January’s top news stories

Adnoc signs $5.8bn deal to sell stakes in refining business to Eni, OMV

The Abu Dhabi National Oil Company (Adnoc) signed agreements to offer stakes in its unit Adnoc Refining to Italian firm Eni and Austria’s OMV for a total consideration of $5.8bn.

Eni will acquire a 20% interest in Adnoc Refining for $3.3bn, while OMV will purchase 15% of the shares for $2.5bn. Adnoc will retain the remaining 65% stake in the company.

The transaction values Adnoc Refining at an enterprise value of $19.3bn and seeks to expand the company’s access to markets in Africa, Asia and Europe. The business has a total refining capacity of 922,000 barrels a day.

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Husky ends $4.95bn acquisition bid for oil sands firm MEG Energy

Husky Energy ended the C$6.4bn ($4.95bn) acquisition bid for Canadian oil sands producer MEG Energy after failing to secure enough support from shareholders for the deal.

Based on a condition that at least 66.7% of MEG shares must be tendered for the completion of the acquisition, the company’s hostile offer expired on 16 January.

Husky decided not to extend the offer citing a lack of MEG Board and shareholder support, as well as lamented that market conditions changed dramatically since the offer was proposed.

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Saudi Aramco to buy 19.9% stake in Hyundai Oilbank for $1.6bn

Saudi Aramco is reportedly planning to acquire a 19.9% interest in South Korean refiner Hyundai Oilbank from Hyundai Heavy Industries Holdings for a $1.6bn consideration.

The proposed transaction will offer the state-owned company greater presence in South Korea, which is one of the firm’s biggest buyers of crude oil in Asia, Reuters reported.

Aramco already owns a 63.41% majority shareholding in South Korean refiner S-Oil.

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Pertamina to invest $1bn in Philippines for regasification hub project

Indonesian oil and natural gas company Pertamina announced plans to invest $1bn in a regasification hub project in the Philippines, according to the Department of Trade and Industry (DTI).

In a meeting with DTI secretary Ramon Lopez, Pertamina officials expressed interest to participate in the development of liquefied natural gas (LNG) in the country.

Pertamina corporate marketing director Basuki Trikora Putra stated that the company is looking to invest in floating storage regasification unit (FSRU) or land-based LNG regasification and to provide LNG supply.

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Elliott makes bid to buy QEP Resources for $2.07bn

Investment management firm Elliott Management made a proposal to acquire all of the outstanding shares of US-based exploration and production company QEP Resources for a $2.07bn all-cash transaction.

The offer values QEP at $8.75 a share and represents a 44% premium to the stock’s closing price on 4 January.

Elliott made the proposal in a letter to QEP’s board. In the letter, the company claimed that QEP remains deeply undervalued and the sale would be the best approach to maximise shareholder value.

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Hillcrest and Xstate to jointly pursue North American acquisitions

Hillcrest Petroleum signed a memorandum of understanding (MOU) with Australian oil and gas firm Xstate Resources to jointly pursue onshore oil and gas acquisitions in Canada and the US.

Hillcrest identified certain producing oil and gas assets in the Western Canada Sedimentary Basins and was reviewing them for potential acquisition and development.

Xstate was also reviewing several oil and gas projects in the US to pursue acquisition opportunities.

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Mexico gasoline pipeline blast kills 79 people

A ruptured gasoline pipeline in central Mexico exploded, killing at least 79 people and leaving several others injured.

According to media reports, the explosion took place after the pipeline was ruptured by suspected fuel thieves in Tlahuelilpan, Hidalgo.

Several people gathered around the pipeline to fill up containers with spilt fuel and were engulfed in an inferno following the blast.

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Chevron, Total and Reliance invest in blockchain-based platform Vakt

Three major oil companies Chevron, Total and Reliance Industries invested in blockchain-based oil platform Vakt.

Vakt manages physical energy transactions, from trade entry to final settlement.

The companies will also implement Vakt’s blockchain-enabled platform, which was launched in November.

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India approves $3.17bn Numaligarh refinery expansion project

India’s Union Cabinet granted approval for Rs225.94bn ($3.17bn) expansion of the Numaligarh refinery in the state of Assam to meet fuel demand in the north-eastern part of the country.

The project will increase the refinery’s capacity by six million tonnes per annum.

The central government will provide Rs10.2bn ($143.51m) of viability gap funding (VGF) for the proposed refinery expansion project.

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BP and Eni sign agreement to explore Block 77 in Oman

BP and Eni signed an agreement with the Ministry of Oil and Gas of the Sultanate of Oman towards the award of a new exploration and production sharing agreement (EPSA) for Block 77.

Under the terms of the heads of agreement (HoA), the companies will work with the Government of Oman towards the EPSA award.

With a total area of almost 3,100km², Block 77 is located in central Oman, 30km east of the 2,850km² Block 61 operated by BP.