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Exxon Planning $1.5 Billion Investment In Deepwater Development, Nigeria Says
World Oil
Exxon Planning $1.5 Billion Investment In Deepwater Development, Nigeria Says(Bloomberg) – Exxon Mobil Corp. plans to invest $1.5 billion in a deepwater oil field in Nigeria as Africa’s top producer looks to boost output, according to the nation’s regulator. The investment, expected within the next two years, will focus on reviving production in the Usan field and is in addition to funding earmarked for planned developments in Owowo and Erha, the Nigerian Upstream Petroleum Regulatory Commission said in a statement Tuesday, citing a visit by Shane Harris, Exxon’s managing director in Nigeria. The producer aims to reach oil output of 2.4 million barrels a day after dropping to less than half of that level in 2022. Nigeria has taken measures to reduce vandalism and improve regulations, as oil majors have divested from onshore and shallow water fields due to security concerns. Local independent companies are expected to raise output as assets are transferred from recent sales. While Exxon’s investment plans signal its continued interest in the country, the company initially considered spending as much as $10 billion on Nigeria’s offshore oil developments, the government said in September.  “This move counters speculation about Exxon Mobil’s potential withdrawal from Nigeria, instead underscoring a strategic expansion and strengthening of its operational footprint in the country,” the NUPRC said in Tuesday’s statement.  Exxon could reach a final investment decision on Usan in the third quarter, subject to approvals for its field development plan and by partners, according to NUPRC.
oil-gas
May 07, 2025
Federal Jury Sides With Marathon Oil In $123.7 Million Force Majeure Case
World Oil
Federal Jury Sides With Marathon Oil In $123.7 Million Force Majeure CaseA federal jury in the Southern District of Texas has ruled in favor of Marathon Oil Company in a high-stakes natural gas trading dispute stemming from Winter Storm Uri. The jury rejected a $123.7 million breach-of-contract counterclaim filed by Koch Energy Services, siding instead with Marathon’s force majeure defense related to deliveries during the historic February 2021 storm. Marathon was jointly represented by Haynes Boone and AZA during the trial. Haynes Boone attorneys Mark Trachtenberg, Ryan Pitts and Garrett Martin worked in close coordination with AZA’s trial team, which included Tim Shelby, Sammy Ford IV, Paul Galante, Emily Adler, Michael Gorrell and Ab Henry. Trachtenberg ran point on the jury charge and argued the charge issues before the court. The Haynes Boone team also drafted key legal briefs leading up to the trial and provided appellate support.  The dispute centered on whether Marathon fulfilled its contractual obligations in Oklahoma as the storm crippled production and sent gas prices soaring. Koch argued that Marathon was required to purchase replacement gas to meet delivery obligations. The jury, however, agreed that the contract only required Marathon to use reasonable efforts to keep its own production online.  After a six-day trial and under three hours of deliberation, the jury returned a decisive verdict in favor of Marathon, now a subsidiary of ConocoPhillips. “This was a landmark result not just for our client but for the broader energy sector,” said Trachtenberg. “The verdict provides guidance to the industry regarding producers’ obligations during catastrophic weather events and affirms a common-sense understanding of what it means to exercise ‘reasonable efforts’ under a force majeure clause.”
oil-gas
May 07, 2025
Permian Resources Acquires Delaware Basin Assets From Apa For $608 Million
World Oil
Permian Resources Acquires Delaware Basin Assets From Apa For $608 MillionPermian Resources has reached an agreement to buy core assets in the Delaware basin from Apache parent company APA Corp. The deal, valued at $608 million, includes 13,320 net acres, 8,700 net royalty acres and 12,000 Boe/d directly offset Permian Resources’ core New Mexico operating areas. The transaction is expected to close by the end of the second quarter of 2025. “This acquisition is a natural fit for us and has material upside that Permian Resources is uniquely positioned to realize," said James Walter, Co-CEO of Permian Resources. "We continue to grow our high return inventory, our net royalty acre portfolio and our acreage footprint in a cost-efficient manner that reflects the current environment." "Our overarching goal is to drive long-term value for our investors, and we believe the addition of high-quality assets adjacent to our core position, acquired during a lower commodity price environment will further enhance short and long-term returns for investors,” Walter continued.   Permian Resources has identified significant upside potential associated with the acquired assets. In addition to new operated inventory, the acquisition increases working interest in over 100 existing Permian Resources operated locations, given the sizable acreage overlap. Additionally, the acquired properties include high-quality non-operated acreage adjacent to and surrounding Permian Resources’ current position. Utilizing its highly effective ground game, the company plans to leverage this acreage to trade for incremental interests in existing operated units or establish new operating units.
