including the longest corrosion-resistant alloy pipeline in Malaysia....
Jul 01, 2020
CM - SPAC Tortoise shedding midstream shell for powertrain maker - June 2020Special-purpose acquisition company Tortoise Acquisition Corp., which intended to buy a midstream or water company when it went public in March 2019, has gone in a different direction. The blank-check company announced an agreement to purchase Hyliion Inc., a Pittsburgh-based maker of Class 8 electric powertrains for long-haul trucks. The deal places the combined companies’ value at over $1.5 billion, assuming no Tortoise public shareholders exercise their redemption rights. Upon completion of...
Jun 26, 2020
IS - Projects advance, assets hit the market amid volatility - June 2020Although the oil and gas industry is still nowhere near where it was at the beginning of the year, there are signs that companies are starting to take cautious steps forward as pandemic restrictions ease and oil prices begin to recover. Senex Energy announced it completed its $280 million Surat gas project with 30 fewer wells than it originally thought it would need (PG.1). Canada loosened restrictions on exploratory drilling off Newfoundland (PG.1), where Equinor reportedly made a discovery in...
Jun 22, 2020
IS - Shell reportedly puts Norwegian North Sea assets on the market - June 2020Shell has reportedly launched a sale process for its stakes in two Equinor-operated oil fields in the Norwegian North Sea. According to a sales document cited by Reuters in a June 11 report, the Anglo-Dutch supermajor is marketing its non-operated 6.45% WI in the Kvitebjorn gas and condensate field and pipeline and 3.225% WI in the Valemon gas field and rich gas pipeline (Enverus Deal ID: 12556). A sale could fetch between $50 million and $100 million, sources said. According to the...
Jun 22, 2020
IS - Exxon reportedly plans to revive UK North Sea sale process - June 2020ExxonMobil plans to relaunch the sale process for its UK North Sea assets after low oil prices and the coronavirus pandemic led the supermajor to postpone the effort earlier this year, unnamed sources told Reuters for a June 11 report. The divestment is expected to bring in $1-1.5 billion, less than the more than $2 billion that sources said Exxon was seeking when it launched the marketing process late last year with Jefferies. The supermajor has recently held discussions with several...
Jun 22, 2020
IS - Nigeria offers 57 fields in first marginal round since 2002 - June 2020Nigeria kicked off its marginal field licensing round on June 2 and is offering 57 undeveloped discoveries in onshore, swamp and shallow-water plays. The Department of Petroleum Resources said the process is expected to take no longer than six months from beginning to end. The government is offering 22 fields left dormant by Shell, 12 from Chevron, 11 from ExxonMobil, five from Total, two from Agip and an additional five fields selected by the DPR. A list of pre-qualified bidders will...
Jun 22, 2020
IS - Mubadala begins development drilling for Pegaga project - June 2020UAE-based Mubadala Petroleum began a seven-well development drilling campaign for the Pegaga development project on the SK 320 block off Sarawak, Malaysia, Enverus International reported. Velestro Energy’s Naga 4 jackup rig will drill the wells, and they are expected to be completed by the end of June 2021. Mubadala expects the Pegaga project will cost $1 billion. First gas is slated for 3Q21. Sapura Energy began installing the integrated central processing platform in March. It is...
Jun 22, 2020
IS - TC completes stake sale of Coastal GasLink, accesses financing - June 2020TC Energy closed the sale of a 65% stake in its Coastal GasLink pipeline project in British Columbia to private equity group KKR and Alberta Investment Management Corp. on May 27. The 416-mile project will connect the Dawson Creek area with the LNG Canada liquefaction and export facility being built in Kitimat and provide a contemplated initial capacity of 2.1 Bcf/d. The pipeline is fully permitted and approved by regulators, and construction is underway. Shell backed LNG Canada is expected to...
Jun 22, 2020
IS - Chevron launches sale of North West Shelf LNG stake in Australia - June 2020Chevron said it is launching a sale process for its 16.67% stake in the A$34 billion ($23 billion) Woodside Energy-operated North West Shelf project in Australia, after receiving approaches from several “credible” potential buyers. Analysts cited by Bloomberg said the interest could be valued $3-4 billion, down from valuations as high as $6 billion prior to the sharp decline of LNG prices earlier this year because of the coronavirus outbreak. As the North West Shelf project’s offshore...
Jun 22, 2020
MI - Midstream working through compression; keeps flowing - June 2020Oneok, Inc. came to the equity market last week to sell 26 million common shares for $832 million. It’s the largest sale by a midstream issuer since, well, Oneok’s January 2018 sale. Proceeds from the surprise sale could exceed $950 million upon full exercise of the 3.9 millionshare overallotment option, bringing the company closer to its $1.04 billion haul two and a half years ago (PG.1). Analysts see Oneok’s decision as a way to help bring reliance on debt down during these precarious times,...
Jun 17, 2020
MI - NFG offers $150MM in common following $500MM debt sale - June 2020National Fuel Gas Co. offered 3.8 million common shares at $39.50 each on May 28 for net proceeds of $144.8 million. The company also granted underwriters, led by JP Morgan, BofA and Goldman Sachs, a 570,000-share overallotment option, which if exercised in full would add around $21.7 million to net proceeds. Following the closing of the equity offering and greenshoe, NFG will have about 90.3 million shares outstanding. The common stock sale came quickly on the heels of the issuance of...
Jun 17, 2020
MI - LNG trading will be more than OK, say Shell and the IEA - June 2020Royal Dutch Shell Plc, the world’s biggest LNG trader, expects trading of the frozen gas will return to pre-pandemic levels soon. “We still very much believe that, with the current supply-demand outlook, this is a fundamentally strong sector that will grow at a rate that is close to 4% per year,” CEO Ben van Beurden told Bloomberg. His comments echo Shell’s projections for worldwide LNG demand given in February, when it said demand would double to 700 mtpa by 2040. The world used 13% more LNG...
Jun 17, 2020
MI - People & Companies - June 17, 2020Enbridge Inc. elected Stephen S. Poloz director. He was governor of the Bank of Canada from 2013 until June 2, as well as chairman of the bank. He had previously been president and CEO of Export Development Canada from 2011 to 2013. Trade Association GPA Midstream announced new officers elected to one-year terms. Its new board chairman is Bill Ward, SVP of commercial activity at Superior Pipeline. The chair-elect is John Poarch, president of ARM Energy Midstream/Salt Creek Midstream....
Jun 17, 2020
A&D - Freedom O&G gets $4.3MM stalking-horse Eagle Ford bid - June 2020Eagle Ford producer Freedom Oil & Gas, the Houston-based operating arm of Australia-listed Freedom Oil & Gas Ltd., joined the ranks of E&P firms selling assets via Section 363 processes after filing for Chapter 11 bankruptcy. Plummeting revenue prevented the company from servicing its $10 million debt, which led to the May 11 filing. The company plans to sell all its assets, located in the Eagle Ford, to Australian environmental services company Sendero Resources, the...
Jun 12, 2020
OFS - News Briefs - July 1, 2020Danos will provide a workforce across Shell production assets in the Gulf of Mexico under a new contract win. The projects include Appomattox, Auger, Enchilada, Salsa, Mars, Ursa, Olympus, Perdido and Stones. The three-year contract, which began on May 1 but was announced on June 25, will employ 144 Danos personnel. Positions include crane operations, control room and process operators, electricians, electronic technicians, instrument technicians, logistics and onsite supervisors. A...
Jul 01, 2020