Chevron has signed a $10 bin, 50-year agreement with the government of Ukraine to explore for and develop oil and gas in the Olesska field in the western part of the country. Chevron is expected to spend $350MM for exploration over two to three years. Ukraine has a strong interest in developing its domestic resources as a means of reducing its dependence on Russia as a supplier.
Microsoft has signed a 20-year deal to buy 100% of the power produced by the 110 MW Keechi wind farm near Fort Worth, Texas in its first direct renewable power purchase. The deal is being funded in part by an internal company tax on departments per ton of carbon produced. Keechi is scheduled to begin operating by June 2015.
Italy’s Eni will pay US independent Quicksilver Resources up to $52 MM for a 50% stake in Quicksilver’s acreage in the Leon Valley in West Texas, and the two companies have agreed to joint exploration of the project. Eni and Quicksilver formed a strategic alliance in US unconventional onshore oil and gas in 2009.
French utility EDF has agreed to buy the 200MW Longhorn wind project in Texas. Construction is expected to begin before 2014 in order to quality for the wind production tax credit.
Encana plans to spin off its interest in 5 million acres in southern Alberta into a separate company that will hold an initial public offering by mid-2014, lay off about 20% of its workforce, cut its dividend and focus on oil and liquids plays. The company previously spun off its oil sands segment – now called Cenovus – to focus on natural gas. But natural gas prices have not been conducive to profitability.
Jiangsu Shungfeng Photovoltaic Technology has agreed to buy Wuxi Suntech Power for $492 million, according to Bloomberg. According to PV magazine, Shunfeng may have to pay an additional $25 MM to an investment vehicle owned by local Wuxi authorities, in addition to other fees. A Bloomberg New Energy Finance analyst posited that “the acqusition is mainly for brand and research people”.
Linn Energy has lifted its purchase price for Berry Petroleum by $600 MM to $4.9 bln. The adjustment in the stock-for-stock acquisition was caused by a decline in Linn’s share price.
Oilfield services firm Weatherford is spinning and auctioning off business lines, such as international drilling rigs and drilling fluid systems. The company will focus on its most profitable areas, such as boosting yield from mature wells. “The company has grown rapidly through more than 100 acquisitions across two decades, but ran into problems which Mr. Duroc-Danner has said were symptoms of its overly hasty expansion. Those included accounting and tax errors in addition to charges of violating U.S. law abroad,” writes Alison Sider in the Wall Street Journal.
The governments of Canadian provinces Alberta and British Columbia have signed a framework agreement on transportation of energy resources to new markets. The agreement terms entail Alberta committing to BC conditions on economic benefits and risk mitigation, and BC allowing Alberta ship more of its oil and gas production west through BC. Alberta has vast oil sands and and natural gas resources, and needs additional outlets to get production to consuming markets.
US independent Penn West has reached agreement to sell properties producing a combined 12,500 barrels per day of oil equivalent for $485 million.
Power and automation technology firm ABB has won an $80 MM contract from Canadian Solar Solutions to supply a 100 MW solar PV project for the Grand Renewable Energy Park in Ontario. The plant is part of Samsung Renewable Energy‘s $5 bin investment program in a group of wind and solar projects that will produce a combined 1,369 MW of renewable energy.
US independent SM Energy is selling its properties in the Anadarko Basin to EnerVest for $343m in cash.
