Tuesday, July 16, 2019

Potential Buyers News

Venezuela Sells Oil to Tiny Turkish Firm

© Anatoly Menzhiliy / Adobe Stock

With U.S. sanctions blocking Venezuela from selling oil to the United States, state-owned energy firm PDVSA has turned to several little-known buyers that include a tiny Turkish company with no refineries but ties to President Nicolas Maduro's government, according to internal documents and a PDVSA source.Until recently, some of the world's largest petroleum and refining firms, including U.S. companies Chevron and Valero Energy, lined up to take Venezuelan oil cargoes and PDVSA had a rigorous vetting process to ensure potential buyers had the capacity to pay.But U.S.

Oxy Plans to Sell Parts of Anadarko

Deal-makers say most likely sale prospects are Anadarko's offshore assets in the Gulf of Mexico and its pipeline business. (Photo: Anadarko)

Occidental Petroleum snatched up some of the richest shale oilfields in Texas when it beat out rival Chevron Corp in a bidding war to acquire Anadarko Petroleum.It also quadrupled its debt - to $40 billion - at a time when investors are calling for spending cuts and higher dividends.That means the acquisition's success will depend on how quickly Occidental can sell off some of Anadarko's assets and focus on optimizing and integrating the assets it keeps - especially prime U.S. shale fields.Shedding debt will require selling assets when deals have been sluggish, said bankers and merger specialists.

UK Decommissioning Tax Relief Estimate in Question

© Alan Smillie / Adobe Stock

Britain's public spending watchdog on Friday questioned a government estimate of 24 billion pounds ($31 billion) as the cost of tax relief to decommission oil and gas infrastructure.As one of the oldest and most mature oil basins, Britain's North Sea represents the world's biggest decommissioning project, with the Oil and Gas Authority estimating operators will need to spend around 60 billion pounds.The government has given oil and gas operators different kinds of tax relief designed to revive investment in the British North Sea…

BP Launches $3 Bln Sale of US Onshore Assets

(File photo: BP)

Britain's BP has launched the sale of U.S. oil and gas onshore assets that could raise more than $3 billion to help pay for other fields in the United States it bought in October from BHP, industry and banking sources said.The sale proceeds will partly fund the $10.5 billion acquisition of BHP's onshore assets that are mostly around oil-producing fields in Texas and Louisiana. BP had said it would sell $5 billion to $6 billion to finance the deal.The London-listed firm wants to focus on production…

Settlement Reached in Petrobras' Texas Refinery Emissions Case

(Photo: Petrobras)

A U.S. unit of Brazilian state-run company Petrobras agreed to pay $3.5 million to settle a lawsuit over alleged toxic emissions from its Pasadena, Texas, oil refinery, two environmental groups said.The settlement comes in the midst of the company's efforts to sell the refinery. The deal is subject to approval by a federal judge.Petrobras did not respond to a request for comment.Under the terms of the agreement, Petrobras subsidiary Pasadena Refining System Inc (PRSI) will pay $3.175 million…

Oil Major Eni Pulls Out of Race for RTR Solar Assets in Italy

© Zsolnai Gergely / Photo: Adobe Stock

Italian oil major Eni has pulled out of a race to buy Terra Firma's solar power assets in Italy, a company spokesman told Reuters on Tuesday.The British private equity firm is looking to sell its Rete Rinnovabile, known as RTR, solar portfolio in Italy in a deal expected to fetch more than 1 billion euros ($1.17 billion).If successful, the transaction will be Italy's largest solar energy sale in a fragmented industry that has come under pressure to consolidate to counter the withdrawal of…

Turkey's Gama in Talks About Selling Energy Stake

Photo courtesy of Gama

Turkish conglomerate Gama Holding is in talks with Malaysia's Tenaga Nasional and other potential buyers about a sale of its 50.5 percent stake in its Gama Enerji energy unit, three sources said, as part of a $1 billion debt restructuring.Gama, which has businesses spanning oil, cement, petrochemicals and natural gas, is the latest Turkish company to attempt to restructure foreign-currency debt amid a sell-off in the lira. It is in talks with nearly 20 banks on restructuring some $1 billion worth of debt…

SandRidge Says Approached by 17 Potential Buyers, Including Icahn

Logo: SandRidge Energy

SandRidge Energy Inc said on Friday it had been approached by 17 potential bidders for a buyout, including billionaire Carl Icahn who is fighting for control of the oil and gas producer's board.Icahn has criticized SandRidge's leadership, forced the removal of its chief executive officer and got the company to back out of its planned buyout of rival Bonanza Creek Energy Inc .The investor, who said in April he was willing to buy the company, will now have to battle 16 other potential suitors…

Enbridge Eyes Additional Asset Sales

Photo: Enbridge

Enbridge Inc may sell more assets than expected this year, seeing strong interest from potential buyers after achieving a goal this week for 2018 divestitures.Enbridge has been under pressure to reduce leverage, one of the factors that has weighed on its share price. Selling assets would also help the company become a pure pipeline utility.The company announced two sales on Wednesday that will help it exceed its target for $3 billion in divestitures this year, but more deals are being discussed."A…

UAE's Stanford Marine in Talks to Restructure $325 mln in Debt

Photo: Standford Marine Group

Stanford Marine Group <IPO-SFMG.L>, majority owned by a fund managed by private equity firm Abraaj Group, is in talks with banks to restructure a $325 million Islamic loan, banking sources said. The Dubai-based oil and gas services firm, which has struggled as a result of a downturn in the hydrocarbons market, has asked banks to consider extending the maturity of its debt and restructuring repayments, the sources said. Although the company, which operates a fleet of offshore supply vessels that service the oil and gas industry…

