Sinopec and China Huadian acquire 15% stake in Petronas' Pacific NorthWest LNG project

• Sinopec and China Huadian, one of China's largest power companies, have agreed to acquire a 15% stake in Petronas' proposed Pacific NorthWest LNG project, BC
• The acquisition also includes the 15% associated interest in Petronas' Montney position
• Sinopec has also entered into a Heads of Agreement to purchase an additional 3mmtpa of LNG for 20 years sourced primarily from the Pacific NorthWest LNG project 
• Following Petronas' acquisition of Progress Energy in 2012 for CAD5.5bn, the company announced its intention reduce its exposure to the LNG project by divesting up to a 50% stake
• Divestments to date are Japex (10%), Petroleum Brunei (3%), Indian Oil (10%); post completion of the sale to Sinopec and China Huadian (15%), Petronas will retain a 62% stake in the project

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Encana divests more gas assets

• On 31 March 2014, Encaca sold its interests in the Jonah Field to TPG
• On 29 April 2014, Encana announced the sale of further gas assets in US L48 to an undisclosed buyer
• Encana has adopted strategy known as "Getting Back to Winning", focusing on liquids-rich opportunities/higher returns at times of weak gas pricing
• PE buyers continue to pick up gas assets - after low risk, long-lived cash generating assets, potential for cost efficiencies
• With absence of shareholder pressure, PE buyers can hold assets and take longer-term view on gas prices
• PE can also achieve higher returns as do not need to pay corporate tax (profits distributed directly to shareholders), similar to MLPs

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OMV farms-in to Tullow Madagascar blocks

• On 30 April 2014, OMV announced the acquisition of a 35% WI in Block 3109 (Mandabe) and Block 3111 (Berenty) from Tullow
• Tullow will retain 65% WI and remain Operator
• Block 3109: 2D to be shot in 2014
• Block 3111: First well to be spud in Q1 2015
• The acquisition continues OMV's strategy of "build[ing] up a new exploration business in the region of Sub-Saharan Africa"
• In August 2013, OMV farmed into a 40% WI in Niko's Grand Prix PSC, offshore Madagascar (Niko 35% WI), EnerMad (25% WI)
• In December 2013, OMV farmed into Ophir's exploration projects in Gabon:
• Mbeli (10% WI)
• Ntsina (10% WI)
• Gnondo (30% WI)
• Manga (30% WI)
• 3D seismic is planned on all the licences in 2014, with 1 well to be drilled on each of Mbeli, Ntsina and Gnondo
• In March 2014, OMV teamed up with Murphy Oil to acquire Blocks 2613A and 2613B, Namibia from Brazil's Cowan Petroleum; OMV acquired a 25% WI in the blocks, with Murphy taking 40% and Operatorship
• OMV's head of exploration and production, Jaap Huijskes, said in a statement at the time: "Offshore Namibia offers great exploration potential as it is largely unexplored, yet has all the elements of an effective hydrocarbon system"

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