January’s top news stories

Samsung secures $1.85bn EPC contract from Saudi Aramco

Saudi Aramco awarded a $1.85bn engineering, procurement and construction (EPC) contract to Samsung Engineering for a gas reservoir storage project in Saudi Arabia.

The deal is for Saudi Aramco’s Hawiyah Unayzah Gas Reservoir Storage (HUGRS) project.

The HUGRS project is located in Hawiyah, 260km east of Riyadh, Saudi Arabia.

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Tenaris acquires steel pipe manufacturer IPSCO Tubulars for $1.1bn

Steel pipes manufacturer and supplier Tenaris acquired 100% of the shares of the US-based steel pipe manufacturer IPSCO Tubulars from PAO TMK.

Tenaris initially signed the stock purchase agreement in March 2019.

Finalised at $1.1bn, the transaction price is based on a cash-free and debt-free basis. It also includes $220m of working capital.

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Kinder Morgan sells shares in Canada’s Pembina Pipeline for $764m

US-based pipeline operator Kinder Morgan (KMI) announced the sale of its 25 million shares in Canada’s Pembina Pipeline, which it received as part of the latter’s acquisition of the outstanding common equity of Kinder Morgan Canada for $764m.

The sale of these shares aligns with the KMI’s previously announced plans to convert the shares into cash in a non-disruptive deal.

According to Kinder Morgan, the sale was also consistent with the company’s 2020 budget.

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New Fortress Energy secures $800m loan to fund natural gas projects

New Fortress Energy secured an $800m loan facility from certain funds and accounts managed by affiliates of Apollo Global Management.

The term loan facility comes with a three-year term. The loan issued under this facility has an annual interest rate equal to LIBOR plus 6.25% and subject to a 1.50% LIBOR floor and annual increases in the interest rate spread.

New Fortress will use the net proceeds from the loan to fund the development and construction of its energy infrastructure projects worldwide, as well as repay its existing $500m term loan facility completely.

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North Dakota’s Bakken producer to use SmartPAD digitisation technology

Cold Bore Technology announced that one of the major oil producers in North Dakota’s Bakken Formation has selected its proprietary SmartPAD technology.

The oil producer has selected Cold Bore’s SmartPAD technology to digitise fracking completion operations.

The SmartPAD platform will capture and analyse ultra-high-resolution operational data in real-time resulting in higher efficiency. It will reportedly also lead to a safer on-site environment, as well as increased transparency for workers.

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Australia considers new natural gas reservation policy

The Australian Government announced plans to establish a new natural gas reservation policy to ensure that the country has sufficient gas supplies for domestic use.

Publishing a review of the Australian Domestic Gas Security Mechanism (ADGSM), federal resources minister Matt Canavan said he will work with his state and territory counterparts to develop a national gas reservation policy over the next 12 months.

Canavan said: “We can’t repeat the mistakes of the past in just letting our gas be shipped overseas with no thought to our domestic requirements.”

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China to open oil and gas exploration and production to foreign firms

China unveiled plans to allow foreign companies to participate in oil and gas exploration and production (E&P) in the country, as part of its plans to boost domestic energy supplies.

The Ministry of Natural Resources stated that foreign firms registered in China with net assets of no less than CNY300m ($43m) will be allowed to secure mining rights for oil and gas exploration and production, reported AFP.

The change, which is also applicable to domestic companies, is said to be effective from May 2020.

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India’s ONGC ‎receives 28 bids for 50 oil and gas fields

India’s state-owned Oil and Natural Gas Corporation (ONGC) has received a total of 28 bids for 50 out of 64 small and marginal oil and gas fields in the first round of bidding.

These oil and gas fields were put out for bidding to raise production by involving private sector players, news agency PTI reported.

Undisclosed sources familiar with the development told PTI that 12 companies placed these bids for 50 fields at the closure of the bidding last week.