Energy Deals of the Week

on October 04, 2013 at 1:00 PM

Gulf Oil Spill Begins To Reach Land As BP Struggles To Contain Leak

Japan’s Tohoku Electric Power Company has agreed to buy 0.9 million tons per annum of LNG for 20 years from the 8.9 mtpa, Chevron-operated Wheatstone LNG project in Australia. Other committed buyers for Wheatstone production include TEPCO, Kyushu Electric Power Company and Chubu Electric Power Company. First LNG is scheduled for 2016.

US independent Apache completed the sale of assets on the Gulf of Mexico shelf to Fieldwood Energy – a part of private equity firm Riverstone Holdings‘ portfolio – for $3.75 billion in cash, plus the assumption of $1.5 bln in liabilities for future abandonment costs. Apache bought up a bunch of Gulf of Mexico shelf properties in 2010 through a $1 bln deal with independent Devon and the acquisition of independent Mariner.

CNBC reported earlier this week that Aubrey McClendon was about to close on a deal to raise $1.8 billion in equity and debt financing for his  new E&P company, American Energy Utica. On Tuesday, American Energy-Utica announced a new joint venture in the Utica shale with Red Hill Development.

The UK’s BG and two master limited partnerships collectively known as Energy Transfer have agreed to jointly develop the Lake Charles LNG export project, which received Department of Energy approval for exports to non-free trade agreement countries in August. The three-train project will build on existing storage and marine berthing facilities owned by Energy Transfer subsidiary Trunkline. A final investment decision for the project is anticipated in 2015.

Sweden’s Lundin Petroleum and trader Gunvor have agreed to sell 51% of Petroresurs – which owns the Lagansky block in the Russian sector of the Caspian – to Russian oil giant Rosneft. “[Rosneft head] Sechin gave no financial details,” according to Reuters. Lundin and Gunvor held 70% and 30% of Peptroresurs respectively. Lundin will retain 34.3% of the Lagansky block.

Poland’s state-controlled oil and gas company PGNiG has agreed to supply the country’s biggest utility, PGE, with 281 million cubic meters per year of natural gas for the Gorzów CHP plant for 20 years. PGNiG is also leaving Libya and Egypt.

India’s Essar has announced plans to sell its 50% stake in the KPRL refinery in Mombasa, Kenya to the Kenyan government for $5 million. Essar bought the stake from BP, Chevron and Shell in 2009 for $7 MM.

Finally, in the Falklands – site of one of my favorite territorial disputesFalkland Oil & Gas has announced a deal to buy Desire Petroleum for roughly $98 MM in a bid to re-start drilling in the area. Past exploration efforts have not always borne fruit.