Wednesday, May 22, 2019

Oil Assets News

Occidental Agrees to Sell Anadarko Assets to Total

Image: Anadarko Petroleum

Texas-headquartered Occidental Petroleum has reached an agreement to sell Anadarko Petroleum's oil and gas assets in Africa to French oil major Total for $8.8 billion.The binding agreement with Occidental to acquire Anadarko’s assets in Africa (Algeria, Ghana, Mozambique, South Africa) is contingent on a successful completion of Occidental’s ongoing bid for Anadarko.Wood Mackenzie research director Nicholas Browne says the move would make Total the second largest international oil company (IOC) LNG seller after Shell…

Occidental Tops Chevron's Bid for Anadarko

(Photo: Anadarko Petroleum)

Occidental Petroleum Corp on Wednesday started the first takeover battle for a major oil company in years, offering $38 billion for Anadarko Petroleum Corp, a bid that topped a $33 billion offer by Chevron Corp.Both suitors are offering a premium for Anadarko's holdings in the Permian Basin of West Texas and New Mexico. The vast shale field holds oil and gas deposits that can produce supplies for decades using new, low-cost drilling techniques.Occidental's surprise $76-per-share bid is valued at $57 billion, including debt.

Mexico President's Pemex Plans Rattle Debt-holders

Mexican President Andres Manuel Lopez Obrador (Mexican Government photo)

Mexican President Andres Manuel Lopez Obrador's declaration of war on "neo-liberal" economics has shaken investors holding Petroleos Mexicanos bonds, fueling concern about the future of the highly-indebted state oil company he has pledged to revive.Ratings agencies and three managers spoken to by Reuters at funds that either hold Pemex paper or recently sold it said proposals floated by the government to build a new refinery and give the state a bigger role in the oil industry could put fresh strain on the company…

DNV GL sees oil demand peaking in 2023

(Photo: Eric Haun)

Global oil demand will peak in 2023 as electric vehicles (EVs) become competitive with cars fuelled by petrol and diesel, and after 2040 no new oil developments will likely be needed, quality assurance and risk management firm DNV GL said on Monday.The forecast from the Norway-headquartered firm, which offers certification and consultancy services to around 100,000 customers globally, adds to investors' worries about some oil assets becoming stranded if demand enters into permanent decline."Amid declining consumption in the future…

As Mexico Oil Sector Sputters, Crime and Violence Rattle Industry Towns

Until recently, Edgar Barrera enjoyed a life many Mexicans could only hope for. In a few short years, the 36-year-old bookkeeper rose from handyman to white-collar worker at what seemed to be one of the most stable companies in Latin America: state-owned oil firm Pemex. Thanks to Pemex, Barrera met his wife, vacationed on the Mayan Riviera and envisaged a rewarding career without leaving his hometown in Tabasco, a rural state at the southern hook of the Gulf of Mexico where more than half the population lives on less than roughly $92 a month. Then everything changed.

Saudi Aramco Restructures Non-oil Assets ahead of IPO

Saudi Aramco has created a subsidiary to house its multibillion-dollar pension fund and could spin off its aviation division, sources said, as it restructures some assets not related to oil and gas ahead of its planned initial public offering (IPO).The move is designed to streamline Aramco's operations and could make it easier to value since its business risk would be clearer and that may help it achieve a higher price for its shares, financial and industry sources told Reuters."This makes Aramco a leaner company…

Ghana to Launch First Exploration Licensing Round in Q4 2018

© DJ / Adobe Stock

Ghana will launch its first exploration licensing round in the last quarter of this year offering about six offshore blocks, deputy energy minister Mohamed Amin Adam said. Ghana currently produces 200,000 barrels of oil per day (bpd), led by its flagship Jubilee field which produces about 100,000 bpd, he said. The west African nation, which became a significant oil producer in 2010 when it began pumping from the offshore Jubilee field, is keen to unlock its vast oil and gas resources.

Russneft: No Plans to Merge with Neftisa

Russian oil producer Russneft said on Thursday that it had no plans to merge with Neftisa, but said the idea had been discussed many times. Russneft was responding after sources told Reuters that Russia's top state lender Sberbank opposed a plan by billionaire Mikhail Gutseriyev to merge his oil assets, Russneft and Neftisa, into one firm and replace co-owner Glencore. Russneft said in a statement on Thursday that Glencore would remain its main partner. "The idea of uniting Russneft and Neftisa has been spoken of many times…

Enerplus Profit Beats as Oil Focus Pays Off

Photo: Enerplus Corp

Canadian oil and gas producer Enerplus Corp reported a quarterly profit that beat estimates on Friday as the company's strategy to focus on oil assets paid off. Shares of the company, which has historically produced more natural gas than oil, were up as much as 4.5 percent. Enerplus, which has significant operations in the United States, recently entered the Denver-Julesburg Basin in Colorado and has said it expects oil to account for 55 percent of its overall production this year.

