Chevron Corp.'s subsidiary, Chevron Australia Pty Ltd., has produced first gas from the North West Shelf Venture's Train 5 onshore liquefied natural gas (LNG) facility at the Karratha Gas Plant in Western Australia.
The US $2.1 billion is expected to increase the joint venture's export capacity by up to 4.4 million tonnes of LNG annually to 16.3 million tonnes.
The Train 5 expansion includes: a fifth LNG processing train, a jetty extension and second LNG loading berth, two additional power generation units, a third LPG fractionation unit, a new fuel gas compressor, an acid gas removal unit and a third boil off gas compressor.
Chevron holds a one-sixth interest in the joint venture. In addition to Chevron's subsidiary, Chevron Australia Pty Ltd., the other North West Shelf venture participants also holding a one-sixth interest are: BHP Billiton (North West Shelf) Pty Ltd., BP Developments Australia Pty Ltd., Japan Australia LNG (MIMI) Pty Ltd., Shell Development (Australia) Proprietary Ltd., and Operator Woodside Energy Ltd. CNOOC NWS Private Ltd. is also part of the venture but does not have an interest in its infrastructure.
Stone Energy closes Bois d'Arc acquisition
Stone Energy Corp. has completed its acquisition of Bois d'Arc Energy Inc. Stone paid approximately $935 million in cash and issued approximately 11.3 million shares in connection with this transaction. Stone funded the cash portion of the acquisition with cash on hand of approximately $510 million and borrowings of $425 million under its newly amended and restated $700 million credit facility.
Comstock Resources Inc. sold its 49% interest in its subsidiary Bois d'Arc to Stone pursuant to the previously announced merger between Stone and Bois d'Arc. Comstock received $440 million in cash and 5,317,069 shares of common stock of Stone. Comstock used the cash proceeds to repay amounts outstanding under its bank credit facility.
David Welch, president and CEO of Stone, stated, "The acquisition of Bois d'Arc will provide Stone with a substantial inventory of exploration and exploitation projects. We expect to move quickly to absorb operations and to accelerate our combined drilling program. We welcome those Bois d'Arc employees who have elected to join Stone, and we also look forward to working with Gary Blackie and his exploration group through our new participation agreement with Bois d'Arc Exploration LLC."
Comstock holds a 13% ownership interest in Stone Energy. M. Jay Allison, CEO of Comstock, stated, "The completion of this transaction allows Comstock to focus entirely on growing its onshore operations and provides additional capital to develop our leasehold position in the emerging Haynesville shale gas play in East Texas and North Louisiana."
Osum Oil Sands closes C$275M private equity financing
Osum Oil Sands Corp. has closed a private equity financing for C$275 million at a price of C$10.50 per share. The financing was led by Warburg Pincus LLC and included a substantial investment by Blackstone Capital Partners V LP.
Osum's chairman and CEO, Richard Todd, anticipates using the funds to continue commercial production from the Cold Lake bitumen project of roughly 35,000 b/d, and to pilot production at its Saleski project in the Wabasca region of Alberta.
The company is adding Jeffrey Harris and David Krieger, both managing directors of Warburg Pincus, and David Foley, senior managing director of Blackstone, to its board of directors. Directors Simon Clark and Gerry Stephenson have agreed to step down from the board and will join Osum's newly formed board of advisors.
The Sterling Group completes sale of Hudson Products Holdings
The Sterling Group LP, a middle-market private equity firm based in Houston, has finalized the sale of Hudson Products Holdings Inc. to Riverstone Holdings LLC.
Hudson Products designs and manufactures air-cooled heat exchanger equipment to serve the oil, gas, and petrochemical processing industries. The Hudson sale represents the first sale of a portfolio company in Sterling Group Partners II, a $470 million fund controlled by The Sterling Group LP.
Riverstone Holdings LLC, is an energy and power-focused private equity firm with approximately $14.8 billion under management across six investment funds.
AMEC wins five-year consultancy contract in Abu Dhabi
AMEC plc, the international engineering and project management company, has been awarded a five-year program management consultancy (PMC) contract by Zakum Development Co. (ZADCO) in Abu Dhabi, United Arab Emirates.
The reimbursable contract is estimated to be worth US $75 million over the five years – the largest oil-related PMC contract ever awarded by ZADCO.
AMEC will provide engineering, consultancy, and project management services extending from concept stage through front-end engineering design (FEED), design, construction, and commissioning of several projects on the multi-billion dollar Upper Zakum full field development program. The program began in 2007 and is expected to be completed by 2013.
Aker snags Daewoo drilling equipment contract
Aker Solutions has been awarded a drilling equipment contract by Daewoo Shipbuilding and Marine Engineering (DSME) in Korea for a new semi-submersible drilling rig. The total contract value for Aker is roughly US $105 million.
The scope of work is to deliver a complete drilling equipment package including installation and commissioning supervision. The semi submersible drilling rig is scheduled for delivery Q2 2011.
