Here is a roundup of some of this week’s more interesting energy deals:
The BP-led Shah Deniz consortium signed a 25-year sales agreement for more than 10 billion cubic metres per year of natural gas from the second phase of development at the giant Shah Deniz field offshore Azerbaijan. Shah Deniz will deliver gas directly to Europe, bypassing Russia. A total of 16 bcm/year will be delivered through Azerbaijan, Georgia, Turkey, Greece, Bulgaria, and Albania to end-users. The contracts – with companies such as Italy’s Enel SpA, Germany’s E.On, France’s GDF Suez and UK-Netherlands’ Royal Dutch Shell – are valued at over $100 billion, according to the Wall Street Journal.
For more on this see, Hooray for European Natural Gas Supply Diversity, But First Close the Deal
Uganda awarded its first oil production license to China National Offshore Oil Corp. in a $2 billion deal for the 635 million barrel Kingfisher field. Chinese national oil companies have been major investors in Africa’s oil sector.
Solazyme has signed an agreement to sell around 3 million gallons of algae-derived oil to Unilever over a 12-18 month period for an unspecified sum. Solazyme was conceived as a venture to produce algae-based biofuels – and inked a drop-in biodiesel development and testing deal with Chevron Technology Ventures in 2008 – but the company expanded into other sectors, such as cosmetics, to shore up revenues until it develops a renewable fuel that can compete with their petroleum-based counterparts.
Germany’s Wintershall has signed an oil exploration and development deal with Gas y Petroleo de Neuquen in the Vaca Muerta shale in Argentina’s Neuquen Basin. Details in media reports vary, but SeeNews – which reported deal particulars more clearly than other news sources – says that Wintershall will provide $150 million for exploration, and development costs will total about $3.35 billion. (Watch out, Wintershall…a recent deal struck between Argentina’s recently-nationalized YPF and Chevron in Neuquen has sparked protests).
And this isn’t a deal yet, but both the Wall Street Journal and Natural Gas Europe are reporting that Spain’s Repsol is looking to buy a North American oil and gas producer, preferably one that produces more oil than gas. Apparently the company has $5-10 bln burning a hole in its pocket following the sale of more than $6.6 billion in LNG assets to Shell.
First Solar and K Road Power Holdings announced Thursday that First Solar acquired the 250 megawatt (MW) photovoltaic Moapa Solar Project in Nevadafrom K Road. The project is in an advanced stage of development, and has a 25-year Power Purchase Agreement (PPA) with the Los Angeles Department of Water and Power (LADWP).
