This week’s biggest deal happened in Washington, DC, where the House and Senate finally reached an agreement to reopen the US government and raise the debt ceiling.
But there were also several energy-specific transactions and pending transactions that merited notice:
Mexico’s state-controlled oil and gas company Pemex has voided a tender for the second phase of the $1.8 bln Ramones pipeline – the country’s biggest pipeline project – to bring US natural gas to Mexico. Spain’s Enagas and France’s GDF Suez teamed up to bid on the project, but theirs was the only bid, and Pemex said it did not meet the project’s technical or economic specifications, according to Reuters.
Traders Glencore and Vitol are in fierce competition to buy Kazakh state-controlled Kazmunaigaz‘s share of oil from the giant Kashagan oil field in Kazakhstan, according to Bloomberg. KMG has a 16.8% stake in the $48 bln project, and the value of its share of the field’s crude is estimated at $1 bln. Kashagan had its second shutdown late last week, though it has only been producing for a little over a month.
The UK’s BG has agreed to sell its 50% stake in TGGT, a midstream joint venture with Exco Resources in east Texas and northern Louisiana, to Azure Midstream for $231 million, plus a $17 million stake in Azure, equivalent to about 4% of the company. The deal is subject to regulatory approval. Exco is selling its half of the venture to Azure under the same terms.
Japan’s Toyo Engineering has signed a deal with Japan Canada Oil Sands Limited to build a a 20,000 barrel per day Steam Assisted Gravity Drainage (SAGD) facility, expandable to 30,000 bbl/d, at the Hangingstone oil sands project in Alberta. China National Offshore Oil Corp (CNOOC) holds a 25% stake in Hangingstone through its purchase of Canada’s Nexen in February.
Russian energy minister Alexander Novak said he expects Russian state-owned gas giant Gazprom and Chinese state-controlled China National Petroleum Corp (CNPC) to finalize a gas supply deal by the end of this year, according to the Wall Street Journal. The two companies have signed initial agreements for Gazprom to supply CNPC with 38 billion cubic metres per year of gas, and have agreed on some specific parameters of the deal, but have not yet made it official.
Oklahoma-based Chaparral Energy will pay Cabot Oil and Gas $160.1 MM for 66,000 net acres in the Panhandle Marmaton Play. The acreage, which is producing around 2,000 barrels per day of oil equivalent, will double Chaparral’s holdings in the play.
China’s Export-Import Bank has agreed to provide Cambodian Petrochemical Company with funding for construction of a $1.67bln, 5 MM ton per year oil refinery in Cambodia.
Boeing and South African Airways have agreed to jointly develop a biofuels supply chain in Southern Africa. Boeing has developed similar partnerships in several other countries, including the US. This is its first in Africa.
