Deals this week: Cenovus Energy, Chisholm Oil & Gas, Gazprom Neft
Cenovus Energy has agreed to acquire the remaining 50% non-operated working interest in the Foster Creek Christina Lake (FCCL) oil sands partnership and majority of western Canada Deep Basin gas assets located in Alberta, Canada, from ConocoPhillips.
The transaction involves a purchase consideration of $13.3bn, which will be funded by Cenovus through a combination of cash and equity. The deal also involves uncapped contingent payments for five years, which will commence once Western Canada Select (WCS) crude prices exceed $52 a barrel.
The FCCL partnership owns Foster Creek, Christina Lake and Narrows Lake oil sands projects with proved plus probable (2P) reserves of 3,240 million metric barrels (mmbbls). Cenovus will hold 100% working interest in the FCCL upon completion of the transaction.
The Deep Basin assets extend across an area of three million net acres holding proved plus probable reserves of 725mmboe. The assets also include associated processing facilities with a net processing capacity of approximately 1.4bcfd.
Cenovus has appointed J.P. Morgan & Co. and RBC Capital Markets as financial advisors, and Bennett Jones, Blake, Casse & Graydon, and Paul, Weiss, Rifkind, Wharton & Garrison as legal advisors for the transaction.
Scheduled for completion in the second quarter of this year, the transaction will allow Cenovus to expand its oil sands projects portfolio.
Chisholm Oil & Gas has purchased oil and gas acreage located in STACK play in Kingfisher County of the Anadarko Basin, Oklahoma, US.
The assets include approximately 53,000 acres with average production of approximately 3,000 barrels of oil equivalent a day (boed).
The deal allows the company to expand its oil and gas assets portfolio in Oklahoma.
Gazprom Neft plans to buy stake in certain oil and gas assets located in Russia from Repsol, according to sources.
Gazprom intends to acquire one half of a recently discovered oil field in Russia, according to one of the sources.
EnerVest intends to dispose certain oil and gas producing assets located in Atascosa County, South Texas, US.
The assets include 95% gross working interest in 47 active wells, with an output of 114 barrels of oil a day and 120 million cubic feet of gas a day from the Navarro formation in the Charlotte Waterflood field.
The company has appointed Oil & Gas Asset Clearinghouse for the divestment of the assets.
NOVA Chemicals Corporation and Borealis have signed a pact to establish a joint venture (JV) with Total subsidiary Total Petrochemicals and Refining USA to build a new light feed ethylene cracker and a new Borstar polyethylene (PE) facility in Texas, US.
The JV intends to construct a new 1,000ktpa ethylene cracker in Port Arthur and a new 625ktpa Borstar PE plant in Bayport, Texas, by 2020. The JV also includes a 400ktpa Bayport PE facility owned by Total.
The JV will implement the proprietary Borstar polyethylene process technology for the first time in the US. Total is anticipated to own 50% interest in the JV.