HitecVison Buys ExxonMobil Assets

HitecVision and its subsidiary Point Resources have signed a deal to acquire ExxonMobil’s operated upstream assets in Norway for an undisclosed sum.

“The business will be acquired by and combined with Point Resources to create a strong, new mid-sized Norwegian E&P company,” HitecVision said.

The assets to be acquired comprises ExxonMobil’s operated interests in the producing Balder (100%), Ringhorne (100%), and Ringhorne Øst (77%) fields; the partially developed Forseti Field (100%); the Jotun Unit, where production ceased in 2016 (90%); and adjoining exploration areas that contain a number of undrilled prospects.

The deal also includes the Jotun A floating production facility and ExxonMobil’s Sandnes offices.

“HitecVision and Point Resources intend the combined company to make further material investments in the acquired assets in order to extend field life and to maximize oil and gas recovery,” HitecVision said. “On completion of the deal, the combined company will become one of the top independent oil and gas producers on the NCS [Norwegian Continental Shelf]. Production in 2016 from the combined assets was about 60,000 boe/d, of which about 54,000 boe/d is from the ExxonMobil-operated fields.

The combined company has the potential to grow its production base organically to more than 80,000 boe/d by 2022 with reserves and contingent resources of about 350 MMboe, according to HitecVision.

Wood Group Estimates Higher Savings From Amec Foster Deal

Oil services company John Wood Group Plc said it expected about 36% more cost savings from its deal to buy Amec Foster Wheeler Plc for 2.2 billion pounds (US$2.7 billion) than it first estimated when announcing the deal in March.

Wood Group said it has been able to increase the expected level of pretax cost synergies from at least 110 million pounds (US$137 million) to at least 150 million (US$187 million) per annum by the end of the third year after the deal closes.

Cost savings would come from operating, corporate and administration efficiencies, Wood Group said.

Wood Group agreed to buy Amec Foster in March, seeking rewards from the fast-growing U.S. shale energy sector.

Wood Group, a 35-year old company based in the Scottish city of Aberdeen, grew out of helping companies in the now declining North Sea oil basin. It said the deal would enable it to expand in areas best placed to benefit from an upturn in commodity prices, notably the U.S. onshore shale oil and gas sector.

Proserv Enters Partnership With JDR In West Africa

Proserv and JDR has formed an alliance in West Africa to provide operators with enhanced subsea technology to support their life of field services requirements in the region, a news release said.

The partnership will enable Proserv to push its services and expertise into a region where JDR has a presence.

“Proserv has worked well with JDR for many years, and this partnership will allow us to build on our long and successful track record through the delivery of world class subsea technology solutions and services to our customers in Nigeria, strengthening Proserv’s presence in the country,” said Proserv country manager Olu Phillips, who is based in Lagos.

For JDR, the alliance enables the company to “increase local content support for projects in Nigeria and the wider region,” said Carl Pilmer, sales director for oil and gas at JDR. “Almost every project in the deepwater basins off West Africa includes a JDR-supplied umbilical, and this partnership marks the next step in our strategic plan to offer our customers high quality, reliable products and services on a global scale.”

Schlumberger Takes Stake In Borr Drilling, CEO Says

Schlumberger Ltd. has bought a stake in upstart rig operator Borr Drilling.

The investment was made through a newly created venture fund, which has the ultimate goal of securing more activity for Schlumberger, CEO Paal Kibsgaard said in a statement.

He did not disclose the size of the investment, and the company was not immediately available for comment.

Norwegian financial daily Finansavisen reported on March 28 that Schlumberger had taken a 20% stake in Borr through a $220 million investment.

Guy Arrington, president of M-I SWACO-Schlumberger, said the center plans to enhance oil and gas production in any environment regardless of difficulty by using proprietary technologies for product development, testing, sensitivity studies and modeling operating scenarios.

Schlumberger's unique integrated production workflows combine the testing of reservoir fluids with advanced chemistry to support the development of specifically tailored chemicals and facilitate the testing of formulations under customer-specific conditions, the press release said.

Ocean RIG Files For Bankruptcy Protection In US

Ocean RIG UDW Inc., a Cyprus-based rig contractor, filed for Chapter 15 bankruptcy protection in a U.S. court amid a deep and prolonged downturn in the industry.

Shares of Ocean Rig plunged 61% to 27 cents in morning trading on March 28. The company had $3.25 billion in debt as of Dec. 31, according to its latest annual filing.

Ocean Rig said March 28 it had entered into an agreement with creditors representing more than 72% of the company's debt for a financial restructuring.

Under U.S. bankruptcy laws, Chapter 15 grants a foreign company protection from creditors looking to seize its assets in the country.

As the price of crude has fallen by more than 50% since 2014, oil firms have cut back on rig hires, leaving many vessels idle and prompting owners to restructure operations to preserve cash.

However, global oil prices have rallied recently, prompting oil and gas producers to ramp up spending.

Some companies though have lagged as surplus offshore rigs built during the boom are now lying idle, while debt repayments must still be honored.

Bigger rival Seadrill Ltd., which is saddled with $14 billion in debt and liabilities, said last month that it may have to file for Chapter 11 bankruptcy protection if it fails to reach a restructuring agreement with its lenders. Last year, Hercules Offshore Inc. filed for bankruptcy protection, just six months after emerging from its first bankruptcy.

Ocean RIG filed for bankruptcy in the U.S. Bankruptcy Court for Southern District of New York on March 27.

—Reuters & Staff Reports

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