oil-gas
May 07, 2025
Bw Energy To Buy Valaris 247 Jackup Rig For $108 Million
World Oil
Bw Energy To Buy Valaris 247 Jackup Rig For $108 MillionValaris Limited has agreed to sell its jackup VALARIS 247 to BW Energy for cash proceeds of approximately $108 million. This sale is expected to close in the second half of 2025, subject to customary closing conditions. As part of the sales agreement, BWE will be restricted from using the rig outside of BWE-owned or affiliated properties for the rig’s expected remaining useful life. “We are pleased to announce this highly accretive, opportunistic transaction to sell VALARIS 247, a 27-year-old jackup currently working offshore Australia,” said Valaris President and CEO Anton Dibowitz. “Upon closing, the sale proceeds will provide us with additional financial flexibility, including the return of capital to shareholders.”
oil-gas
May 06, 2025
Adnoc Gas Announces Q1 Net Income Of $1.27 Billion, Up 7% Year On Year
World Oil
Adnoc Gas Announces Q1 Net Income Of $1.27 Billion, Up 7% Year On YearADNOC Gas has announced net income of $1.27 billion and EBITDA of $2.16 billion for the first quarter of 2025, exceeding the equivalent quarter in 2024 by 7% and 4% respectively.  ADNOC Gas attributed the performance to continued demand for domestic gas - up on the equivalent quarter last year - as a result of strong economic growth in the UAE, which lifted the total sales volume. Secondly, through efficient management of the planned shut-down program to boost processing capacity, a reduction in the number of days the company’s plants were offline led to a rise in processed volumes.  “This has been another outstanding quarterly performance by ADNOC Gas, supported by our resilient business model in a lower oil price market, which significantly exceeded market expectations,” said Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas. “These results come on the back of successful supply agreements and the optimization of our ongoing shut-down program designed to power our continued growth. Looking ahead, we will use the strength of our balance sheet to invest through the cycle as we seek to realize EBITDA* growth of over 40% between 2023 and 2029.” ADNOC Gas signed a series of mid to long term LNG supply agreements valued at circa $9 billion with the Indian Oil Corporation and JERA Global Markets of Japan during Q1, reinforcing its role as a leading supplier of lower-carbon fuel. The agreements support the growth of the Company’s international customer base as well as the transformation of global energy systems.  Q1 also saw a year-on-year uplift in CAPEX of 43% as ADNOC Gas continues to make the necessary investments through the cycle to grow the business and achieve its longer-term EBITDA targets. Project implementation remains on track, with the Company expecting to take a Final Investment Decision on its Rich Gas Development project in 2025. As a result of the recently completed marketed offering of 3.1 billion shares in ADNOC Gas in which the free float increased by 4% to 9%, the company is eligible for potential inclusion in the MSCI and FTSE indices as early as June and September respectively.
oil-gas
May 05, 2025
Valaris Lands $135 Million Drillship Contract For Offshore West Africa
World Oil
Valaris Lands $135 Million Drillship Contract For Offshore West AfricaValaris Limited has been awarded a five-well contract offshore West Africa for drillship VALARIS DS-15. The contract is expected to commence in the third quarter 2026. The total contract value, based on an estimated duration of 250 days, is approximately $135 million, including upfront payments for rig upgrades and mobilization. The total contract value does not include the provision of additional services. The contract includes priced options for up to five wells with an estimated total duration of 80 to 100 days. See also: Drillships in the digital age: Capturing new opportunities for smarter, safer and more sustainable operations—at any age  “We are excited to have secured another contract for one of our high-specification drillships,” said Valaris President and CEO Anton Dibowitz. “As part of this contract, the rig will be upgraded with an enhanced managed pressure drilling system. We believe this contract reflects the market’s preference for contractors that can deliver complex drilling solutions with high-specification, seventh generation drillships. In addition, this contract adds to our presence offshore West Africa, where we are well positioned for future contracting opportunities.”
