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Talos Energy announces a transaction with Pan American Energy to cross-assign interests in Block 2 and Block 31 offshore Mexico

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Talos Energy has announced that the company entered into a transaction with Hokchi Energy, a subsidiary of Pan American Energy to cross assign the company’s participating interest (PI) in Block 2 and Hokchi’s PI in Block 31, both in the Sureste Basin offshore Mexico. Under the agreed conditions for the swap, Talos will assign a 25% PI in Block 2 to Hokchi in exchange for a 25% PI in Block 31, which is immediately to the south of Block 2. Once the transaction is completed, Hokchi will be the operator of both blocks and Talos will own a 25% PI on Block 2 and a 25% PI on Block 31. The transaction is subject to approval by the Mexican oil & ...

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Shell agrees to sell upstream interests in Denmark to Noreco for $1.9 billion

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Shell, through its affiliate Shell Overseas Holdings, has reached an agreement with publicly listed Noreco to sell its shares in Shell Olie-og Gasudvinding Danmark B.V. (SOGU) for a consideration amount of $1.9 billion. SOGU is a wholly owned Shell subsidiary that holds a 36.8% non-operating interest in the Danish Underground Consortium (DUC). The sale is subject to regulatory approval and expected to be completed in 2019. The transaction’s effective date is 1 January 2017. ‘’Today’s announcement is consistent with Shell’s strategy to simplify its portfolio through a $30 billion divestment program, and contributes to our goal of reshaping the company into a world-class investment case,” Andy Brown, Shell’s Upstream Director, said.  As part of the agreement, Noreco will assume all of Shell’s ...

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Devon Energy provides operational update for Jackfish Complex

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Devon Energy has reported that additional facilities work at its Jackfish 1 heavy oil project in Alberta, Canada, is now complete, and full-scale operations have been restored. The work at Jackfish 1 was related to minor facility repairs the company identified during recent turnaround startup activities. The company elected to perform the incremental maintenance work that temporarily curtailed production as opposed to deferring the repairs to a future date. The company estimates that its Q3 2018 net production in Canada will be approximately 104,000 BOED as a result of the maintenance at Jackfish 1. The temporary curtailment of volumes at Jackfish represents less than 1% of total expected company-wide production in 2018. Production at the company’s Jackfish 2 and Jackfish 3 facilities were at nameplate ...

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Wood Mackenzie analysis shows US unconventionals are crucial to majors

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The Majors have made big strategic bets on the Lower 48. The scale, returns and investment flexibility offered by tight oil and gas has made it an essential part of most major players’ portfolios. ”US unconventionals have enormous potential – and the majors have taken note,” Roy Martin, a research analyst in Wood Mackenzie’s corporate upstream team, said. “Following BP’s US$10.5 billion deal with BHP, all of the supermajors have a footprint in the Permian Basin, and are poised to deliver an unprecedented phase of production growth that will see output reach new highs over the next decade.” Wood Mackenzie has released “The Majors in US Unconventionals”, an in-depth study on the International Oil Company’s comparative positions in the Lower 48. ...

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The changing US energy trade balance is still dominated by crude oil imports

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During the past decade, the US trade gap for energy products has narrowed. From 2003 to 2007, the value of energy imports was about 10 times greater than the value of exports. By 2017, imports were only about 1.5 times greater than exports according to data from the US Census Bureau. The primary US energy import is crude oil, which generally accounts for about two-thirds of the total value of energy imports. Petroleum products—including liquefied petroleum gas (LPG), gasoline, and diesel fuels—are the next largest category of imports, accounting for about 20% of the total value of energy imports. Canada is the largest US trading partner for energy products. In 2017, energy imports from Canada were valued at $73 billion. ...

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Maersk Drilling awarded new contract for jackup Maersk Intrepid

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Equinor has exercised two options extending the current contract for the jackup Maersk Intrepid by two months until June 2019. Further, Maersk Drilling and Equinor have signed a new five-month contract for the Maersk Intrepid, which will commence in direct continuation of the current extended contract. The new contract adds an additional four options of two months each. The Maersk Intrepid will be utilized for both drilling and accommodation activities at the Martin Linge field, with possible re-deployment to other Equinor-operated fields at a later stage. “We are proud to see Maersk Intrepid get the opportunity to continue on Martin Linge and contribute to the expected opening of production on the field in 2020,” Morten Kelstrup, CCIO  of Maersk Drilling, said. ...

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Maersk Drilling gets semi-sub contract offshore Timor-Leste

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Maersk Drilling and Eni as operator of the JPDA 11-106 Joint Venture have signed a one-well contract for the semi-submersible rig Maersk Deliverer for exploration drilling in the Timor Sea. The estimated duration of the firm contract is two months, expected to commence in March 2019. The contract contains an option for an additional well with an expected duration of an additional two months.

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Rowan completes previously announced sale of two jackups to ARO Drilling

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Rowan Companies has announced that it has concluded the sale of two LeTourneau TARZAN Class jackup rigs, the Scooter Yeargain and the Hank Boswell, to ARO Drilling. The net economic impact of this transaction was that Rowan received approximately $90 million in cash and $176 million in shareholder notes from ARO Drilling as consideration for the two rigs. In addition to Rowan’s 50% equity stake in ARO Drilling, Rowan now has a total of $445 million of shareholder notes from ARO Drilling. By agreement of the parties, this transaction will be reflected to have occurred as of 1 October 2018, at which point the Scooter Yeargain and Hank Boswell each will be deemed to have commenced a new three-year contract with Saudi ...

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ADNOC and BHGE form strategic partnership

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The Abu Dhabi National Oil Company (ADNOC) and Baker Hughes (BHGE) signed a strategic partnership agreement that will enable and support the growth and development of ADNOC’s subsidiary, ADNOC Drilling, into a fully integrated drilling and well construction provider. As part of the agreement, BHGE will acquire a 5% stake in ADNOC Drilling. The transaction values ADNOC Drilling at approximately $11 billion. BHGE will be the sole provider of certain proprietary leading-edge and differentiated equipment and technologies related to the integrated drilling offering, supporting ADNOC Drilling’s growth. Together, ADNOC and BHGE will deliver more competitive well completion times, greater drilling efficiencies and better well economics, and will capitalize on new business opportunities as ADNOC Drilling grows through its new expanded offering. ...

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Ensco and Rowan Companies agree to combine

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Ensco and Rowan Companies jointly announced that the companies have entered into a definitive transaction agreement under which Rowan will combine with Ensco in an all-stock transaction. The definitive transaction agreement was unanimously approved by each company’s board of directors. The Saudi Aramco partner to the ARO Drilling joint venture has consented to the combination between Rowan and Ensco. Under the terms of the transaction agreement, Rowan shareholders will receive 2.215 Ensco shares for each Rowan share. Upon closing, Ensco and Rowan shareholders will own approximately 60.5% and 39.5%, respectively, of the outstanding shares of the combined entity. There are no financing conditions for this transaction. The combined company expects to realize annual pre-tax expense synergies of approximately $150 million, ...

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