Anadarko Makes Leadership Changes, US Onshore EVP Departs

Anadarko Petroleum Corp. has consolidated its leadership structure as it sheds noncore assets and focuses on delivering improved returns.

The company said on Oct. 4 that Brad Holly, formerly executive vice president (EVP) of U.S. onshore E&P, is leaving the company to pursue other interests.

Danny Brown, who served as EVP of international and deepwater operations has been named EVP of U.S. onshore operations. The role change, which took effective immediately, puts Brown over Anadarko’s upstream and midstream activity in Colorado, Texas, Utah and Wyoming.

Mitch Ingram, formerly EVP of global LNG, has stepped into the position of EVP of international and deepwater operations and project management. He will oversee Anadarko's development and production activities in Algeria, Ghana, the Gulf of Mexico and Mozambique, Anadarko said. In addition, Ingram assumes responsibility for Anadarko’s worldwide project management and construction activities.

In addition, Ernie Leyendecker, formerly EVP of international and deepwater exploration, has been named EVP of exploration, with responsibility for Anadarko’s global exploration efforts. U.S. onshore exploration is being combined with Leyendecker’s prior duties, consolidating all of the company's exploration activities under his direction, the company said.

Lorenzo Simonelli Named As Chairman Of BHGE Board

The board of directors for Baker Hughes, a GE company (BHGE), has named BHGE President and CEO Lorenzo Simonelli as chairman of the board, effective Oct. 2.

Simonelli will continue in his president and CEO role, which he has held since the closing of the combination of Baker Hughes Inc. and GE’s Oil and Gas business on July 3. Simonelli replaces former GE chairman and CEO Jeff Immelt, who retired from the BHGE board of directors, effective Oct. 2.

In addition to Immelt’s departure, BHGE board member Larry Nichols has decided to resign from the board. Nichols served as a member of the legacy Baker Hughes Inc. board.

With these two resignations, BHGE has reduced the size of its board to nine members and has named current GE-designee BHGE board member W. Geoffrey Beattie as the new lead director.

GE owns about 62.5% of BHGE and retains five designated seats on the BHGE board.

Atlantic Petroleum CEO Resigns

Atlantic Petroleum’s Ben Arabo has tendered his resignation as CEO of Atlantic Petroleum, the company said on Sept. 29.

Arabo will leave the company to take up a Faroe Islands based post, but will remain in place as CEO until Dec. 1.

The board will announce his replacement as CEO in the near future.

Maersk Oil CEO To Step Down After Total Takeover

Maersk Oil CEO Gretchen Watkins will leave the company when Total’s acquisition of the company has been completed, Maersk said.

Watkins joined Maersk Oil as COO in January 2014 and took the role of CEO in October 2016. Prior to joining Maersk Oil, she had worked at Marathon Oil and BP.

Total agreed last month to buy the oil and gas business of A.P. Moller-Maersk for $7.45 billion, strengthening the French major’s operations in the North Sea.

The current COO at Maersk Oil, Martin Rune Pedersen, will become vice president of Total’s operations in Norway, Denmark and the Netherlands, Maersk said.

Troels Albrechtsen, who is CTO of Maersk Oil, will be appointed vice president for a technical center that Total will establish in Copenhagen, the Danish firm added.

Helmerich & Payne CFO To Retire Next Year

Helmerich & Payne Inc. said Sept 26 that Juan Pablo Tardio, vice president and CFO, has informed the company of his intention to retire in June 2018. The company will soon begin a comprehensive search for CFO candidates.

Tardio will continue to serve in his current role until a successor is identified and has an opportunity to effectively transition into that position.

Beach Energy Snares Origin Gas Assets For $1.25 Billion

Australia’s Beach Energy has agreed to buy gas assets from Origin Energy Ltd. for $1.25 billion in a deal that will more than double the oil and gas producer’s output and step up its exposure to a tight energy market in eastern Australia.

The deal will triple Beach’s oil and gas reserves, transforming a company valued at A$1.5 billion (US$1.2 billion) that has long been focused on one basin in central Australia to give it a foothold across Australia and New Zealand, onshore and offshore.

At the same time, it has locked in gas sales to Origin from the Lattice Energy business it is acquiring at higher prices than it averaged in the year to June 2017, serving a market that is likely to see gas demand soar for power plants.

Origin, Australia’s top energy retailer, spun off the gas assets into a separate arm last year, aiming to sell or float the business to help it cut debt, which it had taken on to build the Australia Pacific LNG project.

Beach CEO Matt Kay said that besides expanding the company’s output and reserves, the deal offered certainty of cash flow from the gas sales agreements, which stretch out to 2033.

Frank’s International Names Michael Kearney As President, CEO

Frank’s International NV has named Michael C. Kearney as president and CEO, effective immediately, the company said in a news release Sept. 27.

In addition to his ongoing role as chairman, Kearney has served on Frank’s board of supervisory directors since 2013 and has more than 25 years of upstream energy executive and board experience, principally in the oil services sector.

Most recently, Kearney was Frank’s lead supervisory director from May 2014 to December 2015, when he was named chairman. In addition he served on the company’s audit committee and compensation committee.

Kearney was previously the CFO of DeepFlex Inc. before being appointed as the president and CEO of the company in January 2008. Kearney has also held various roles at Tesco Corp. and Hydril Co.

