Page 21 - AsianOil Week 40

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Following the US’ brokering of a peace in the Eastern Mediterranean, offshore Israel
deal between the UAE and Israel, the three and Cyprus, as well as off Equatorial Guinea
parties this week agreed to co-operate on in West Africa.
energy-related matters. The deal was as Another notable deal that closed over the past
wide-reaching as it was vague, but will be week involved the sale of Barnett shale gas assets
played as a major foreign policy win by the belonging to Devon Energy to Banpu Kalnin
White House in the run-up to the November Ventures (BKV). Devon announced on October
presidential election. 1 that the transaction had been completed. The
Washington was not done in the region, US company received a cash payment of $320mn
though, and will play a mediatory role in the from BKV upon closing of the deal, after adjust-
coming to the table of Israel and Lebanon as they ing for a $170mn deposit that was paid in April
seek to resolve a lengthy dispute about their mar- and purchase price adjustments.
itime border. An agreement could lead to explo- Under the sale agreement, Devon stands to
ration in Lebanon’s Block 9 by a consortium led receive further contingent cash payments of up to
by Total. $260mn, depending on future commodity prices.
The company said upside participation would
If you’d like to read more about the key events shaping begin at either a Henry Hub gas price of $2.75 per
the Middle East’s oil and gas sector then please click million British thermal units ($76.07 per 1,000
here for NewsBase’s MEOG Monitor. cubic metres) or a West Texas Intermediate (WTI)
oil price of $50 per barrel, starting in 2021.
Deals close in US The announcement that the Barnett shale
Some major oil and gas deals have been com- deal had closed came within days of Devon’s
pleted in the US in recent days. Most notably, announcement that it was merging with another
this week Chevron announced that it had closed shale company, WPX Energy. The latter has core
its $13bn acquisition of Noble Energy after more positions in the Permian and Williston basins
than 90% of the latter’s shareholders approved and this, combined with the Barnett sale, illus-
the transaction. trates Devon’s shift towards more oil-rich assets.
The acquisition gives Chevron a num- The merger is being touted as providing a
ber of domestic and international assets roadmap for future consolidation in the shale
that the super-major has described as being industry, involving stock rather than cash, and
complementary to its existing operations. little to no premium.
Domestically, this includes shale acreage in
the Permian Basin, Denver-Julesburg (DJ) If you’d like to read more about the key events shaping
Basin and the Eagle Ford shale. Internation- the North American oil and gas sector then please click
ally, Noble’s most attractive assets are located here for NewsBase’s NorthAmOil Monitor ™

Week 40 08•October•2020 www. NEWSBASE .com P21