Anadarko Petroleum to sell Marcellus Shale natural gas assets
Anadarko Petroleum has agreed to sell its operated and non-operated upstream assets and operated midstream assets in the Marcellus Shale of north-central Pennsylvania to Alta Marcellus Development LLC, a wholly owned subsidiary of Alta Resources Development LLC, for approximately $1.24 billion. The midstream assets in the Marcellus owned by Western Gas Partners LP, Anadarko's sponsored master limited partnership, are excluded from the agreement.
With the transation, the company has announced or closed monetizations in excess of $5 billion in 2016, said Al Walker, Anadarko's chairman, president and CEO.
The Marcellus Shale divestiture includes approximately 195,000 net acres and, at the end of the third quarter of 2016, sales volumes from these properties totaled approximately 470 million cubic feet per day.
The transaction is expected to close during the first quarter of 2017, subject to customary closing conditions and adjustments. Jefferies LLC marketed the assets, and Sidley Austin LLP served as Anadarko's legal counsel.
Chesapeake sells second Haynesville acreage position for $465M
Chesapeake Energy has signed an agreement to sell a portion of the company's acreage and producing properties in its Haynesville Shale operating area in northern Louisiana for approximately $465 million to an affiliate of Covey Park Energy LLC. The sale includes approximately 41,500 net acres and 326 operated and non-operated wells currently producing approximately 50 million cubic feet (MMcf) of gas per day, net to Chesapeake.
FIRST RESERVE INVESTS $250M IN TEXAS AMERICAN RESOURCES
First Reserve has committed up to $250 million in private equity capital to Texas American Resources Co. LLC to support the company's pursuit of oil development opportunities in the Eagle Ford Shale in South Texas.Founded in 1991, Texas American has a long history of oil and natural gas exploration and production operations. Concurrent with the closing of First Reserve's investment, the company acquired an initial leasehold position in the black oil window of the Eagle Ford trend in Atascosa County, Texas, covering approximately 12,000 acres. The company plans for development drilling to begin in the first quarter of 2017. It also plans to acquire and develop a portfolio of properties that combine existing production with significant remaining undrilled locations.
CENTENNIAL PAYS SILVERBACK $855M TO ACQUIRE REEVES COUNTY ASSETS
Centennial Resource Development Inc. and its affiliates have agreed to acquire 100% of the leasehold interests and related upstream assets in Reeves County, Texas, from Silverback Exploration LLC. An affiliate of Riverstone Holdings LLC entered into a purchase agreement with Silverback to acquire 100% of its leasehold interests and related upstream assets in Reeves County, Texas, for an aggregate purchase price of $855 million in cash, subject to certain adjustments. On Nov. 27, 2016, Riverstone and Centennial entered into an agreement to assign, under which the Riverstone affiliate has agreed to assign, and Centennial has agreed to assume, Riverstone's right to purchase the Silverback assets, subject to the satisfaction of certain conditions. The acquisition is expected to close on Dec. 30, 2016.
Mark Papa, CEO of Centennial, commented, "We are very excited to announce our agreement to acquire the Silverback assets. While we did not expect to make such a significant acquisition so quickly, we could not pass up the opportunity to accretively add core acreage offsetting our existing Centennial assets at such a compelling price. Pro forma for the transaction, Centennial will be one of the largest operators in the Delaware Basin, with over 77,000 contiguous net acres. This transaction increases our horizontal drilling inventory by 44% and more than doubles our inventory of extended length laterals, which we believe provides the most capital efficient development. Furthermore, this transaction allows us to increase our 2020 oil production goal from 30,000 Bo/d to 50,000 Bo/d, all the while maintaining one of the lowest debt levels in the industry. Finally, we appreciate the continued support of our institutional shareholders, including Riverstone, and look forward to developing this high-quality asset base."
EXXONMOBIL AWARDS KEY CONTRACTS FOR LIZA OIL DEVELOPMENT IN GUYANA
ExxonMobil subsidiary Esso Exploration and Production Guyana Limited (EEPGL), has awarded contracts to SBM Offshore for a floating production, storage and offloading (FPSO) vessel, a key step in moving the Liza field toward first production. Under the contracts, SBM Offshore will perform front end engineering and design for the FPSO, and, subject to a final investment decision on the project in 2017, will construct, install and operate the vessel. "Liza development activities are steadily progressing, and we're excited to reach this important milestone," said Neil Duffin, president of ExxonMobil Development Company.
ExxonMobil submitted an application for a production license and its initial development plan for the Liza field in early December. The development plan, submitted to the Guyana Ministry of Natural Resources, includes development drilling, operation of the FPSO, and subsea, umbilical, riser, and flowline systems.The Liza field has a potential recoverable resource estimate in excess of 1 billion oil-equivalent barrels and is located in the Stabroek block approximately 120 miles (193 kilometers) offshore Guyana. The Stabroek block currently comprises 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is the operator and holds a 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30% interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25% interest.