DNV GL Appoints New Oil, Gas CEO

DNV GL has appointed Liv Hovem as the CEO of its oil and gas business area, the company said in a news release. Effective Jan. 1, 2018, Hovem will report to Group President and CEO Remi Eriksen.

Hovem, succeeding Elisabeth Tørstad, will be based at the DNV GL Norway headquarters and will be a member of the DNV GL group’s executive committee.

Hovem has more than 25 years of experience in international management, technical advisory and engineering services, R&D in the oil and gas and maritime industries

Most recently, Hovem was the regional manager for continental Europe, the Middle East and India in DNV GL’s oil and gas business. Hovem has two masters of science degrees in naval architecture and offshore engineering from UC Berkeley and in civil engineering from the Norwegian University of Science and Technology.

Parker Drilling Appoints Michael Sumruld As CFO

Michael W. Sumruld has been named senior vice president and CFO of Parker Drilling Co., the company said in a release. Sumruld’s appointment took effect Oct. 1.

Most recently, Sumruld was the vice president and chief administrative officer from January through September at LyondellBasell Industries NV. In his role there, his responsibilities included corporate accounting, financial reporting and internal controls. Prior to that, Sumruld worked at Baker Hughes Inc.

During his 18-year tenure, he held a range of financial roles at Parker Drilling’s Eastern Hemisphere Ltd. Additionally, he held financial roles covering the U.S., Latin America and the Eastern Hemisphere as well as global financial roles covering several product lines.

Israeli Court Will Not Dismiss Suit Against Tamar Partners

Israel’s Supreme Court said it would not dismiss a class-action suit against the partners in the Tamar natural gas field regarding the price of gas in a major supply deal.

The case refers to a 15-year deal signed with state-owned utility Israel Electric Corp. (IEC) before the field came online in 2013. According to a court document, IEC committed to buy a minimum of 42 Bcm (1,483 Bcf) of gas per year at a base price of $5.042 per million British thermal units.

A 2014 class-action suit claimed the Tamar partners took advantage of having the country’s only gas field to secure a price more than double what was acceptable, the court said.

After the Supreme Court rejected their petition to dismiss the suit and sent it back to a district court, the Tamar partners said in a statement they are still certain the case will ultimately be thrown out.

Flowserve Appoints Lee Eckert As CFO

CHC Group CFO Lee Eckert will join Flowserve as senior vice president and CFO, effective Oct. 9, Flowserve Corp. said.

Eckert has served as senior vice president and CFO for CHC Group LLC., a global commercial helicopter service provider to the offshore oil and gas industry, since 2015.

He brings to Flowserve more than two decades of financial experience, having also served as CFO of the U.S. division of National Grid Plc, in various executive capacities at MeadWestvaco Corp. and in senior finance roles at Electronic Data Systems and General Electric.

Shell, KUFPEC Cancel Sale Of Two Thailand Subsidiaries

Royal Dutch Shell subsidiary BG Asia Pacific Holdings Pte Ltd. and KUFPEC Thailand Holdings Pte Ltd. have mutually agreed to cancel the sale and purchase agreement for the share sale of Shell Integrated Gas Thailand Pte. Ltd. (SIGT) and Thai Energy Co. Ltd. (TEC), Shell said in a news release.

The news was announced Oct. 4 by Shell, which didn’t state in the release why the deal was canceled.

Together, Shell said SIGT and TEC hold a 22.222% equity stake in the Bongkot Field and adjoining acreage offshore Thailand, consisting of blocks 15, 16 and 17 and block G12/48. PTT Exploration & Production and Total are partners in the Bongkot asset, respectively holding 44.445% and 33.333% equity.

Shell said the group’s divestment program “continues to make good progress,” having more than $25 billion in completed, announced or in progress divestments. The company is targeting $30 billion of divestments between 2016 and 2018.

Offshore Rig Firms See End To Worst Downturn In History

Global demand for offshore rig rentals is starting to recover from its worst downturn ever, led by oil firms’ growing demand for harsh-environment exploration and triggering multibillion dollar tie-ups among drillers hoping to profit, executives said.

While the 2014 through 2016 oil price crash caused firms to cut exploration budgets, ending a boom in rig demand and bankrupting many owners, energy companies are now seeking to replenish their hydrocarbon reserves.

The nascent demand for harsh-environment rigs, particularly for North Sea drilling, could lead to increased rates for these units as soon as 2018 and other categories may follow in 2019 or 2020, companies and analysts say.

Transocean Ltd. CEO Jeremy Thigpen told UBS analysts he would not be surprised to see next fixtures for such rigs to rise to $300,000 from current levels of around $200,000.

Oslo-based Pareto Securities also said it expected day rates for modern harsh-environment rigs to rise to $250,000 to $300,000 in contracts awarded in 2018, with other segments rising later.

Nordea bank said it saw the rig market in the North Sea tightening in 2018, particularly for high-end rigs, with Odfjell Drilling signing a nine-month contract in August with Aker BP at a day rate of $250,000.

Analysts mostly have “buy” or “strong buy” ratings for Borr Drilling Ltd., Odfjell Drilling Ltd., Transocean and Northern Drilling Ltd., according to Thomson Reuters data, as they have the most exposure to harsh-environment rigs, the newest fleets and the lowest debts in the sector.

—Staff & Reuters Reports