Wednesday, July 15, 2020

Blackstone News

Price Drop Triggers Haggling Over Oil and Gas Deals

Premier Oil is working to buy the Andrew platform and BP's controlling stake in five surrounding fields, as well as its minority stake in the Shell-operated Shearwater field (Photo: BP)

The collapse in oil prices to 21-year lows has led potential buyers of oil and gas fields to try and renegotiate deals already agreed at higher prices, with the first examples emerging of sellers having their hand forced.At a time when most oil companies are slashing budgets, dividends, and headcounts to preserve cash, sellers are facing a difficult…

Coronavirus Paralyzes Oil, Gas Sales into China

© Riekelt / Adobe Stock

Short-term sales of crude oil and liquefied natural gas into China almost ground to a halt this week as the coronavirus slows economic activity and cuts demand and buyers ponder legal action to avoid having to honor purchase agreements, trade sources said.Typically, trade would have revived after the Lunar New Year holiday at the end of January…

Next Wave of U.S. LNG Export Projects to be Tougher

Photo courtesy of Venture Global LNG

The next wave of U.S. liquefied natural gas (LNG) export projects will be “tougher” to bring online, as companies with existing facilities take advantage of lower costs to expand capacity in coming years, the chief executive of Blackstone Group said on Wednesday.Blackstone CEO David Foley said at the Gastech Energy Conference in Houston that only…

Petrobras Nears Terms Over TAG Pipeline Sale

© Vladimir Gerasimov / Adobe Stock

Brazil’s state-controlled oil company Petróleo Brasileiro could present a new sale and purchase agreement (SPA) before the end of December for the sale of the Transportadora Associada de Gás (TAG) pipeline, after a Brazilian Supreme Court injunction in July stalled the sale.The sale of TAG, which operates natural gas pipelines in Brazil’s north and northeast…

Blackstone Energy Partners Acquires Ulterra Drilling Technologies

Image: Ulterra Drilling Technologies

Blackstone Energy Partners announced today that it has entered into binding agreements to acquire a controlling, majority interest in Ulterra Drilling Technologies from affiliates of American Securities LLC. American Securities and certain members of management will retain a minority equity interest in the Company going forward. Financial terms were not disclosed. The transaction is expected to close prior to year-end 2018.

Commodities Ride Rollercoaster on $100 Oil Talk

File Image (CREDIT: AdobeStock / © Lucadp)

Oil highest in over 3 yrs on report Saudis want higher prices; nickel sees biggest jump in 6-1/2 years on sanctions worries. Talk that Saudi Arabia has its sights on $80-$100 a barrel oil again and of more U.S. sanctions on Russia ignited a rally in commodities and resource stocks on Thursday, though the potential boost to inflation hit fixed-income assets.

North American Energy IPOs Set to Rebound in 2018

File Image: Credit DSM

Higher oil prices and a positive earnings outlook for energy companies are expected to fuel a rebound in North American oil and gas initial public offerings in 2018, with bankers betting investors will remain optimistic about the sector even if the broader stock market remains volatile. IPOs in the United States and Canada could reach their highest in four years…

Shell, Blackstone in Joint Bid for BHP's Shale Assets

File Image (CREDIT: AdobeStock / (c) Edelweiss)

Royal Dutch Shell Plc and American private equity firm Blackstone Group LP are working on a joint bid for BHP Billiton Plc's U.S. shale assets for $10 billion, Sky News reported. The shale auction is expected to lead to a deal later this year, Sky News said. BHP had put up the U.S. shale assets for sale last year. BHP declined to comment. Shell and Blackstone could not be immediately reached for comment.

Unrest Spurs Oil to Highest Level Since 2015

File Image (CREDIT: AdobeStock / (c) scanrail)

Oil rose further above $68 a barrel on Thursday to the highest since May 2015, supported by unrest in Iran that has raised concerns about supply risks, cold weather in the United States which is boosting demand and OPEC-led output cuts. Six days of anti-government protests in OPEC's third-largest producer have added a geopolitical risk premium to oil prices, although Iran's production and exports have not been affected.

