Deals this week: Equinor, Bellatrix, GeoPark

Equinor has entered an agreement with Global Petro Storage (GPS) for the construction of a liquefied petroleum gas (LPG) terminal and storage facility in Port Klang, Malaysia.

The 135,000m³ LPG terminal will have a capacity of 1.5 million tonnes of LPG a year. It will handle very large gas carriers (VLGC) and pressurised LPG vessels.

The terminal will receive LPG from various regions such as the North Sea and North Africa, as well as distribute it in the Asian markets. It will enable Equinor to increase its market share in the south-Asian LPG market.

The terminal construction is expected to commence in January 2019, while operations are scheduled to begin by mid-2021.

Equinor is a Norway-based energy company, while GPS is a subsidiary of Singapore-based petroleum storage and logistics provider.

Bellatrix Exploration and POSCO Daewoo E&P (Daewoo) have signed a definitive agreement to acquire the latter’s assets in the Ferrier area of west-central Alberta, Canada, for $9.5m.

Bellatrix will acquire 1,250 barrels of oil-equivalent per day (boed) including 65% natural gas and 35% liquids of Daewoo’s current production, under the agreement.

The company will pay $1.75m in cash and issue 6.75 million shares, as part of the agreement.

The acquisition will increase Bellatrix’s production capacity by approximately 100boed.

Based in Canada, Bellatrix is an oil and gas exploration company, while Posco Daewoo, is a subsidiary of Daewoo, a trading company based in South Korea.

GeoPark has signed an agreement with LG International to purchase the latter’s interest in its operations and subsidiaries in Colombia and Chile.

Following the transaction, GeoPark’s equity interest in the Colombian and Chilean businesses, comprising various hydrocarbons production reserves such as Llanos 34 block in Colombia, will increase to 100%.

Upon closing of the transaction, GeoPark will pay $81m, along with two $15m instalments in June 2019 and June 2020. The transaction also includes three contingent payments of $5m, payable when production thresholds are surpassed.

The transaction will increase GeoPark’s revenue and ownership in its subsidiaries.

GeoPark is a Chilean oil and gas exploration company, while LG International is a specialist resources trading company based in South Korea.

Simmons Edeco has been contracted by Tonalli Energia for providing drilling services for the development of Block 24 (Tecolutla) located in the Tampico-Misantla Basin in Veracruz, Mexico.

Simmons will deploy its Rig 836 drilling rig to drill a horizontal well, 2310 TVD, up to a water depth of 3,750m.

Simmons Edeco is a US-based oilfield services provider and a subsidiary of Simmons Drilling, while the Tonalli Energia joint venture between Idesa Group and Petrofrontera is focused on oil and gas development in Mexico.