Qatar Petroleum taps CGGVeritas for $140M seismic work on Dukhan
CGGVeritas has been awarded a contract by Qatar Petroleum to undertake a large, ultra high-density high-resolution onshore seismic survey with an expected value of roughly $140 million. Work will begin around year-end 2008 and is anticipated to have a duration of about 30 months.
The survey will cover the Dukhan field in Qatar that extends under desert plains, coastal salt flats, transition zones, and shallow water areas.
Pride's new ultra-deepwater drillship set for delivery in 2011
Pride International Inc. has placed an order for the construction of a fourth advanced-capability, ultra-deepwater drillship. The latest drillship will be constructed at the Samsung Heavy Industries Ltd. (SHI) shipyard in Geoje, South Korea on a fixed-price basis and is expected to be delivered in the fourth quarter of 2011.
The rig, which will be initially equipped for drilling in water depths of up to 10,000 feet, will also have expanded drilling fluids capacity, a 1,000 ton capacity hoisting system and living quarters for up to 200 personnel.
The expected construction cost of the rig, including commissioning and system integrated-testing and excluding capitalized interest, is approximately $745 million. The company expects to fund the construction of the unit with available cash, cash flow from operations, and borrowings.
Swift to purchase Dimmit County interests from privately-held Crimson
Houston-based Swift Energy Co. has signed an agreement to purchase from Crimson Energy Partners, LP, a privately held company, oil and natural gas interests in Dimmit County in South Texas for $47 million.
The interests in Crimson's Briscoe "A" lease and wells are located on 5,140 acres adjacent to existing Swift Energy production in its Cotulla area.
Swift currently estimates that total reserves of the purchased properties are roughly 13 bcfe of proved reserves and three bcfe of probable reserves. Approximately 70% of the proved reserves are classified proved developed.
Future development costs of both the proved undeveloped and probable reserves are estimated to be approximately $12.5 million for an all-in acquisition cost of $3.72 per Mcfe of proved and probable reserves. Production is approximately 90% natural gas and natural gas liquids and averaged approximately 3.7 MMcfe/d net to the purchased working interests for the first seven months of 2008.
Swift will acquire a 100% working interest in all of Crimson's operated wells in the lease and will serve as operator of the property. The purchase price will be funded with bank borrowings under the company's bank credit facility.
MODEC to supply pilot FPSO for Petrobras' Tupi field
Petrobras has signed a letter of intent for the supply, charter, and operations of a Floating Production, Storage and Offloading (FPSO) vessel for the Pilot FPSO on the giant Tupi Area in the Santos Basin. The contract is for a 15-year lease with five one-year options.
MODEC is responsible for the engineering, procurement, construction, mobilization and operations for the FPSO, including topsides processing equipment, hull and marine system. SOFEC will design and provide the spread mooring.
This is the sixth vessel MODEC will provide and operate in Brazil. It is the first permanent FPSO to operate in the Tupi area.
FMC taps Express Engineering to supply subsea equipment
FMC Technologies has appointed Express Engineering to project manage and supply subsea tubing hanger kits to its manufacturing facilities in Dunfermline. The contract is for two years and £2 million.
Protec grabs financing for oil, gas projects in Ukraine
Protec Industries Inc. has arranged the financing for both Ukraine oil and gas projects.
Protec has negotiated and signed a Farm-Out Joint-Venture (JV) Letter Agreement with Eurofund Capital Management Co. Ltd. and a third party whereby the company's new JV partners pay 100% of Protec's working interest to earn 50% of Protec's revenue share and an option to participate with Protec in any new oil and gas projects in which Protec acquires an interest.
The JV requires Protec's new partners to issue an irrevocable Letter of Credit for $30 million. As operator, Protec will immediately draw the first tranche of $1 million to begin funding the Ukraine projects.
Neptune secures funding, $75M charter for new support vessel
Neptune Marine Services Ltd. has accepted an offer of debt funding for the purchase of the dynamically positioned (DP2) vessel, Nor Sea.
The debt facilities will be provided by National Australia Bank Ltd. The primary facility for the purchase will be a three year commercial bill facility.
Neptune expects to take delivery of the vessel during the second half of September from which time it will incur immediate financial return stemming from a charter (five months with an option to extend a further two) for an Australian geotechnical data services company valued at approximately $7.5 million.
Canadian Superior enters $35M private placement
Canadian Superior Energy Inc. has entered into an agreement for a non-brokered private placement offering in the amount of US$35 million. The offering will be by way of the issuance of 8,750,000 individual Units at a price of US $4.00 per Unit and has been fully subscribed by three of our existing shareholders.
Proceeds of the offering will be used to fund Canadian Superior's exploration spending and new business development activities.
Sagex completes private placement
Sagex Petroleum ASA has announced the completion of a private placement in two rounds during the summer 2008, raising a total of NOK 160 million in new equity.
The funds will be used towards planned exploration activities until the company has revenue from the Causeway oil field on the UK Continental Shelf late 2009.
