April’s top news stories

7 May 2019 (Last Updated September 17th, 2020 12:45)

Occidental Petroleum proposes to acquire Anadarko Petroleum for $57bn, Chevron acquires all of the outstanding shares of Anadarko for $50bn. Offshore-technology.com wraps up the key headlines from April 2019.

April’s top news stories
An aerial photograph of Anadarko Petroleum’s headquarters in The Woodlands, Texas. Credit: Trey Perry.

Occidental proposes to acquire Anadarko for $57bn

Occidental Petroleum proposed to acquire oil and gas producer Anadarko Petroleum in a 50:50 cash and stock transaction valued at $57bn.

The offer came after Chevron agreed to buy all of the outstanding shares of Anadarko for $33bn.

Under Occidental’s offer, Anadarko shareholders would receive $38 in cash and 0.6094 shares of Occidental common stock for each Anadarko share. The offer includes the assumption of net debt and book value of non-controlling interest.


Chevron acquires Anadarko Petroleum for $50bn

American oil and gas multinational Chevron acquired all of the outstanding shares of hydrocarbon exploration company Anadarko for $50bn.

The stock and cash transaction for Anadarko’s shares is valued at $33bn, or $65 per share. Anadarko’s shareholders will receive $16.25 in cash and 0.3869 shares of Chevron for each Anadarko share under the terms of the agreement.

The acquisition of Anadarko is expected to enhance Chevron’s upstream portfolio as well as its positions in deepwater, shale and natural gas resource basins. Chevron is expected for benefit from in the Delaware Basin and the Gulf of Mexico, with the combination of the two companies extending Chevron’s offshore infrastructures.


BP and partners to invest $6bn in ACE project offshore Azerbaijan

BP, along with its project partners, is set to invest $6bn in the Azeri Central East (ACE) project offshore Azerbaijan.

The ACE project represents the next stage of the development of the Azeri-Chirag-Deepwater Gunashli (ACG) oilfield complex in the Caspian Sea.

The investment decision follows an agreement with the partners to extend the ACG production sharing agreement (PSA) to 2049.


ConocoPhillips to divest UK oil and gas business for $2.675bn

ConocoPhillips signed an agreement to divest its oil and gas business in the UK to Chrysaor Holdings for $2.675bn.

The transaction will add three material assets to Chrysaor’s portfolio. It includes two new operated hubs in the UK Central North Sea, Britannia and J‐Block and an interest in the Clair Field area in the West of Shetland.

As part of the agreement, ConocoPhillips will also transfer the responsibility of the ongoing decommissioning programme of its exhausted assets to Chrysaor.


New York bans offshore drilling in state waters

The US state of New York approved legislation banning offshore oil and gas drilling across the state waters.

Signed by Governor Andrew M. Cuomo, the new law prohibits oil and gas exploration and drilling in all offshore areas under state administration.

The legislation also bans leasing state-owned underwater coastal land for exploration and production of fossil fuels. It is estimated to dampen the federal administration’s move to open the country’s offshore waters to oil and gas drilling.


Aker Energy completes drilling campaign in Ghana

Aker Energy Ghana completed its appraisal drilling campaign at the Deepwater Tano Cape Three Points (DWT/CTP) block.

The campaign was aimed to gain better understanding of the region and identify additional resources to bolster the Pecan field development.

Initiated in November 2018, the campaign included three appraisal wells and a side-track well.


US halts offshore drilling expansion plan indefinitely

The Trump administration reportedly decided to put on hold its plan to expand offshore oil and gas drilling indefinitely following a legal setback last month.

In an interview, US Interior Secretary David Bernhardt told The Wall Street Journal (WSJ) that the five-year plan to open its Outer Continental Shelf for drilling will wait until all legal appeals process are cleared.

The decision was taken after a US court in Alaska revoked a federal order that allowed offshore oil and gas drilling in the Arctic Ocean and Atlantic.


ExxonMobil increases its acreage offshore Namibia

US oil and gas multinational ExxonMobil acquired approximately seven million net acres offshore Namibia through an agreement with the Namibian government and the National Petroleum Corporation of Namibia (NAMCOR).

The agreement is for the acquisition of the 1710 and 1810 blocks, as well as farm-in agreements with NAMCOR for the 1711 and 1811A blocks.

These blocks are located in the Namibe basin 215km offshore Namibia in water depths of up to 4,000m. The company plans to begin exploration activities, including acquisition and analysis of seismic data this year.


Partners Group to acquire Norwegian firm CapeOmega for €1.2bn

Swiss private equity firm Partners Group is set to acquire Norwegian midstream infrastructure company CapeOmega for nearly €1.2bn ($1.34bn).

The company will acquire CapeOmega from private equity investor HitecVision, on behalf of its clients.

Established in 2014, CapeOmega focuses on supplying key infrastructure to enable natural gas transportation from the Norwegian Continental Shelf (NCS). It also holds significant stakes in multiple Norwegian midstream infrastructures including Gassled, an offshore gas transmission system.


Shell sells stake in Gulf of Mexico field to Delek Group for $965m

Royal Dutch Shell signed an agreement, through its subsidiary Shell Offshore, to sell its 22.45% non-operated interest in the Caesar-Tonga oilfield in the Gulf of Mexico to a subsidiary of Delek Group for $965m.

US exploration company Anadarko Petroleum is the operator of the field, with an operating interest of 33.75%. Delek Group will join Equinor (23.5%) and Chevron (20.25%) as partners in the oilfield.

The Caesar-Tonga oilfield is located 300km south of Louisiana, US, at a depth of 1,500m and contains eight wells connected by an undersea pipeline network. It has a production horizon spanning ten years and production from the field started in 2012.