Texas LNG Inks Non-Binding Deals with Foreign Buyers

An LNG Carrier at Sea (CREDIT: MISC)

Six out of 8 potential buyers have LNG terminals. Texas LNG has signed eight non-binding deals with potential buyers of liquefied natural gas (LNG) in China, southeast Asia and Europe, the company's chief executive said on Wednesday. They include five in China, two in southeast Asia and one in Europe, said Vivek Chandra, chief executive of Houston-based Texas LNG, declining to name the companies citing confidentiality reasons. The Chinese customers are a mix of large provincials, independent companies and small local governments…

Endeavour Energy Kicks Off North Sea Assets Sale

Photo: Endeavour Energy UK

Endeavour Energy UK has launched the sale of its North Sea oil and gas assets at an ambitious price target of $500 million, according to two industry sources and a document seen by Reuters. The sale is part of group asset sales after Endeavour's U.S. parent company filed for bankruptcy in 2014. The UK company and its administrators have hired audit firm Deloitte as their corporate finance advisor on the sale, dubbed "Project Arrow", the document showed. Information documents for the portfolio…

China's Crude Futures Face Challenges: Russell

China's new crude futures contract faces a mountain of obstacles to overcome if it is to establish itself as a viable benchmark for trading with the world's largest oil importer. The Shanghai International Energy Exchange (INE), which is part of the Shanghai Futures Exchange, said on Feb. 9 it would launch the much-delayed contract on March 26. In theory, this will give China a powerful tool to shake up global crude trading by offering pricing and hedging in the heart of the world's biggest market for imported crude.

Asia's Soaring Gas Demand Beckons New LNG Projects

File Image: A typical LNG Carrier (CREDIT: GAC)

Global LNG imports rose by 20 percent in 2017; new demand emerges across South, Southeast Asia. Soaring gas demand from China, India and Southeast Asia is sucking up an LNG supply glut previously expected to last for years, opening opportunity for new production from East Africa to North America that had been deemed part of the overhang. Trade flows in Eikon show global liquefied natural gas (LNG) imports have risen 40 percent since 2015, to almost 40 billion cubic metres (bcm) a month. Growth accelerated in 2017, with imports up by a fifth, largely due to China, but also South Korea and Japan.

Med Diesel Diffs at 21-month High

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

A closed arbitrage from other regions and refinery shutdowns have tightened the Mediterranean diesel market driving cargo premiums to ICE gasoil futures to their highest since August 2015. "It's almost impossible to find cargoes for the first half of May in the Mediterranean," one trader active in the region said. "Arbitrage from the U.S. (into the Mediterranean) is not really working, or just working on a 10-minute basis so nobody is able to fix cargoes," he added. As a result, delivered…

British Investors Wary of Aramco as London Courts Listing

While Britain's stock exchange pulls out all the stops to woo Saudi Aramco, some leading British fund managers who would be among potential investors have expressed reservations about the oil titan's corporate governance and valuation. The Saudi government values the state firm at $2 trillion and plans to sell a stake of around 5 percent next year in what is expected to be the largest stock market listing in history. Global financial centres from London to New York and Hong Kong are vying for a piece of the action.

Embattled Noble Receives Interest for Oil Unit

Struggling commodity trader Noble Group Ltd has been approached by potential buyers for its oil business, the Financial Times newspaper reported on Monday, citing four people familiar with the matter. Noble has been sounded out by rival trading companies about buying parts of its Americas-focused oil unit but has so far resisted entering into discussions, the FT reported. It did not name any potential buyers. Noble had no immediate comment when contacted by Reuters. A sale of the entire business or part of it would help raise much needed capital at Noble…

Petronas Set to Auction Kimanis Crude on Dubai Exchange

Malaysia's Petronas is set to auction one of its crude grades on the Dubai Mercantile Exchange, according to sources familiar with the matter, making the state-owned company the first to sell a non-Middle East oil on the trading platform. Petronas has plans to offer September loadings of its Kimanis crude grade next month, the industry sources said. DME documents - updated in June and posted on the exchange's website - indicate Petronas trading arm Petco is looking to sell the Kimanis grade over the Dubai platform, although without providing any details on volumes or timing.

Cenovus Facing Tough Market for Critical Asset Sales

Photo: Cenovus Energy

Cenovus Energy Inc's efforts to sell C$5 billion ($3.8 billion) of energy assets, already facing a rocky road because weak oil prices are depressing the appetite for deals, has become complicated by the surprise departure of its chief executive officer, fund managers said. Brian Ferguson's announcement on Tuesday that he will step down as CEO in October is the latest sign of tumult within Canada's oil sands industry, which has seen international oil majors dump $22.5 billion in assets this year alone.

BHP Hires Four Banks for U.S. Shale Exit

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

BHP hires Barclays, Citi, BAML and GS. BHP , the world's largest miner, has asked four investment banks to help it prepare for either a sale or spin-off of its underperforming U.S. shale oil and gas unit, with a view to taking a decision in early 2018, sources said. BHP said in August it aimed to sell its unconventional onshore shale assets in the Eagle Ford, Permian, Haynesville and Fayetteville basins, which it acquired at the height of the oil boom and could be valued at more than $10 billion.