Deals this week: Red Emperor Resources, Tamar Petroleum, Petroleo Brasileiro
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Deals this week: Red Emperor Resources, Tamar Petroleum, Petroleo Brasileiro

02 Feb 2018

Australian oil and gas Exploration Company Red Emperor Resources plans to divest its 15% stake in Service Contract 55 (SC55), a deepwater block off the coast of the Philippines.

Australian oil and gas Exploration Company Red Emperor Resources plans to divest its 15% stake in Service Contract 55 (SC55), a deepwater block off the coast of the Philippines. SC55 covers an area of 9,880km².

Israeli oil and gas company Tamar Petroleum Ltd has announced the purchase of additional 7.5% interest in I/12 Tamar lease from Noble Energy for approximately $800m under a definitive agreement.

The transaction is expected to be complete by the end of Q1 2018. The I/12 Tamar lease is located offshore Israel in the Mediterranean Sea.

The purchase consideration for the transaction will include a cash component of approximately $560m and issuance of 38.5 million shares.

Partners in the Tamar lease following the deal will be Noble Energy (25%, operator), Isramco Negev-2 (28.75%), Delek Drilling (22%), Dor Gas (4%), Tamar Petroleum (16.75%), and Harel Insurance (3.5%).

The purchase is expected to strengthen Tamar Petroleum’s oil and gas assets base in Israel.

Noble Energy plans to use the sale proceeds to support the development of Leviathan field.

Brazilian integrated oil and gas company Petroleo Brasileiro SA (Petrobras) intends to raise $2bn through the public offering 5.75% senior unsecured notes due 1 February 2029.

Petroleo Brasileiro expects to receive approximately $1.96bn in net proceeds through the transaction.

The notes are priced at 98.4% of the principal amount to yield 5.95% at maturity.

Interest on the notes is payable semi-annually from 1 August 2018.

“Petroleo Brasileiro expects to receive approximately $1.96bn in net proceeds through the transaction.”

Proceeds will be used by Petroleo Brasileiro to redeem its 3% global notes due January 2019, 7.875% global notes due March 2019 and 3.25% global notes due April 2019.

The company also plans to use part of proceeds to repay its debts.

Energean Oil & Gas subsidiary Energean Israel has contracted Stena Drilling to deploy its Stena Forth drillship to establish three development wells at the Karish field, offshore Israel.

Stena Drilling will deploy the ship to drill three development wells in Q1 2019 as part of the contract.

However, the contracted work is dependent on Energean’s final investment decision (FID) on the Karish and Tanin gasfields.

Energean is an oil and gas exploration and production company based in Greece, while Stena Drilling is a Swedish contractor.

Blackstone Energy Partners and Blue Water Energy (BWE) have entered an agreement to invest $1bn in Mime Petroleum.

Blackstone Energy Partners is a private equity firm based in the US, while Blue Water Energy is a private equity firm based in the UK, and Mime Petroleum is a newly formed development and production company based in Norway.

Mitsui intends to acquire AWE Ltd for a purchase consideration of A$602m ($487.98m), which represents a price of A$0.95 ($0.77) a share. The offer is on an unsolicited, non-binding and conditional basis.

Awe is an Australian oil and gas company, while Mitsui & Co Ltd is a general trading company based in Japan.

The acquisition is expected to strengthen Mitsui’s business operations.