Houston-based Plains Exploration & Production Co. has sold its remaining interests in oil and gas properties located in the Permian and Piceance Basins to Occidental Petroleum Corp. and certain other companies with contractual preferential purchase rights for cash consideration of nearly $1.25 billion.
Berry Petroleum increases bank commitments to $1.21B
Berry Petroleum Co. has increased its bank commitments to $1.21 billion. Since the October amendment to Berry’s $1.5 billion credit facility, Berry has secured an additional $130 million of bank commitments under the accordion feature. On a pro forma basis at November 30, 2008, Berry’s liquidity was $288 million, which includes the $130 million of new bank commitments. The borrowing base remains at $1.25 billion.
Petrobras inks $857M deal for construction in Campos Basin
Petrobras has signed an agreement for the integration of the hull to the process modules for the construction of Platform P-55. The agreement, worth $857 million, was signed with the Top-55 consortium, formed by Construtora Queiroz Galvao, UTC Engenharia SA, and IESA Oleo e Gas SA. The total construction will be roughly $1.65 billion. The platform is expected to go online in 2011, in the Roncador field, in the Campos Basin. Hull construction was kicked-off in August. In November, agreements were signed with UTC Engenharia for the construction of the gas compression, booster, and dehydration module and of the amine module, worth roughly $54 million and $60 million, respectively. The other agreements were signed with Iesa, in October, for the construction of the sulfate reduction module, worth $62 million, and for the construction of the compression module, for $95 million.
Seadrill snags $378 million rig contract offshore Angola
Seadrill has been awarded a new contract by Cabinda Gulf Oil Co. Ltd. (Chevron) for development drilling offshore Angola with the semi-tender rig West Berani II, currently under construction. The five year contract will start the first quarter 2010, subsequent to delivery from the yard. Estimated contract value is roughly US$378 million, including mobilization, demobilization, and minor upgrades.
Canrig, Epoch Well Services merge
Canrig and Epoch Well Services have merged. The new company is known as Canrig Drilling Technology Ltd. and is headquartered in Houston. Originally founded in Calgary more than 20 years ago, Canrig is a manufacturer of drilling equipment, including top drives, automated catwalks, floor wrenches, control systems and a line of intelligent accessories. Epoch is a supplier of drilling data, analysis and reporting systems and software.
Aker nabs $235M deal; secures additional contract offshore Canada
Aker Solutions, through its subsidiary Aker Installation FP AS, has signed a change order to an existing contract with Reliance Industries Ltd., India, for transportation, installation, and commissioning of the company’s MA-D6 subsea development (2nd phase), including gas export system and production wells. The value is roughly US$235 million. The 2nd phase installation is scheduled for completion by Q2 2009. Additionally, the company has signed a contract with EnCana Corp. for the transport and installation of wellhead protection structures on the Deep Panuke development, offshore Nova Scotia, Canada. The contract will be undertaken by Aker Solutions subsidiary Aker Marine Contractors AS. The scope of work comprises engineering, planning and offshore operations and begins immediately. The offshore operations will be performed in the second or third quarter of 2009.
Oxy, Mubadala ink $500M EPSA to develop in Oman
Occidental and Mubadala Development Co. of Abu Dhabi have signed an exploration and production sharing agreement with the Ministry of Oil and Gas in the Sultanate of Oman. The parties will develop four existing gas fields and explore for potential new discoveries in a newly formed contract area (Habiba - Block 62) in Northern Oman. The 20 year agreement covers a 2,269 square kilometer area. Oxy will serve as operator and hold a 48% interest, with Mubadala holding a 32% interest and the Oman Oil Co. holding the remaining 20%. Exploration, appraisal, and development will begin immediately. Production is expected to begin in 2010 and reach a plateau of nearly 27,500 boe/d by year end 2011. Total capital investment is expected to reach $500 million over the next four years. In addition, the investment will include up to nine exploration wells over a six year exploration period to test the upside potential of the shallow and deep gas plays found in the region.
Flowserve to supply products, services to Saudi Aramco
Flowserve Corp. has signed a 10-year supplier agreement with Saudi Aramco. The supply agreement includes Flowserve’s entire range of flow control products and value-added services for use in Saudi Aramco’s existing and planned facilities. Flowserve recently invested in a new regional pump Quick Response Center (QRC) service, repair and manufacturing facility nearing completion in Saudi Arabia, through a joint venture between Flowserve and Al Rushaid Group. This QRC has been designed to feature the largest pump-testing capability in the Middle East, with a reservoir capable of testing pumps up to 5960 kW (8000 hp). This QRC will help support the Saudi Aramco supply chain for original equipment, parts and aftermarket services. It will also provide access to Flowserve technology.
CGGVeritas lands 3D seismic contract in Venezuela
CGGVeritas has been awarded a land 3D seismic survey by PDVSA, perhaps the largest program recorded to-date in Venezuela. The project, valued at $100 million, will commence in early 2009 and is expected to last roughly six months.
Lime Rock Resources acquires $164M in oil, gas properties in New Mexico
Lime Rock Resources, acquirers and operators of lower-risk oil and gas properties in the United States, has closed the acquisition of $164 million of working interests in oil and gas properties in New Mexico. The acquisition is from an unnamed independent oil and gas producer.
