November’s top stories: Devon acquires Eagle Ford, CEPSA to acquire Coastal

Devon Energy acquires GeoSouthern’s Eagle Ford oil play assets for $6bn

Devon Energy has acquired GeoSouthern Energy’s assets in the Eagle Ford oil play in DeWitt and Lavaca counties in Texas for $6bn.

Devon Energy has purchased assets including existing production of 53,000 barrels of oil equivalent (boe) a day and 82,000 net acres with at least 1,200 undrilled locations.

Devon Energy president and chief executive officer John Richels said that the acquisition will add another low-risk light oil asset to the company’s North American portfolio.

CEPSA to acquire Coastal Energy for C$2.3bn

Energy group Compañia Española de Petroleos (CEPSA) has signed an agreement to acquire the shares of US-based Coastal Energy for C$2.3bn, including C$51m of net debt.

According to CEPSA, the purchase price represents a premium of 28% over the closing price of Coastal’s shares on 18 November.

The acquisition will be made through a company created by CEPSA and Strategic Global Resources (SRG), where CEPSA will own a majority interest.

Alabama train accident leads to explosion and oil spil

A train carrying crude oil has derailed in western Alabama, spilling oil and leaving 11 carriages burning in the area.

The 90 DOT-108 carriages that were hauled by the train were carrying 30,000 gallons of crude, or 64,000 barrels in all. Of the carriages, 25 derailed and threw flames 300ft into the sky, which were left to burn down for 18 hours by rail operator Genesee & Wyoming.

According to officials, an unknown amount of crude oil spilled into an adjacent marshland, but has now been contained.

Gazprom to invest $13.5bn in Vladivostok LNG plant

Gas producer Gazprom has announced plans to invest $13.5bn in its liquefied natural gas (LNG) plant near the city of Vladivostok in Russia.

As well as improving the plant, the money will also be spent on infrastructure such as a port, gas pipeline and power station.

A special-purpose company Gazprom LNG Vladivostok has been set up to implement the project, which is expected to be completed in the third quarter of 2014.

Chevron LPG pipeline explodes in Texas

US energy firm Chevron has reported an explosion at its liquid petroleum gas (LPG) pipeline near Milford, Texas, prompting evacuations.

Hill County Emergency Management director Tom Hemrick told KTVT-TV in Dallas that the explosion was caused by a construction crew that accidentally drilled into a 10in LPG line.

"The fire is definitely getting smaller," Hemrick added.

Chevron has established a 1.5-mile evacuation zone around the site of the fire and asked 700 residents of Milford to evacuate their homes.

Petrofac awarded $2.1bn refinery contract

Oil and gas services provider Petrofac has secured a $2.1bn engineering, procurement and construction (EPC) contract from Oman Oil Refineries and Petroleum Industries (ORPIC).

The contract includes improvements at the existing facility originally constructed and commissioned in 2006 and adding new refining units. The facility is located in the Sohar Industrial Area, 230km north west of Muscat.

Petrofac secured the 36-month contract in a 50/50 joint venture with Daelim Industrial in Korea.

The revamped facility is expected to increase current output by more than 70% upon completion.

Oil pipeline leaks lead to explosion in Qingdao

Seven China Petroleum & Chemical workers have been arrested by Chinese police following a crude oil pipeline blast that killed at least 55 people in the eastern city of Qingdao last week.

A gaping crater was left in a major street after crude oil leaking from the pipeline ignited in storm drains. Residents were not warned of the danger despite discovery of the leak almost eight hours prior to the blast.

Two others from an economic and technological development zone of Qingdao were also arrested.

An investigation has been launched into safety at oil and gas pipelines following the incident.

Organisations collaborate to reduce shale gas impact on UK water resources

The UK Onshore Operators Group (UKOOG), the representative body for the UK onshore oil and gas industry, has agreed to join forces with Water UK in a bid to cut down the impact of onshore oil and gas development on the UK’s water resources.

The agreement aims to give confidence and reassurance to the public that everything will be done to minimise the effects of shale gas exploration and extraction on water resources and the environment.

Water industry representative Water UK has reviewed recent reports into shale gas extraction, and believes that potential risks to water and wastewater services can be mitigated by ensuring proper enforcement of the regulatory framework.

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