Analysts said it made sense for Chevron to sell its North West Shelf LNG stake now, after it failed to seal a deal to supply gas to the plant from its undeveloped Clio and Acme fields.
A panel of oil and gas capital experts discussed the steps private equity professionals need to take to recover from the severe downturn.
Here’s a snapshot of recent energy deals including an acquisition by Northern Oil and Gas of core Williston Basin acreage operated by WPX Energy plus the sale of ORRI by Antero Resources.
Saudi Aramco has completed its purchase of a 70% stake in petrochemicals company SABIC for $69.1 billion and extended the payment period by three years to 2028, providing a cushion against weak oil prices.
The ORRI transaction with Sixth Street Partners addresses over half of Antero Resources’ $650 million to $900 million asset sale goal for 2020 while allowing the Appalachia shale producer to pay down debt, CEO Paul Rady says.
Fieldwood Energy on June 11 was sued by an insurance provider for allegedly failing to post $19.2 million in collateral for performance bonds, according to a Texas state court filing.
Cutbacks by E&Ps have prompted auctions for oilfield equipment from Odessa, Texas, to Alberta, Canada. Even if oil prices remain in the high-$30s, that will not be enough to spur much in the way of additional drilling.
Shell has launched the sale of its stakes in two oil fields and two pipelines in Norway with expected proceeds between $50 million and $100 million, according to a sales document seen by Reuters.
The acquisition, “while modest in size,” highlights Northern Oil and Gas’s competitive advantage as an actively managed nonoperator, COO Adam Dirlam says.