Fluor buys European engineering companies
Fluor Corp. recently acquired two private engineering companies in Europe. The acquisitions include UNEC Engineering NV of Antwerp, Belgium, and Europea de Ingenieria y Asesoramiento (EIA) of Tarragona, Spain. Both companies will become part of the European operations of Fluor’s Global Services business group. Financial details were not disclosed. UNEC has roughly 150 employees and focuses on small capital projects and plant engineering work. EIA has roughly 100 employees and specializes in plant modifications, engineering, and small capital projects. Fluor’s Global Services business group offers solutions to plant and facility owners in improving operations and enhancing execution of capital projects.
Shell buys Cansolv
Shell Global Solutions International BV acquired 100% of the shares of Cansolv Technologies Inc., a developer of ‘scrubbing’ technologies to capture industrial gas emissions. The regenerable amine technology for sulphur dioxide removal from combustion gases has been demonstrated in a variety of applications including oil refineries, chemical plants, utilities and non-ferrous smelters. Cansolv’s offices are located in Canada and China. All employees will be retained. The company will become fully integrated into Shell Global Solutions over time.
Eagle Rock to acquire private oil, gas companies
Eagle Rock Exploration has entered into formal agreements for the acquisition of the outstanding shares of three private oil and natural gas companies for an aggregate cash consideration of $4.5 million ($4.1M for petroleum and natural gas interests and $0.4 million for working capital). No debt is being assumed by Eagle Rock. The acquisitions are expected to add production of nearly 28 b/d oil and 390 mcf/d natural gas. Collectively, the Privatecos hold a 100% working interest and operatorship in a natural gas property in the Conrad area of southern Alberta and a 74.5% working interest and operatorship in an oil property in the Beverley area of southwest Saskatchewan. The acquisitions do not include any commitments for office facilities or employees. The company’s demand revolving credit facility with a Canadian chartered bank increased to $15.5M (previously $9M) in anticipation of this acquisition and in light of production increases. The demand development credit facility has also increased to $4M from $3.5M. The development facility has been drawn to finance capital expenditures incurred in Q3 and Q4 ‘08.
EPL reaffirms borrowing base at $150 million
Energy Partners Ltd. has completed its semi-annual borrowing base redetermination, resulting in a reaffirmation of its borrowing base at $150 million. EPL is an independent oil and natural gas exploration and production company based in New Orleans, Louisiana.
Schlumberger sets up new technology center in Calgary
Schlumberger inaugurated a new oilfield technology center in Calgary, Alberta. The Heavy Oil Regional Technology Center (RTC) will provide a working environment where clients can work hand-in-hand with Schlumberger geoscientists and petroleum engineers to solve key technical challenges associated with heavy oil recovery. The Heavy Oil center features a 3D visualization center, a high-performance computing cluster, a multi-use conference center, and an interactive collaboration space.
WellPoint Systems releases WellPoint Integrated Suite 4.1
WellPoint Systems Inc., a provider of software and related solutions to the energy industry, has released WellPoint Integrated Suite (WIS) 4.1, an integrated oil and gas software application suite powered by Microsoft Dynamics AX. Version 4.1 introduces new functionality by integrating the WellPoint Energy Broker (ENB) and
the WellPoint Energy Financial Management (EFM) solutions. By integrating ENB and EFM, oil and gas companies can benefit from improvements in operational efficiency, international financial management, and business analysis for marketing and pipeline operations.
ConocoPhillips, KU collaborate to use nanotechnology for EOR
ConocoPhillips and the University of Kansas have agreed to a three-year collaborative nanotechnology research program which will focus on the development and testing of new technologies for oilfield stimulation to enhance recovery. ConocoPhillips will contribute $400,000 per year to the program. KU is innovative in nanotechnology research, and has also been examining and developing enhanced oil recovery (EOR) techniques since 1974. While EOR techniques that use injected fluids to stimulate hydrocarbon recovery have been employed for decades, inclusion of nanoparticles may lead to more efficient and environmentally sensitive technologies. KU researchers will use nanotechnology to generate polymer type products and will conduct initial screening and testing. ConocoPhillips will provide additional evaluation and field testing to determine the products’ practical application.
BP, WorleyParsons sign EPMS contract for GoM
WorleyParsons has been selected as the preferred brownfield engineering and project management services (EPMS) provider for BP’s Gulf of Mexico offshore topsides facilities. The services will be delivered under the global EPMS contract which was awarded by BP in June 2008 for a four year term with an option to extend. The scope will involve brownfield topsides modifications for these producing assets, as well as topsides work associated with tiebacks executed by the BP GoM Subsea Projects Group.
Capital City acquires Hotwell Services
Capital City Energy Group has acquired Hotwell Services Inc., an emerging oilfield service company operating in the Appalachian Basin. Based on current projections, Hotwell could add an additional $2,000,000 in gross revenue per month and $700,000 per month in net cash flow for 2009. Hotwell Services Inc. is led by its president, Joseph Sites, who founded Hotwell Services in November of 2007. Hotwell will continue to operate under its current name and management team.
Energy XXI completes borrowing base redetermination
Energy XXI (Bermuda) Ltd. has completed its customary semi-annual redetermination of the borrowing base under its revolving credit facility, which has been set at $400 million. Current borrowings under the facility, which matures June 8, 2011, total $280 million. Excluding Lehman Brothers’ $12 million committed but unfunded share of the borrowing base, $388 million is currently available. In addition to its borrowing capacity, the company has $102 million of cash on hand.
