September’s top news stories

BASF signed deal with LetterOne for Wintershall-DEA merger

BASF entered a definitive combination agreement to merge its Wintershall oil and gas business with global investment firm LetterOne’s DEA, in order to create the largest independent European exploration and production company.

To be called Wintershall DEA, the combined entity will have operations in 12 countries across Europe, Latin America, North Africa and the Middle East, with pro-forma production of 575,000 barrels of oil equivalent per day (boe/d) last year.

The companies aim to increase the production of Wintershall DEA to between 750,000boe/d and 800,000boe/d in the early 2020s.

---

Brookfield to buy East West Pipeline from Reliance Industries

Canada-based investor Brookfield Asset Management was reportedly set to acquire the East West Pipeline (EWPL), a natural gas pipeline system owned by a subsidiary of Indian conglomerate Reliance Industries.

The deal values EWPL, which has been posting losses, at an enterprise value of around Rs140bn ($2bn), economictimes.indiatimes.com reported.

Previously known as Reliance Gas Transportation Infrastructure, the EWPL operates a 1,400km common carrier pipeline from Kakinada in the Indian state of Andhra Pradesh on the east coast to Bharuch in Gujarat on the west coast.

---

Pipeline giant Kinder Morgan to sell remaining assets in Canada

US-based energy infrastructure firm Kinder Morgan was reportedly exploring the sale of its Canadian business after facing setbacks in the country due to environmental, political and legal hurdles.

The company appointed investment bank TD Securities to find a potential buyer for its remaining assets in Canada, Reuters reported citing unnamed sources familiar with the matter.

The proposed sale, which marks the company’s exit from the country, is valued at around C$2.4bn ($1.8bn).

---

Southwestern Energy agreed to sell Fayetteville shale assets for $1.865bn

Southwestern Energy Company signed an agreement to divest its Fayetteville shale exploration and production (E&P) and associated midstream gathering assets in Arkansas, US, to Flywheel Energy for $1.865bn.

The deal will also see Flywheel Energy assume $438m of future contractual liabilities after considering certain obligations retained by Southwestern Energy.

The assets being sold include around 915,000 net acres, 4,033 operated producing wells and 3.7Tcf of proved reserves.

---

EagleClaw to buy Caprock for $950m to boost Permian basin presence

EagleClaw Midstream, a midstream operator in the Permian’s Delaware Basin in West Texas, US, signed a deal to buy Caprock Midstream for $950m.

The Blackstone Energy Partners-backed company will acquire Caprock from Energy Spectrum Capital and Caprock Midstream Management using equity and committed debt financing from Barclays to fund the transaction.

EagleClaw’s asset portfolio comprises more than 550 miles of natural gas and natural gas liquids (NGL) pipelines and 720 million cubic feet per day (MMcf/d) of processing capacity.

---

Crescent Point unveiled measures for $1bn debt reduction plan

North American light and medium oil producer Crescent Point Energy unveiled cost-cutting and asset monetisation plans to reduce its debt by more than $1bn by the end of next year.

The company intends to realise its debt reduction target by downsizing its workforce by around 17%, selling certain assets.

The development comes after the company conducted a review of its asset base, business strategy and organisational structure.

---

Novatek agreed to build $996.99m LNG terminal in Kamchatka, Russia

Novatek signed an agreement to construct a marine liquefied natural gas (LNG) transhipment complex in the territory of Kamchatka, Russia, with an investment of around RUR70bn ($996.99m).

The agreement was signed with the Ministry of the Russian Federation for the Development of the Far East and the Government of the Kamchatka Territory at the Eastern Economic Forum in Vladivostok.

Under the terms of the agreement, the state and the regional governments expressed their support for the implementation of the project.

---

ExxonMobil signed LNG supply agreement with Alaska Gasline Development

ExxonMobil Alaska Production agreed on key terms for the supply of natural gas to Alaska Gasline Development (AGDC), which is developing the $43bn LNG project in Alaska, US.

The terms agreed by the parties include the price and a volume basis under a gas sales precedent agreement.

ExxonMobil will supply the gas from the Prudhoe Bay and Point Thomson fields in Alaska’s North Slope.

---

KBR partnered with ConocoPhillips to develop mid-scale LNG train

KBR and ConocoPhillips LNG Licensing collaborated to jointly develop a low-cost, mid-scale liquefied natural gas (LNG) train for the marketplace.

With a capacity between 1.5Mtpa and 3Mtpa, the proposed standardised LNG train will be designed to serve both greenfield and brownfield expansions looking for an off-the-shelf solution to reduce costs and shorten schedules for LNG facility installations.

As part of the partnership, KBR and ConocoPhillips will complete a front-end engineering and design (FEED) quality reference design for a mid-scale capacity LNG train.

---

Dominion Energy to acquire remaining Dominion Energy Midstream units

US-based energy transmission and production company Dominion Energy made a proposal to buy all outstanding common units in Dominion Energy Midstream Partners.

Under the terms of the offer, Dominion Energy will issue 0.2468 common shares per Dominion Energy Midstream common unit, valuing each unit at $17.75.

The proposed acquisition values Dominion Energy Midstream Partners at $2.2bn, Reuters reported.