October's top stories: Aker Solutions acquired Johan Sverdrup pipeline contract, Concho bought Reliance Energy assets
Aker Solutions received a contract from Statoil to build Johan Sverdrup pipeline facilities and Concho Resources completed the acquisition of 40,000 net acres from Reliance Energy. Hydrocarbons-technology.com wraps up the key headlines for October 2016.
Aker Solutions received a contract from Statoil to build pipeline facilities at Mongstad terminal in order to procure oil from the North Sea Johan Sverdrup field.
Aker Solutions will also be responsible for developing the associated modifications and tie-ins at the site.
The contract carries a value of Nkr350 million ($42.53 million), includes engineering, procurement, construction and installation services and is expected to be completed by 2019.
US-based Concho Resources completed its previously announced acquisition of about 40,000 net acres in the core of the Midland Basin from Reliance Energy in a transaction worth approximately $1.625 billion.
The acquired assets are located in Andrews, Martin and Ector counties in Texas, and include production of ten million barrels of oil equivalent per day (mboepd) consisting of 67% crude oil.
The acquisition was initially announced in August this year and is consistent with the company’s portfolio management strategy as it expands its core Midland Basin position to more than 150,000 net acres.
Australia Pacific LNG produced the first cargo of liquefied natural gas (LNG) from the second of its two 4.5 million tonnes per annum production trains at its facility on Curtis Island near Gladstone, Queensland.
Australia Pacific LNG is a joint venture between ConocoPhillips (37.5%), Origin Energy (37.5%) and Sinopec (25%).
With the start of train two operations, approximately 200TJ/day of equity gas previously directed to the QGC sales contract will become available to Australia Pacific LNG.
US-based North Carolina Utilities Commission (NCUC) approved Duke Energy's proposed acquisition of energy services company Piedmont Natural Gas for $4.9 billion.
Duke Energy said that this order is the final regulatory approval required to close the deal.
The transaction previously had approval from the Tennessee Regulatory Authority and Piedmont's shareholders.
The Bolivian Government approved the extension of Spanish oil company Repsol's production contract to operate the Caipipendi area for an additional 15 years until 2046.
The company plans to move forward with two exploration campaigns in the region.
Caipipendi is located in the south of Bolivia, in the regions of Tarija and Chuquisaca and the consortium is made up of Repsol, which is serving as the operator with a 37.5% interest, Shell (37.5%) and PAE (25%).
Gail India placed orders for laying work of a 345km section of the Jagadishpur-Haldia-Bokaro-Dhamra Natural Gas Pipeline (JHBDPL), which will involve an investment of Rs3.06bn ($45.8m).
This section of the pipeline under phase-IB will run from Phulpur to Dobhi.
Gail said that two sections of the Rs129.4bn ($1.9bn) pipeline project will be executed simultaneously by JSIW Infrastructure and IL&FS Engineering & Construction.
BP Oman said that the Phase I of Khazzan natural gas project is 80% complete and set to deliver its first gas by the end of next year.
The project is expected to produce one billion cubed feet of gas per day during this phase.
Work on the Khazzan tight gas project is located on a previously undeveloped desert site 350km south of Muscat and began in 2014.
Royal Dutch Shell agreed to sell about 206,000 net acres of non-core oil and gas properties in Western Canada to Tourmaline Oil for approximately $1.03 billion.
The consideration consists of $758 million in cash and Tourmaline shares valued at $279 million.
As part of the transaction, Shell plans to sell 61,000 net acres in the Gundy area of north-east British Columbia, as well as 145,000 net acres in the Deep Basin area of west central Alberta, Canada.
Italian oil and gas company Eni announced that the first batch of export crude oil was shipped from the giant Kashagan oil field’s onshore processing plant.
The oil field recently began its production again after the successful pipeline replacement.
The production at the oil field would be increased gradually to the first level to reach 180,000 barrels per day.
FCX signed agreement to sell onshore oil and gas properties in California to Sentinel Peak Resources for $742 million
Freeport-McMoRan (FCX) signed an agreement to sell its onshore oil and gas properties in California, US, to Sentinel Peak Resources California for $742 million.
At present, the properties are producing 28,000 barrels of oil per day (bopd), including 18,000bopd in the San Joaquin Basin and 10,000bopd in the LA Basin and Coastal properties, and also reported a book value of approximately $0.1 billion on 30 June this year.
Sentinel will also assume future abandonment obligations associated with these properties.