Pampa Energia to Sell $360 Mln in Oil Assets

Argentine group Pampa Energia said on Wednesday it has agreed to sell $360 million in oil assets to local company Vista Oil & Gas, which is headed by the former head of state oil company YPF, Miguel Galuccio. The deal is in line with the Pampa Energia's strategy of focusing its investments in electric power generation and exploration and production of unconventional natural gas, the company said in a letter to the Buenos Aires Stock Exchange. The letter said it includes the sale…

Sinopec to Sell Argentina Oil Assets for up to $600 Mln

China's Sinopec has decided to sell its oil assets in Argentina for $500 million to $600 million to Mexican company Vista Oil & Gas, a source with knowledge of the deal told Reuters on Tuesday. Sinopec informed Vista Oil & Gas of its decision on Monday, according to the source, who asked not to be named because the deal was confidential. Sinopec also told competing bidders including Argentina's state-controlled oil company YPF and private Argentine company Pluspetrol they had not been selected, the source said. YPF, Pluspetrol, and Vista Oil & Gas declined to comment.

Buyers Eye Sinopec's Argentina Oil Assets

Sinopec's Argentine assets worth about $750 mln-$1 bln; Sonangol, Rosneft among potential suitors. Advisers to China's Sinopec have offered its oil assets in Argentina to about a dozen potential suitors, three sources familiar with the matter said, as losses and labour headaches prompt Asia's largest refiner to pull out. The Argentine oil and gas assets, mainly in the southern province of Santa Cruz, could be worth $750 million to $1 billion, one of the sources said. That would…

Venezuela Discussing Citgo Collateral Swap with Rosneft

Reuters exclusively reported in July that Rosneft was negotiating to switch its collateral in the refiner for oilfield stakes and a fuel supply deal - a move to avoid complications from U.S. sanctions and legal problems, sources said at the time. State-owned Rosneft holds a 49.9 percent collateral in Citgo for a loan last year of about $1.5 billion to the OPEC nation, which is reeling from low oil prices and a severe recession. Further details were not immediately available. The arrangement with Venezuela's state-owned oil firm, PDVSA, has drawn fire from U.S.

Shell to Shed Iraqi Oil Assets

Royal Dutch Shell is set to end a century of oil production in Iraq by withdrawing from two of the Arab state's flagship fields to focus on more profitable gas development. Shell's retreat highlights the challenges foreign operators face with low-margin oil contracts in Iraq, an OPEC member that sits on some of the world's biggest oil reserves and wants to boost production after years of conflict hindered development. The Anglo-Dutch firm said on Wednesday it had agreed with Iraq's…

Will Saudi Aramco Deliver Record Profit for IPO?

Saudi Aramco is world's biggest oil producing company; but valuation demands annual earnings around $130 billion. When oil giant Saudi Aramco discloses its financials for the first time next year, it must either surprise investors with world record profits or reduce its aspirations for a $2 trillion valuation in its initial public offering (IPO). Investors have long debated whether Aramco could be valued anywhere close to $2 trillion, the figure suggested by Saudi Crown Prince Mohammed bin Salman…

PDVSA Defends Relationship With Russia

Venezuela's alliance with Russia is "perfect," the president of state oil company PDVSA said on Friday, blasting what he said was a U.S.-led attempt to sully the growing ties between the two nations. Reuters last week published a Special Report revealing that Venezuela's unraveling socialist government is increasingly turning to Russia for the cash and credit it needs to survive and offering prized state-owned oil assets in return, sources familiar with the negotiations told Reuters.

U.S. Senators Against Blockade of Venezuela Oil Cargoes

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

Four U.S. Senate Republicans from oil refining states urged the Trump administration on Thursday to not block oil shipments from Venezuela as part of U.S. sanctions against the country, saying it could raise costs for U.S. fuel consumers. The United States sanctioned President Nicolas Maduro and other Venezuelan officials after Maduro established a constituent assembly run by his Socialist Party loyalists and cracked down on widespread opposition. It has not placed sanctions on the OPEC member's oil industry.

New UK Rules Could Lure Others Beyond Aramco

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

FCA proposed listing category tailored for state-owned firms; Critics say new listing could roll back on sensible reform. Proposed changes to Britain's listing regime are likely to attract a series of state-backed companies to London's stock markets as governments in oil rich states prepare for a wave of asset sales. However some investors and corporate governance groups say Britain's move to make its capital markets attractive to state-controlled firms by loosening some of the…

Britain Seeks Looser IPO Rules as it Lures Saudis

FCA proposes new "premium" listing for state-backed firms; sovereign companies could be exempt from certain rules. Britain wants to loosen rules on listing state companies, a move that critics say is designed to help London win the lucrative IPO of Saudi Arabian oil giant Saudi Aramco <IPO-ARMO.SE> but could weaken minority investor protection. The Financial Conduct Authority's proposals on Thursday would create a new listing category for companies controlled by sovereign states and come as exchanges around the world are vying to win the Aramco listing…

Cenovus to Face Investors as Shares Decline

Cenovus Energy Inc will seek on Tuesday to convince investors of the value of an unpopular acquisition this year amid continuing skepticism from shareholders. At an annual investor event in Toronto, Chief Executive Brian Ferguson is expected to unveil plans for asset sales to cut debt assumed for the C$17 billion ($12.9 billion) March purchase of some ConocoPhillips assets in Canada. The deal effectively doubled Cenovus' assets, a move the company has said would allow it to utilize economies of scale to lower costs.