November’s top news stories

Encana to buy US shale producer Newfield Exploration for $5.5bn

Canadian oil and gas producer Encana signed a deal to acquire all of the outstanding shares of common stock of Newfield Exploration Company in a $5.5bn deal that will provide the former with significant positions in some of North America’s biggest oilfields.

The all-stock deal represents Encana’s biggest-ever transaction and will also include the assumption of $2.2bn of Newfield net debt.

Encana claimed that the acquisition is expected to result in the creation of the second largest producer of unconventional resources in North America, with pro-forma Q3 2018 production of 577,000 barrels of oil equivalent per day (boe/d).

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Anadarko Petroleum to offload midstream assets for $4.015bn

US petroleum and natural gas firm Anadarko Petroleum signed a $4.015bn agreement to sell nearly all of its remaining midstream assets to its master limited partnership Western Gas Partners (WES).

Under the terms of the agreement, Anadarko will receive a cash payment of $2.007bn. The remaining sale consideration is set to be paid in new Western Gas equity.

The transaction is being carried out to create a simplified midstream structure.

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Imperial to proceed with $1.98bn Aspen oil sands project in Canada

Imperial Oil made a final investment decision (FID) on the proposed development of its C$2.6bn ($1.98bn) Aspen oil sands project in Alberta, Canada.

The FID comes after the company received an approval from the Alberta government less than a week ago. The go-ahead represents the first new oil sands development to be approved since 2013, Reuters reported.

Located about 45km north-east of Fort McMurray, the project is expected to produce 75,000 barrels of bitumen a day.

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QEP to divest Williston Basin assets to Vantage for $1.725bn

QEP Resources’ wholly owned subsidiary QEP Energy Company signed an agreement for the sale of its Williston Basin assets to Vantage Energy Acquisition’s 100% subsidiary Vantage Acquisition Operating Company, in a deal worth up to $1.725bn.

Under the terms of the definitive agreement, QEP will sell all of its assets in North Dakota and Montana in the US.

They include the company’s South Antelope and Fort Berthold leasehold in the Williston Basin and comprise more than 100,000 net acres. They are currently producing at the rate of 46,000 barrels of oil equivalent (boe) on a daily basis.

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Western Australia revokes fracking ban on existing projects

The Western Australian Government lifted the existing moratorium regarding fracking on existing onshore petroleum titles following an independent scientific inquiry.

Despite this decision, operators need to seek approval from traditional owners and farmers before starting production.

The move comes after an independent scientific panel submitted its findings to the government in September following consultations with various stakeholders over a one-year period.

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India to raise $2bn from share sale in ONGC, IOC and OIL

The Indian Government is reportedly planning to divest $2bn worth of shares in Oil and Natural Gas (ONGC), Indian Oil (IOC), and Oil India (OIL), in order to meet its divestment target for this year.

Comprising a 5% equity stake in ONGC, 3% in IOC and 10% in OIL, the planned share sale is expected to raise Rs165bn ($2.3bn), economictimes.indiatimes.com reported citing unnamed sources.

The government currently owns a 67.48% stake in ONGC, 56.75% in IOC and 66.13% in OIL.

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Cimarex to buy Resolute Energy in $1.6bn cash and stock deal

US oil and gas exploration and production firm Cimarex signed a $1.6bn agreement to acquire Resolute Energy to enhance its presence in the Permian Basin.

According to the cash-and-stock deal, Resolute Energy shareholders will receive 0.3943 shares of Cimarex common stock, $35 a share in cash, or a combination of $14 a share in cash and a 0.2366 share of common stock.

Including the assumption of Resolute’s $710m long-term debt, the transaction is expected to expand Cimarex’s footprint in Reeves County by 21,100 net acres and add 35Mboe/d to its production base.

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CKI consortium’s $9.79bn APA Group acquisition deal falls through

The A$13bn ($9.79bn) proposed acquisition of Australian gas pipeline company APA Group by a Hong Kong-based consortium led by CK Infrastructure Holdings (CKI) collapsed after the Australian Government rejected the transaction.

Australia Treasurer Josh Frydenberg vetoed the proposal and said that it would be contrary to the national interest.

Frydenberg said: “I have formed this view on the basis that it would result in a single foreign company group having sole ownership and control over Australia’s most significant gas transmission business.”

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Ensign Energy wins bidding war to acquire 56.38% of Trinidad Drilling

Canada-based Ensign Energy Services won the bidding war against drilling rig contractor Precision Drilling for the ownership of Trinidad Drilling after 56% of Trinidad’s shareholders supported its unsolicited all-cash takeover bid.

In a statement, Ensign claimed that 56.38% of the common shares of Trinidad have been tendered to its $1.68 per share offer made in August.

Made after the completion of a strategic review, the offer valued Trinidad at C$947m ($713.44m), which included an estimated outstanding net debt of C$477m ($359.35m).

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Petrobras to sell stake in 34 onshore fields to 3R Petroleum

Brazilian oil giant Petrobras announced the $453.1m sale of its stake in 34 onshore production fields in the Potiguar Basin, Rio Grande do Norte, to 3R Petroleum.

100% owned by Petrobras, the concessions include mature fields located 40km south of the city of Mossoró-RN. They have been in production for more than 40 years.

Currently producing six thousand barrels of oil a day, the fields are being sold as a single package called Polo Riacho da Forquilha.