M&As this week: Total, San Leon Energy, Tatneft

Total has agreed to an $207m acquisition of approximately 23% stake in Tellurian Investments.

The acquisition will allow Total to expand its LNG assets base, while the amount raised from the transaction is intended to be used by Tellurian to develop an integrated gas project.

San Leon Energy has received an offer from Geron Energy Investment for a potential takeover worth $5.9m.

San Leon owns oil and gas assets in Albania, France, Ireland, Morocco, Poland, and Spain. The assets extend across an area of approximately 35,822km².

The discussions are at a preliminary stage.

Tatneft has agreed to dispose 24.99% stake in Nizhnekamskneftekhim (NKNK) to Taif for approximately $523.52m.

NKNK is part of TAIF Group and one of the biggest European producers of petrochemical products.

The acquisition was scheduled for completion by the end of last year.

EnLink Midstream Partners and EnLink Midstream have agreed to sell approximately 31% stake in Howard Midstream Energy Partners to Alberta Investment Management Corporation (AIMCo). The deal involves a sale consideration of $190m.

Howard Midstream owns a range of midstream assets, including 600 miles of pipeline, processing facilities and a 450,000 barrel liquids storage terminal.

AIMCo has appointed Evercore Partners as financial advisor and Kirkland & Ellis as legal advisor for the transaction.

The divestiture will enable EnLink Midstream to finance its 2017 capital expenditures programme.

The transaction is scheduled for completion in the first quarter of this year.

Viva Energy Australia has agreed to acquire Shell Aviation Australia from Royal Dutch Shell (Shell) for $250m.

Scheduled for completion by mid-2017, the transaction will enable Viva Energy to supply aviation fuel directly to customers.

Shell Midstream Partners has completed the acquisition of a 10% stake in Proteus Oil Pipeline Company and Endymion Oil Pipeline Company, as well as 1% interest in Cleopatra Gas Gathering Company from BP.

The purchase consideration was funded by Shell Midstream through borrowings under its revolving credit facilities.

Proteus Oil owns a 71-mile crude oil pipeline with a capacity of 425,000 barrels a day, while Endymion Oil owns an 89-mile crude oil pipeline with a capacity of 425,000 barrels a day.

Cleopatra Gas’s assets include a 115-mile gas gathering pipeline in Southern Green Canyon.

The deal allows Shell Midstream to strengthen its assets base in the eastern Gulf of Mexico.

Rosneft Oil Company has agreed to acquire 100% stake in Targin for a purchase consideration of up to $67.4m.

Targin is a provider of drilling, well servicing and work-over, production and servicing of oilfield equipment, and transportation and logistics to the oil and gas sector.

The acquisition will enable Rosneft to expand its oilfield services business by increasing its active rig fleet by 19% and the number of well servicing and work-over staff by 30%.

Halliburton Company plans to acquire up to 100% interest in Novomet Oil Services Holding.

The acquisition will allow Halliburton to fortify its artificial lift operations in the US and worldwide.

Helios Investment Partners (Helios), and Vitol Group (Vitol), through its wholly owned subsidiary Vitol Africa, have agreed to acquire the remaining 20% interest in Vivo Energy Investments from Royal Dutch Shell (Shell).

The $250m deal involves the renewal of a long-term brand licence agreement with Shell, allowing Vivo Energy to continue to operate under the Shell brand.

Vivo Energy operates approximately Shell-branded 1,700 fuel stations in 16 countries. Helios and Vitol will own 100% stake in Vivo Energy upon completion of the transaction.

Scheduled for completion in the first half of 2017, the divestment represents Shell’s strategy to focus on its downstream operations.

Alpek, through its subsidiaries Grupo Petrotemex and Dak Americas Exterior, has agreed to acquire 100% stake in Companhia Petroquimica de Pernambuco (PetroquimicaSuape) and Companhia Integrada Textilde Pernambuco (Citepe) from Petroleo Brasileiro (Petrobras) for $385m.

PetroquimicaSuape and Citepe own and operate an integrated PTA-PET facility located in Ipojuca, Pernambuco, Brazil.

The facility has a production capacity of 700,000 tonnes per annum (tpa) of PTA and 450,000tpa of PET. The site also includes a 90,000tpa texturised polyester filament plant owned by Citepe.

The amount raised from the deal is intended to be used by Petrobras to reduce its indebtedness.

Delek US Holdings has agreed to acquire the remaining 53% interest in Alon USA Energy. The $675m deal will involve the transfer of Delek US’ shares to the stakeholders of Alon USA at a ratio of 0.504:1.

Alon USA owns and operates oil refineries and convenience stores across California, Louisiana Texas and New Mexico. The total capacity of the refineries is approximately 217,000 barrels a day.

Delek has appointed Tudor, Pickering, Holt & Co. as financial advisor, as well as Norton Rose Fulbright US and Morris, Nichols Arsht & Tunnell as legal advisors for the transaction.

J.P. Morgan and Vinson & Elkins are the financial and legal advisors to Alon USA, respectively.

Scheduled for completion in the first half of this year, the acquisition will allow Delek to expand its downstream operations in Texas.

Tallgrass Energy Partners has completed the acquisition of Tallgrass Terminals and Tallgrass NatGas Operator from Tallgrass Development.

The deal involved a cash consideration of $140m, which was funded by Tallgrass Energy through borrowings under its revolving credit facility.

Tallgrass Terminals owns the Sterling and Buckingham terminals in Colorado, 20% stake in the Deeprock development terminal located in Cushing, Oklahoma, approximately 550 acres located in south Cushing, and approximately 250 acres in Guernsey, Wyoming.

REX is the owner and developer of Rockies Express natural gas pipeline system extending between Rio Blanco County, Colorado, and Monroe County, Ohio.

DCP Midstream has completed the merger of its midstream subsidiaries with DCP Midstream Partners (DPM). DCP Midstream is a 50:50 joint venture between Phillips 66 and Spectra Energy Corporation.

The transaction involved DCP Midstream’s contribution of its midstream assets and $424m of cash to DPM against approximately 31.1 million shares worth $1.125bn issued by DPM and assumption of DCP Midstream’s $3.15bn debt.

The new entity will be named DCP Midstream and listed in the New York Stock Exchange with the ticker symbol ‘DCP’.

The new company, with an enterprise value of approximately $11bn, is anticipated to become the biggest natural gas liquids (NGL) producer and gas processor in the US.

Upon completion of the transaction, Phillips and Spectra Energy will retain their 50:50 joint venture stakes in DCP Midstream, with a 38% stake increase in DPM.

The new company will own and operate 61 gas processing plants, 12 fractionators, 59,700mi of natural gas pipelines and 4,600mi of natural gas liquid pipelines.

Bank of America Merrill Lynch and Bracewell were the financial and legal advisors to DCP Midstream, respectively.

Evercore Partners was the financial advisor, while Andrews Kurth Kenyon and Richards, Layton & Finger were the legal advisors to DPM for the transaction.