Brazil's Patria Investimentos Targets Natural Gas, Renewables

Brazilian investment firm Pátria Investimentos Ltda is targeting infrastructure investments in natural gas and renewable energy, partner Otávio Castello Branco told journalists on Wednesday. A fund managed by the investment firm was awarded in March via an auction the right to operate several highways in São Paulo, Brazil's richest state. In April, Pátria also won rights to build and operate power transmission lines.

Blackstone to Buy EagleClaw Midstream

EagleClaw Midstream Ventures LLC, the largest privately held operator of pipelines and processing facilities in West Texas' Delaware Basin, said it agreed to be bought by funds managed by Blackstone Group LP for about $2 billion. Private-equity funds, including Blackstone, Carlyle Group , and CVC Partners, have built up significant firepower in recent years to invest in the oil and gas industry…

Blackstone to buy EagleClaw Midstream

File Image (CREDIT: AdobeStock / (c) pisotckii)

EagleClaw Midstream Ventures LLC said on Monday it agreed to be bought by funds managed by Blackstone Group LP for about $2 billion. EagleClaw Midstream Ventures LLC, which owns and operates natural gas pipelines and processing facilities, said the all-cash deal includes about $1.25 billion in debt, financed by Jefferies LLC. EagleClaw is the…

Blackstone Mulls Stake in ETP Assets

Private-equity firm Blackstone Group LP is in talks to buy a stake in assets owned by Energy Transfer Partners LP, the company building the controversial Dakota Access pipeline, a source familiar with the situation said on Thursday. Blackstone is discussing joining the deal with Jamie Welch, who previously served as chief financial officer of ETP parent Energy Transfer Equity LP.

U.S. Shale Back in Business, Buoyed by OPEC, Trump

U.S. shale producers are redeploying cash, rigs and workers, cautiously confident the energy sector has turned a corner after Donald Trump's election victory and OPEC's recent signal that it plans to curb production. The downturn produced a leaner, more efficient U.S. shale industry that was forced to develop and quickly adapt new technology to…

Shell's U.S Deal to Unlock Global Asset Sales

Shell lines up large North Sea asset sale; Gulf of Mexico deal sets deal value at $60/bbl. Royal Dutch Shell's first oil field sale after its $54 billion BG Group acquisition bodes well for its disposal talks in the North Sea, Gabon and New Zealand, according to sources, signalling buyers will meet its expectations on value. The $425 million deal…

Shell's US Deal to Unlock Global Oil Asset Disposals

The $425 million deal in the Gulf of Mexico is welcome news for the Anglo-Dutch oil and gas giant which has struggled to kick off its plan to dispose of $30 billion of assets by 2018 or so in order to pay for the February deal and maintain a generous dividend policy amid soaring debt. The sale of the Brutus/Glider fields to U.S. independent oil and gas company EnVen Energy Corp has an implied oil price of around $60 a barrel…

Blackstone to Invest $1.5 Bln in Permian Basin

Asset manager Blackstone Group LP will invest about $1.5 billion in the oil-rich Permian basin, in Texas and New Mexico. The company said it would partner with oil and gas company Jetta Operating Co Inc to create Jetta Permian, which will spend $1 billion on assets in the Delaware Basin, located in the larger Permian basin. Blackstone also said it would spend $500 million on future acquisitions…

Siccar Point Announces First N. Sea Oil Deal

Venture acquires 8.9 pct stake in Mariner Field; deal highlights growing private equity role in region. Private equity-backed oil and gas venture Siccar Point Energy announced its first North Sea investment on Tuesday and said it planned to do more deals over the next year as cash-rich firms step up activity after a two-year rout in the sector.

China Three Gorges to buy German Wind Park

China Three Gorges, which operates the world's largest hydropower plant on China's Yangtze river, will buy German offshore wind park Meerwind from U.S. buyout firm Blackstone, the companies said on Monday. The terms of the sale were not disclosed but people familiar with the process have told Reuters that they expected it to be valued at around 1.6 billion euros ($1.8 bln).

Private Equity Warms up to Oil

Nearly half of PE funds expect a deal by mid 2017; North America remains focal point of deals. The world's private equity funds, with a cash pile of around $1 trillion, are stepping up their interest in the oil and gas industry, with almost a half expecting to buy assets in the sector over the next year, a survey showed on Tuesday. Funds' appetite…