OGInsights

Wednesday, 30 April 2014

Wednesday, April 30, 2014 No comments

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

Wednesday, April 30, 2014 No comments

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

Wednesday, April 30, 2014 No comments

On 30 April 2014, OMV announced the acquisition of a 35% WI in Block 3109 (Mandabe) and Block 3111 (Berenty) from Tullow

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"