Support for the Danish DUC

On Wednesday 21st September Lars Christian Lilleholt, the Danish energy minister said that the government is determined to find an economically viable solution that will allow the Trya complex to continue production. This follows Maersk Oil’s announcement in April that it would cease production at the Tyra complex if no solution to extend its economic life during 2016. The Tyra complex is operated by Maersk Oil on behalf of the DUC, a partnership...

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Canacol doesn’t lose sleep over oil prices

Canacol is distinct from its Colombian E&P peers‎, being a gas-weighted producer with operations focussed in the Lower Magdalena Basin. Its gas operations and gas offtake contracts mean that the company has a much lower exposure to oil prices. In the company's recent investor update, it noted that it would generate EBITDA of USD107 million if the oil price was zero! Given this special situation within the Colombian and wider international...

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Shell Gulf of Mexico divestment

On 29th August, Shell announced that it had agreed to sell 100% of its interests in the Gulf of Mexico Green Canyon Blocks 114, 158, 202 and 248 (the Brutus/Glider assets), to EnVen Energy Corporation for USD425 million in cash. These assets do not appear to form part of Shell's core strategy in the region, with recent activity focusing on the Mars/Vito/Na Kika areas to the east. The Brutus/Glider assets include the Brutus Tension Leg Platform,...

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Kurdistan consolidation? DNO's proposed offer for Gulf Keystone

On Friday 29th July, DNO made a proposal to acquire Gulf Keystone for USD300 million in cash and shares. The tactics around the timing of this offer are unclear, given that Gulf Keystone are part way through a creditor restructuring. Negotiations during creditor processes are generally messy with the potential acquirer having to become involved in discussions with the debt holders, who hold significant power given their ability to "pull the plug" on the distressed company and/or dictate restructuring terms that lead to massive dilution of the existing...

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Gulf Keystone debt restructuring

On 14th July, Gulf Keystone announced the terms of its proposed balance sheet restructuring, marking the culmination of months of discussions with the company's debt holders. The restructuring, if approved by shareholders, will be implemented by way of a debt-for-equity swap and will see existing shareholders significantly diluted. The company has c.USD600 million of debt, comprising USD335 million of Convertible Bonds and USD266 million...

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Brasse - Brage's younger sibling

On 11th July, Faroe announced the completion of a successful side-track appraisal well on the Brasse discovery in PL740 (50% WI) in the Norwegian North Sea and revised volume estimates for the discovery. The objective of the Brasse side-track well was to appraise the south-eastern part of the structure previously identified by the main discovery well. The side-track reached a depth of c.2,530m and encountered a 25m gross oil column and a 6m gross...

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Det Norske-BP: the Norwegian megaforce

On 10th June, Det Norske announced that it will merge with BP Norge through a share purchase transaction to create the leading independent E&P company on the Norwegian Continental Shelf. The company will be renamed Aker BP, with Aker and BP as main industrial shareholders holding 40% and 30% of the company respectively; the remaining 30% in Aker BP will be held by Det Norske’s other current shareholders. Note that Aker is currently Det Norske’s...

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