August's top stories: Total's $7.45bn acquisition, Microsoft and Halliburton's alliance

Total agreed to acquire Maersk Oil for $7.45bn, Microsoft and Halliburton entered a strategic alliance to facilitate digital transformation in the oil and gas industry, ICL signed MoU with Energean for $2bn natural gas supply deal. Offshore-technology.com wraps-up the key headlines from August 2017.


Total to acquire Maersk Oil for $7.45bn

French oil and gas company Total agreed to acquire 100% of the equity of Maersk Oil and Gas, a wholly owned subsidiary of AP Møller – Mærsk, for $7.45bn.

Under the acquisition, Total will pay AP Møller – Maersk a consideration of $4.95bn by issuing 97.5 million shares and assume $2.5bn of Maersk Oil’s debt.

Subject to regulatory approval from relevant authorities, including the Danish Minister of Energy, Utilities and Climate and competition authorities, as well as legally required consultation and notification processes for employee representatives, the transaction is expected to close in the first quarter of next year.


Transocean to acquire Songa Offshore for $3.4bn

Offshore contract drilling services provider Transocean agreed to acquire 100% of the issued and outstanding shares in Songa Offshore for a sum of approximately Nkr26.4bn ($3.4bn).

The acquisition is expected to strengthen Transocean’s fleet by incorporating Songa Offshore’s four ‘Cat-D’ harsh environment, semisubmersible drilling rigs, which are currently on long-term contracts with Statoil in Norway.

Songa Offshore’s portfolio also includes three additional semisubmersible drilling rigs.


Microsoft and Halliburton form alliance to digitise oil and gas industry

Microsoft and Halliburton entered a strategic alliance to facilitate digital transformation in the oil and gas industry.

The partnership will leverage on Microsoft’s expertise in cloud and digital transformation along with Halliburton’s knowledge in exploration and production (E&P) science, software and services.

Engineers from the two companies will work to optimise Microsoft technologies in machine learning, augmented reality (AR), user interactions, Industrial Internet of Things (IoT), and improve cloud computing service Azure.


ICL signs MoU with Energean for $2bn natural gas supply deal

Specialist chemicals company ICL signed a non-binding memorandum of understanding (MoU) with Energean Israel for a long-term supply of natural gas for a total consideration of nearly $2bn.

Under the MoU, ICL will enter negotiations with Energean for a definitive agreement regarding the supply of 13 billion cubic metres of natural gas.

The gas will be supplied to ICL following the commencement of production from Energean’s Karish and Tanin fields located offshore Israel.


Virginia Governor urges US to exclude state from new offshore drilling plan

In his latest letter, Virginia Governor Terry McAuliffe urged the US Government to exclude the state from a new offshore oil and gas drilling plan.

In the message submitted to the US Bureau of Ocean Energy Management (BOEM), McAuliffe requested the federal government to remove the state from the new 2019-24 National Outer Continental Shelf Oil and Gas Leasing Programme.

The plan includes the Atlantic coast and was approved by the US President Donald Trump through an executive order in April.


DNV GL and Lundin implement new techniques to reduce downtime at Edvard Grieg platform

DNV GL partnered with Lundin Norway to develop the first step of a solution to predict unplanned shutdowns at the Edvard Grieg production platform, located at Utsira High in the North Sea.

The Edvard Grieg platform has been operational for nearly two years and is operated by Lundin Norway.

The company currently holds 65% interest in the platform, while OMV Norge and Wintershall Norge own 20% and 15% stake respectively.


Shell to deploy Maersk Drilling rig for work offshore Trinidad

Shell contracted Maersk Drilling for the deepwater semi-submersible rig Mærsk Developer, which is set to be deployed in the East Coast Marine Area (ECMA) off the shore of Trinidad.

The project will include the drilling and completion of three wells, as well as the suspension of one well within the ECMA area.

Maersk Drilling will also provide additional in-field integrated services as part of the deal.


Dresser-Rand to supply power generation equipment for Chinese offshore projects

Siemens Power and Gas subsidiary Dresser-Rand signed a deal to supply power generation equipment for two Chinese offshore projects, as part of two separate orders.

The contracts were signed with China National Offshore Oil (CNOOC) for the Penglai 19-3 oil field project and Harbin Guanghan Gas Turbine (HGGT) for the Dongfang 13-2 gasfield development respectively.

Dresser-Rand will supply two SGT-A30 RB power-generation trains for the Penglai oil field in Bohai Bay, which was initially discovered in 1999.


Odfjell Drilling wins rig contract from Aker BP

Odfjell Drilling secured a $68m contract from Aker BP to lease the semi-submersible drilling rig ‘Deepsea Stavanger’ for nine months.

Set to commence from February next year, the contract will be completed in October.

The contract involves the exploration and development drilling at various sites situated within the Norwegian Sea and the Barents Sea using the semi-submersible rig Deepsea Stavanger.


Petronas to exit two offshore blocks in Vietnam

Petronas' subsidiary PC Vietnam (PCVL) agreed to transfer Blocks 01 and 02 in the Cuu Long basin in offshore Vietnam to the host authority once the production sharing contract (PSC) expires.

The PSC is scheduled to expire after 26 years on 9 September this year.

Once the PSC ends, PCVL will terminate all its operations as stated in the contract terms.