oil-gas
May 05, 2025
Equinor Sells Stake In Brazil'S Peregrino Field To Prio For $3.5 Billion
World Oil
Equinor Sells Stake In Brazil'S Peregrino Field To Prio For $3.5 BillionImage credit: Felipe Torres, Equinor. Equinor has entered into agreements with Brazilian company PRIO to sell its 60% operated interest in the Peregrino field in Brazil for a total value of $3.5 billion USD. PRIO, Brazil’s largest independent oil and gas company, will pay a consideration of USD 3.35 billion and a maximum of USD 150 million in interest to Equinor for the transaction. The final cash payment will reflect the closing date and any deductions generated by the asset since the effective date, which is 1 January 2024. Equinor will be responsible for operations of the field until closing of the transaction, after which PRIO will take over operatorship. “With this transaction we realize value from a long-standing asset in our Brazil portfolio," said Philippe Mathieu, Executive Vice President for Exploration and Production International at Equinor. "Brazil will continue to be a core country for Equinor, as we focus on starting up the Bacalhau field and continue progressing the Raia gas project. With these two operated projects and our partnership in Roncador our equity production in Brazil will be close to 200,000 bpd by 2030.”  “This deal is part of Equinor's ongoing effort to high-grade its international portfolio through asset divestments and acquisitions. We continue to see growth potential and opportunities to extend the longevity of our international oil and gas portfolio, also in Brazil,” Mathieu continued. Equinor has been operating the Peregrino field since 2009 and around 300 million barrels of oil have been produced by the asset since. Peregrino is a heavy oil field and consists of a FPSO platform supported by three fixed platforms. The field is in the Campos Basin, east of Rio de Janeiro. In Q1 2025, Equinor´s share of production from Peregrino was around 55,000 bpd. Last year, PRIO acquired Sinochem’s 40% interest in the Peregrino field. “PRIO has been a valued partner since joining the Peregrino license last year, and we look forward to a smooth hand-over with them,” says Veronica Coelho, Senior Vice President and Country Manager for Equinor Brazil. “We are very proud of the work that has been done by our team over the past 20 years on the Peregrino field. This asset has been the cornerstone of Equinor’s history in Brazil," Coelho continued. "Our journey in Brazil continues with full momentum, building on the legacy of those that have worked on Peregrino. We are preparing for operations on Bacalhau, as well as the startup of the Serra da Babilonia renewable hybrid project by our subsidiary Rio Energy and we are progressing the Raia gas project." The transaction is subject to regulatory and legal approvals. The payment will occur in two tranches, one at signing and a further one closer to closing. The payment will be subject to customary adjustments.
oil-gas
May 02, 2025
Woodside Approves $17.5 Billion Louisiana Lng Development
World Oil
Woodside Approves $17.5 Billion Louisiana Lng DevelopmentWoodside has made a final investment decision to develop the three-train, 16.5 million tonne per annum (MMtpa) Louisiana LNG development. Woodside is targeting first LNG in 2029. Development of Louisiana LNG will position Woodside to deliver approximately 24 Mtpa from its global LNG portfolio in the 2030s, and operating over 5% of global LNG supply.1 The development has expansion capacity for two additional LNG trains and is fully permitted for a total capacity of 27.6 Mtpa. At full capacity, the foundation project is expected to generate approximately $2 billion of annual net operating cash in the 2030s. It will drive Woodside’s next chapter of value creation, giving the company’s global portfolio the potential to generate over $8 billion of annual net operating cash in the 2030s.2 The forecast total capital expenditure for the LNG project, pipeline and management reserve is US$17.5 billion (100%).3 Stonepeak, as an investor in Louisiana LNG Infrastructure LLC, will provide $5.7 billion towards the expected capital expenditure for the LNG project on an accelerated basis, contributing 75% of capital expenditure in both 2025 and 2026.4 Woodside’s share of forecast total capital expenditure is $11.8 billion. “Louisiana LNG is a game-changer for Woodside, set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns,” said Meg O’Neill, CEO of Woodside. “This world-class project is a compelling and de-risked investment. It leverages Woodside’s proven strengths in project execution, operational excellence, marketing and customer relationships to offer significant cash generation and drive long-term shareholder value. “Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets," O'Neill continued. “The project benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan of more than 40 years. It also has access to well-established interstate and intrastate gas supply networks. “The marketing opportunities Louisiana LNG offers across the Pacific and Atlantic Basins leverages Woodside’s proven LNG marketing capabilities and complements our established position in Asia. This will position Woodside to even better serve global customers and meet growing energy demand. “This supply can target strong and sustained demand for LNG expected in both Asia and Europe, as those markets pursue energy security and decarbonization aspirations. “As the largest single foreign direct investment in Louisiana’s history, Louisiana LNG will also be the first greenfield U.S. LNG project to go to final investment decision since July 2023. References: 1 Source: Wood Mackenzie.2 At Woodside’s current equity interest of 100% in HoldCo (and assumes completion of the asset swap transaction between Woodside and Chevron - refer to announcement titled ‘Woodside simplifies portfolio and unlocks long-term value’ announced 19 December 2024. Completion of the transaction is expected to occur in 2026).3 Louisiana LNG project cost is $15.9 billion, or $960/tonne, and includes EPC, owner’s cost and contingency costs. Pipeline cost is $1.1 billion. Management reserve contains allowances for tariffs and business unit costs.4 See “Woodside announces Louisiana LNG partnership with Stonepeak” announced 7 April 2025 for details. Completion of the transaction is expected to occur in the second quarter of 2025.
