Page 12 - NorthAmOil Week 30 2022

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Talos in talks to buy EnVen not respond to a comment request. refurbishment and completion of two
Adage declined comment, while EIG did
floating production units (FPU). Following
for $1bn REUTERS completion, these vessels will work in the Gulf
of Mexico and Senegal.
Talos Energy Inc (TALO.N) is in talks to Orion Diversified announces As announced by Keppel on Monday,
acquire Bain Capital-controlled EnVen Energy the first contract is by Keppel AmFELS
for about $1 billion and also take on the debt Permian acquisition with Salamanca FPS Infra, LLC for the
of the U.S. Gulf of Mexico operator, according refurbishment of a floating production unit to
to people familiar with the matter. Orion Diversified Holding Co Inc. announced be operated by LLOG Exploration Offshore, a
The deal would be among the most that it has closed on an acquisition of a royalty private exploration and production company
significant in recent years in the Gulf, creating interest in Garza and Lynn County Texas of in the U.S.
a bigger company that would be better placed the Permian Basin. Keppel AmFELS’ scope of work on the
to take advantage of higher oil prices. The property consists of a royalty production facility includes demolition, hull
Talos Chief Executive Tim Duncan said interest in 6,360 acres producing 35 bopd & modifications, and upgrades to key systems.
in May the offshore oil and gas operator was 10mcfgpd. Orion now has mineral ownership Expected to be completed in 2Q 2024, the
looking for acquisition targets in the U.S. Gulf in 15,640 Acres in the Permian Basin Salamanca FPU will have a capacity of 60,000
of Mexico to boost its production. read more Wolfcamp Shale & Sprayberry fields. barrels of oil per day and 40 million cubic
Talks between the two companies have Orion owns mineral interest in more than feet of natural gas per day. It will be deployed
reached an advanced stage and a deal would 27,721 acres in the Bakken Shale, Permian in the deep waters of the Gulf of Mexico to
see Talos buy EnVen using either mostly or all Basin, Woodford Shale, Haynesville Shale, service the Leon field and the Castile field.
stock, the sources said. Niobrara Shale, Powder River Basin, & Eagle As previously reported by Offshore Energy,
The deal value is expected to be higher Ford Shale. LLOG has already secured a deep-draft
after including EnVen’s debt, which stood at Revenues are on target to reach $100,000 in semi-submersible production platform for the
$288 million at the end of 2021, according to a the 3rd Qtr. of 2022. Multiple income streams development of these deepwater fields.
March presentation on EnVen’s website. are coming in from 3 horizontal Bakken Keppel noted that, as the Salamanca
The sources, who requested anonymity as North Dakota wells at a 24% Non-Operated FPU is being upgraded and modified from
the discussions are confidential, cautioned Working Interest. Orion is also starting to a previously decommissioned production
that the deal talks could still end without an receive income from our 2+% royalties in facility, the time, cost and materials to be
agreement. 4 wells in Oklahoma, and our operated 3 used are greatly reduced compared with the
Neither Talos, which has a market value of well property in the Eagle Ford Shale. Orion construction of a new facility.
$1.6 billion and reports earnings on Aug. 4, or recently purchased a 5% non-operated The shipbuilder pointed out that the
EnVen responded to requests for comment. working interest in 10 wells that are in the project has a positive Environmental, Social
Bain Capital declined to comment. pipeline to generate additional revenues. and Governance (ESG) impact as it would
Houston-headquartered Talos has grown ORION DIVERSIFIED reduce approximately 70 per cent in carbon
to become one of the largest operators in the emissions compared to a newbuild, and also
Gulf since being formed around a decade ago. circumvents the scrapping of an old unit.
It has used periodic dealmaking to boost its SERVICES OFFSHORE ENERGY
scale, making around a dozen acquisitions,
including the buyout of Stone Energy in 2018. Keppel hired for GoM floater Bilfinger wins Shell GoM
EnVen is backed by Bain Capital, which
has three directors on the company’s seven- work maintenance deal
person board, according to EnVen’s website.
Fellow buyout firms Adage Capital and EIG Keppel Offshore & Marine’s subsidiaries, Services firm Bilfinger on Monday announced
also hold stakes in EnVen, according to an Keppel AmFELS and Keppel Shipyard, it has been awarded a multimillion dollar
April 2021 report from rating agency Moody’s have been awarded contracts worth around annual contract for the routine mechanical
Investors Service. S$75 million or about $54 million for the maintenance scope for Shell‘s oil and gas

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