Exclusives

Offshore Drillers Ensco, Rowan To Combine In $2.4 Billion Merger

The merger of offshore drillers Ensco and Rowan will result in the world’s largest jackup contractor with a combined enterprise value of $12 billion.

As the oil price continues to climb from recent lows, there is a higher demand for funding. However, some smaller players face a challenging funding landscape, according to financial experts speaking at ONS2018.

The development, which includes two new bridge-linked platforms, has been designed to produce until 2050 with a peak production capacity of 120,000 barrels per day.

Paradigm, Emerson, E&P software, digital oil field, Pat Babka, oil and gas workflow, Roxar Software Solutions,  Emerson Automation Solutions

With the acquisition of Paradigm, which was completed in late 2017, Emerson believes it can meet the market’s growing demand for an independent, global provider of E&P software solutions.

Automation, robotics and drone technologies are helping to keep aging North Sea facilities profitable for longer.

Deepwater International

Norway’s Polarcus has been hired to conduct a 3-D marine seismic survey offshore Egypt.

Various subsea equipment will be delivered throughout 2015 and 2016.

GE Oil & Gas has invested more than $20.5 million across its subsea manufacturing facilities in Montrose, Scotland, in a move to enhance its business’s test and assembly and manufacturing capabilities.

Ceona has successfully installed a 570-mt multiple pipelay vertical lay system (VLS) and twin 400-mt cranes onto its next-generation flagship asset, the Ceona Amazon.

Kosmos Energy is taking a fresh look at a handful of new and existing exploration prospects in frontier waters offshore Ireland, according to partner Europa Oil & Gas.

Exploration

The transaction, which has an effective date of Jan. 1, 2017, includes an initial consideration of $958 million, interest of $54 million and additional payments of up to $285 million between 2018-2025, subject to gas price and production, according to the release.

British petrochemicals company Ineos is in exclusive talks with ConocoPhillips to buy North Sea oil and gas fields worth $3 billion, the Sunday Times newspaper reported.

CEO Mitch Flegg said the closing of pending acquisitions with BHP, BP and Total will represent a “major transformation” for Serica in the U.K. North Sea.

British shale gas company Cuadrilla has paused fracking at its Preston New Road site in northwest England for the second time in two weeks, after a tremor with a magnitude of 1.1 was detected on Oct. 29, the company said.

Wellesley Petroleum AS, an exploration company focused on the Norwegian Continental Shelf (NCS) on Oct. 29 announced the successful appraisal of the Grosbeak Discovery in the Northern North Sea by wells 35/11-21S and 35/11-21A. The wells were drilled in production license Pl248I where Wellesley holds a 60% operated interest.

Production

BP has started production at the Clair Ridge oil field in the West of Shetlands region of the North Sea, targeting a peak output of 120,000 barrels per day (bbl/d), it said on Nov. 23.

Iran will continue to export oil despite U.S. sanctions, which Iranian President Hassan Rouhani said on Nov 19 are part of a psychological war doomed to failure. 

Royal Dutch Shell’s (NYSE: RDS.A) profits soared to a four-year high in the third-quarter, boosted by rising oil and gas prices as the company accelerated its giant $25 billion share buyback program.

The major, which reported third-quarter net profit that beat expectations, said it expected oil and gas production to grow about 3% this year, against previous guidance of 4%.

Total’s production rose 8.6% to 2.8 million barrels of oil equivalent per day (MMboe/d), a new record output in a quarter, supported by the start-up of production at the Kaombo project in Angola and the ramp-up of projects such as Yamal LNG in Russia.

Subsea Engineering

Greece’s Energean Oil & Gas listed on the London Stock Exchange on March 16, raising $460 million to develop two Israeli offshore gas fields.

subsea oil and gas, subsea technology, dual pipe separator, Seabed Separation

Norwegian subsea technology firms are pushing ahead with technologies to enable a new wave of seafloor field development.

Subsea 7, subsea oil and gas, Jean Cahuzac

Subsea 7 CEO Jean Cahuzac expects the subsea market will see more awards coming its way in first-half 2018 for subsea umbilicals, risers and flowlines as well as conventional projects.

Britain plans to introduce tax changes to oil and gas companies operating in the North Sea, finance minister Philip Hammond said, in a bid to spur investment in the aging basin.

Upstream activity offshore Norway and the U.K. has seen a steady increase in the last couple of weeks, coinciding with a general rise in global crude prices.

Technology

Knut Eriksen has been named as Kreuz Subsea’s first independent non-executive director.

Equinor said it acquired more than 11 million shares in Oslo, Norway-based Scatec Solar.

Denmark’s Orsted will invest $30 billion in green energy up to 2025, it said on Nov. 28, as it seeks to become one of a handful of future “renewable majors” leading a global transition from fossil fuels to green energy.

Norway’s DNO has launched a bid to buy all of Faroe Petroleum in a deal worth around £607.9 million (US$779.81 million), sending shares in the London-listed company up by a quarter, Reuters reported on Nov. 26.

Oil and gas assets in the Permian Basin, the center of the U.S. shale industry, and on the Norwegian Continental Shelf are becoming too expensive, an executive of Norway's Equinor said.