COLORADO COMPANY HAS ALTERNATIVE TO WASTE DISPOSAL INJECTION WELLS
The recent dramatic increase in man-made earthquakes in the United States is alleged to be triggered by the use of deep waste disposal injection wells to dispose of salty, toxic waste water produced by the oil and gas industry. A Colorado company, Oilfield Clean Energy Solutions Inc., says it has developed a proprietary surface waste disposal system that would solve these seismic concerns. Engineers at OFCES have developed a waste disposal system utilizing a technology that disposes of the waste above ground, thus eliminating any need for waste water injection wells. The company says this eliminates potential risks to the purity of the water table and also abates all surface emissions, including particulates. Tom Lewis, CEO of OFCES, said, "We are pleased to deliver such a positive geologic benefit arising from our efforts to support oil and gas producers by creating efficiencies and cost savings while eliminating environmental waste. Our technology demonstration site in Platteville, Colo., is scheduled to be completed in late December (weather permitting) with oil and gas company and industry regulator on-site demonstrations beginning in early January." For more information, go to http://www.ofces.com.
CATERPILLAR EXPANDS WELL SERVICES WITH KEMPER VALVE ACQUISITION
Caterpillar Oil & Gas has completed the acquisition of Kemper Valve & Fittings Corp. Headquartered near Chicago, Kemper has been manufacturing and selling high and low pressure pipe unions and related oilfield fluid control products in the United States since 1965. The company has nine facilities located across the US and Canada. Caterpillar Oil & Gas is headquartered in Houston.
SCHNEIDER ELECTRIC COLLABORATES WITH HALLIBURTON'S LANDMARK
Schneider Electric, the global specialist in energy management and automation, has agreed to a collaborative project with Landmark, a Halliburton business line and major provider of integrated E&P software. The ongoing project aims to provide total transparency to E&P decision makers-from oil field to board room-with a real-time, integrated view of their business' performance. For E&P companies, performance is correlated with detailed technical, operational, and economic knowledge of the assets in their portfolios. Schneider Electric is coming together with Landmark to connect Schneider Electric's IoT-enabled open and interoperable system architecture and platform EcoStruxure with Landmark DecisionSpace®, allowing companies to build a real-time digital representation of individual assets and the overall portfolio.
Together, Landmark and Schneider Electric are delivering integrated and commercially impactful workflows designed for E&P lifecycle management.
"To undertake these projects, operators require technology and commercial terms that work within their business constraints-no IT system overhauls or huge outlays of capital to occur before value is demonstrated," says Nagaraj Srinivasan, senior vice president of Landmark and Halliburton Digital Solutions.
The joint work extends to various aspects of upstream operations, including operations management, production surveillance, and production automation.
MURPHY AWARDS GOM CONTRACT TO SUBSEA INTEGRATION ALLIANCE
Murphy Exploration & Production Co. - USA, a subsidiary of Arkansas-based Murphy Oil Corp., has awarded a contract for the industry's longest deepwater subsea multiphase boosting tieback to Subsea Integration Alliance. The award is for the industry's first deepwater integrated subsea engineering, procurement, construction, installation, and commissioning (EPCIC) multiphase boosting system.
This is the first EPCIC project award for Subsea Integration Alliance, which was formed July 2015 between OneSubsea, Schlumberger, and Subsea 7. The scope of the contract calls for the supply and installation of a subsea multiphase boosting system for the Dalmatian Field in the Gulf of Mexico. This includes topside and subsea controls, as well as a 35 km integrated power and control umbilical. The alliance enables a turnkey integrated project from design through supply, installation, and commissioning. Offshore installation activities are scheduled for 2018.
MARSOL INTERNATIONAL opens NEW OFFICE IN ABU DHABI
Marsol International, a UAE-based global marine solutions provider focused on the offshore oil terminal market and related infrastructure, has opened a new office, Marsol International Abu Dhabi. The facility strengthens Marsol's presence in the UAE region and increases the company's capabilities for directly servicing Abu Dhabi-based clients. Marsol has already undertaken several projects from the facility, including offshore hose studies involving modeling, inspection and repair operations, Emergency Pipeline Repair Service (EPRS) support, and tanker terminal assessments for major companies in the area, as well as undertaking the Oman Oil Company Exploration & Production LLC's first two shipments of crude oil from the Musandam gas plant. Marsol International provides operational engineering and management solutions to clients, consultants, and EPC contractors for new offshore terminal facilities, and operational integrity management and IRM services of existing facilities to offshore terminal owners and operators.