The managers for the fundraising were First Securities, Tristone Capital and Landsbanki Islands.
J-W Wireline closes acquisition of Meeks Wireline
J-W Wireline Co. has acquired the business, assets, and personnel of Meeks Wireline Services Inc. for an undisclosed amount of cash. Meeks Wireline Services is an independent cased-hole wireline company servicing the Appalachian Basin.
Meeks Wireline Services has eleven trucks operating out of two bases in Weston, WV and in Hager Hill, KY. The company is headquartered in Dunbar, WV. The company has approximately fifty employees that are all now a part of the J-W Wireline Co. team.
American to receive $27M from Douglas Project sale
Denver-based American Oil & Gas Inc. has entered into a definitive agreement with a major independent natural gas producer to sell 36,000 net acres in its 128,000 gross (70,000 net) acre Douglas project area for roughly $27 million.
Of the 36,000 net acres, 33,000 net acres are located in the West Douglas and Douglas project areas and 3,000 acres are located on the far western edge of the Fetter project area. Included in the sale is American's carried interest in the State Deep 7-16 well that is currently in the process of being completed at West Douglas.
TWMA opens new Stavanger office
International environmental services company TWMA, headquartered in Aberdeen, has opened a new office in Stavanger to service increasing business from within the Norwegian market.
The office is located at Tananger and will support the company's existing operational base in Mongstad which has a team of more than 25 personnel.
TWMA's expansion also includes the addition of a number of new services to its portfolio. TWMA can provide a wide spectrum of specialist services for a variety of rig issues ranging from cleaning operations to decommissioning.
Alongside the introduction of the new services, TWMA recently launched a mobile version of the company's TCC-RotoMill technology – the TCC RotoTruck – which can go anywhere in the world in any conditions to treat contaminated drill cuttings.
AmeriWest to gain acreage at Geary prospect
Ameriwest Energy Corp. has formally advised Muddy Mineral Exploration LLC of Casper, Wyoming of its intent to exercise its right to purchase certain oil and gas mineral leases adjoining Ameriwest's recent Geary Prospect acquisition.
Muddy Mineral has presented the highest bid in auction to the US Department of the Interior's Bureau of Land Management for the purchase of a 10 year Federal mineral lease on approximately 240 acres of land mainly located within the Area of Mutual Interest identified as the Geary Prospect lands located in Natrona and Converse Counties, Wyoming.
Muddy Mineral had extended an offer of first right of refusal to Ameriwest on an 80% Net Revenue Interest basis subject to the successful issuance of the Federal lease. This offer has been accepted by Ameriwest and upon completion will expand its holding in the Geary Prospect to approximately 3,040 gross acres.
Stealth, BlackWatch shake on drilling deal
Stealth Ventures Ltd. has entered a long-term operating agreement which will give BlackWatch Energy Services Trust a right of first refusal for providing drilling rig services for Stealth's shale gas development program in the Wildmere region of Alberta for the remainder of 2008 and all of 2009. In return Stealth has been given preferred fixed pricing for the 08 and 09 drilling campaigns.
To date the program has been drilling ahead of schedule and under budget with 27 of the scheduled 70 wells completed and frac and tie-in operations on the way.
Oilexco enters LOI with Bluewater to deploy FPSO at Huntington
Oilexco, the operator of the Huntington field in the UK, where Noreco owns a 20% share, has entered into a letter of intent with Bluewater for deployment of the Floating Production, Storage, and Offloading vessel (FPSO) Glas Dowr at the Huntington field in the North Sea.
The deployment of the Glas Dowr FPSO is subject to a final agreement between the parties.
Petrofac acquires production technology company, forms JV with Mubadala
Petrofac has acquired Caltec Ltd. for £15 million, payable in cash, subject to adjustment for surplus cash as at completion. Further consideration of, in aggregate, up to £15 million will be payable in cash and/or shares over the next five years, subject to the achievement of certain agreed performance targets.
Caltec, majority-owned by its management and employees, is a specialist production technology company with products aimed at the enhancement of production from mature fields.
Petrofac has also recently formed a joint venture with Mubadala Petroleum Services Co. LLC (MPSC). The joint venture company, Petrofac Emirates LLC, will be based in Abu Dhabi and is scheduled to begin operation within the next few months. The new company will provide a full range of engineering, design, procurement, and construction services for onshore oil and gas, refining and petrochemical projects throughout the United Arab Emirates.
Expro, Talisman enhance relationship with North Sea contract
International oilfield service company Expro has been awarded a major North Sea contract with Talisman Energy (UK) Ltd. for slickline, well testing, and subsea landing string services on Talisman's platforms and modules.
The deal is estimated to be worth roughly £32million and will span a five-year period. Expro will provide mechanical wireline intervention services, subsea safety systems, including its large bore landing strings, and drill stem testing well test and clean-up packages.
The contract will give Talisman Energy UK access to the company's range of products.