oil-gas
Apr 29, 2025
Flotek Acquires Profrac Power Generation Assets For $105 Million
World Oil
Flotek Acquires Profrac Power Generation Assets For $105 MillionFlotek has acquired power generation assets and related intellectual property from ProFrac GDM, a subsidiary of ProFrac, for $105 million. Flotek concurrently entered into an agreement for a six-year dry lease of the acquired assets with ProFrac GDM. The acquired assets include digitally enhanced mobile natural gas conditioning and distribution units providing real-time gas monitoring and dual fuel optimization for remote, behind-the-meter power generation with applications across multiple markets. With this acquisition, Flotek will leverage its real-time measurement technology to treat and optimize fuels used in remote power generation applications. The lease agreement provides for fixed rates during the first five years, and prevailing market rates during the sixth year. Twenty-two assets will be placed into rental service immediately and 8 additional units are expected to be added throughout the second half of 2025. "We are pleased to announce these transformative agreements, providing us with an entry point to the rapidly growing mobile power generation sector,” said Ryan Ezell, Flotek's Chief Executive Officer. “Our innovative, real-time measurement technologies are integrated into the acquired assets, safeguarding critical power generation fleets and measuring fuels for custody transfer. Importantly, we believe these transactions provide stable cash flow attributable to our high-growth Data Analytics segment and will be accretive to our shareholders while honoring our commitment to maintaining a low leverage profile." "These transactions represent an evolutionary step forward in our business relationship with Flotek," said Matt Wilks, Executive Chairman of ProFrac. "By leveraging cutting-edge intellectual property, these asset integrity management solutions provide industry-leading gas quality assurance capabilities to customers while providing a platform for future growth as we partner with Flotek to explore applications of this technology across other industry verticals. Importantly, these transactions strengthen our financial flexibility and our ability to optimally manage our purchase obligations under the Chemicals Supply Agreement in place with Flotek."
oil-gas
Apr 28, 2025
Upstream M&A Reached $17 Billion In Q1 2025, Enverus Says
World Oil
Upstream M&A Reached $17 Billion In Q1 2025, Enverus SaysEnverus Intelligence Research (EIR), a subsidiary of Enverus, is releasing its summary of 1Q2025 upstream M&A activity and outlook for the rest of the year. The M&A summary follows Enverus' release of Investor Analytics, a new cutting-edge solution designed to offer investors a comprehensive view of key market dynamics. Upstream M&A opened 2025 with $17 billion in deal value, the second-best start to a year since 2018. However, activity was disproportionately driven by one company, Diamondback Energy. Buyers were already feeling the pressure of limited acquisition opportunities and high asking prices for undeveloped drilling inventory. "Upstream deal markets are heading into the most challenging conditions we have seen since the first half of 2020. High asset prices and limited opportunities are colliding with weakening crude," said Andrew Dittmar, principal analyst at EIR. "Potential sellers are acutely aware of the scarcity of high-quality shale inventory, creating a reluctance to unload their assets at a discount. Buyers on the other hand were already stretched by M&A valuations and can't afford to continue to pay recent prices now that oil prices are lower." Prior to OPEC and tariffs creating waves in oil markets, pricing for quality shale inventory was a perpetually rising tide. Diamondback set a record in the Permian Basin with its acquisition of Double Eagle IV. The private equity sponsored E&P was able to garner such a large premium for its land because high consolidation over the last few years has left few attractive private companies for the public E&Ps to target. A potential bright spot for M&A is natural gas with significant interest in adding assets with access to Gulf Coast markets from multiple buyer groups, including international buyers and private capital. While near-term gas prices are also being challenged in the broad market selloff, future prices still look strong with a secular shift in demand from liquified natural gas export facilities and secondary demand from datacenters Using Enverus newest AI tool, Investor Analytics, to summarize comments about M&A markets from management teams in recent earnings calls reveals companies were already concerned about the asking prices for deals and available opportunities. "Volatility and lower prices make deals tough right now but will create opportunities for nimble buyers with a longer-term outlook," said Dittmar.
oil-gas
Apr 25, 2025