April's top stories: Fluor to upgrade two refineries in Texas, ConocoPhillips to sell San Juan Basin assets
Fluor received a contract to upgrade two refineries in Texas, and ConocoPhillips agreed to divest San Juan Basin Assets to Hilcorp affiliate for $3bn. Hydrocarbons-technology.com wraps up the key headlines from April.
Marathon Petroleum Corporation (Marathon) unit selected Fluor Corporation to execute the engineering and procurement work for a major reconfiguration at its refineries in Galveston Bay and Texas City, Texas.
The value of the contract has not been disclosed.
Fluor will book the value of this contract into backlog in the first quarter of this year.
Oil and gas giant ConocoPhillips entered a definitive agreement to sell its interests in the San Juan Basin to an affiliate of Hilcorp Energy Company for up to $3bn.
Under the deal, Hilcorp Energy will pay $2.7bn in cash and the remaining $300m as contingent payment. The cash portion of the consideration is subject to customary closing adjustments.
The contingent payment needs to be paid in six years, beginning 1 January 2018.
The Northern Territory (NT) Government announced a contribution of $250,000 towards a feasibility study into the potential expansion of ConocoPhillips’ Darwin Liquified Natural Gas (DLNG), which could create thousands of jobs in the region.
The mandate of the study is to examine the viability of developing a second LNG train at the Darwin LNG plant at Wickham Point.
NT chief minister Michael Gunner said: “The Territory Labour Government is focused on restoring trust by creating jobs, especially in the private sector, and we believe funding this feasibility study is a good investment."
Blackstone Energy Partners and Blackstone Capital Partners signed a binding agreement to acquire EagleClaw Midstream Ventures for approximately $2bn.
The funds signed the agreement with EagleClaw Midstream Ventures and its financial sponsor, EnCap Flatrock Midstream.
The all-cash transaction deal is expected to be completed by the end of July and includes a loan worth approximately $1.25bn, provided by Jefferies.
Water treatment solution provider OriginClear partnered with a regional organisation in the Chinese province of Shandong for remediation of a Sinopec-operated shale gas site.
The pilot project at Sinopec's FuLing shale gas site in Chongqing, a major city in south-west China, is expected to take two to three weeks.
Sinopec energy saving and environment protection project site manager Dr Wang said: “As water quality regulations tighten and water becomes increasingly scarce, wastewater treatment technologies will become more of a necessity and less of a choice. This is the problem we are facing here on the FuLing site.
“We're proud to see OriginClear leading the way with a process that is chemical free and extremely energy efficient while simultaneously saving operators money.”
Indian Oil Corporation (IOCL) announced its plan to invest Rs54bn ($840m) on multiple infrastructure projects in Kerala, the southern state of India.
IOCL Kerala head P.S. Mony stated that the company has planned to develop a 600,000 metric tonnes capacity LPG import terminal at Puthuvypeen SEZ of Cochin Port Trust, reported IANS.
Construction of the terminal holds high importance as the domestic demand for LPG is rising at an increasing rate.
BP Trinidad and Tobago (bpTT) announced the start-up of the Trinidad Onshore Compression (TROC) project, which is expected to ramp up to full production over the next few months.
The TROC is one of the seven prominent upstream projects that the company has planned to bring online this year.
This onshore facility can deliver nearly 200 million standard cubic feet of gas per day when fully operational.
Exco Resources executed a definitive agreement with a subsidiary of Venado Oil and Gas, an affiliate of KKR, to sell its oil and natural gas properties in South Texas.
In this transaction, Exco Resources will receive $300m as consideration, subject to customary closing conditions and adjustments based on an effective date of 1 January this year.
The divested properties include Exco Resources’ interests in oil and natural gas assets in the Zavala, Frio and Dimmit counties of Texas. These properties produced nearly 4,100boe daily last December.
Oil and natural gas exploration and production company Anadarko Petroleum shut down 3,000 vertical gas wells across north-east Colorado in the aftermath of a fire tragedy in the town of Firestone that claimed the lives of two people.
The fire accident occurred on 17 April, approximately 200ft away from where the company operates an older, vertical well that was drilled by a previous operator in 1993.
In a response issued following the tragedy, the company said it is cooperating with fire officials and state regulatory agencies in their investigations.
Canadian-based oil and natural gas company Pengrowth Energy reached an agreement to sell the remaining portion of its Swan Hills assets in North Central Alberta.
Valued at $185m, the transaction marks Pengrowth's exit from the Swan Hills area.
The sales proceeds from this transaction, which is subject to customary closing conditions and adjustments, will be used by Pengrowth to reduce its level of debt.