Page 7 - NorthAmOil Week 07 2022

NorthAmOil INVESTMENT NorthAmOil

Petrobras kicks off Gulf stake sale

GULF OF MEXICO BRAZIL’S state-owned Petrobras said on Feb- its portfolio management strategy and efforts
ruary 16 that it had launched the non-binding to improve capital allocation and maximise the
phase of a process to sell its 20% stake in MP Gulf value of its assets.
of Mexico, a joint venture with the US’ Murphy Murphy, for its part, will prioritise its Gulf
Oil, which owns the remaining 80%. operations this year. The company has raised
The Brazilian company announced that it its capital expenditure budget for 2022 to $840-
would sell the stake in October 2021, and it will 890mn, up from accrued capex of $671mn in
now receive non-binding offers from the com- 2021, though it noted that its guidance excludes
panies that have been cleared to bid for the asset. non-controlling interests in the Gulf. It is plan-
Texas-based MP Gulf of Mexico was formed ning to allocate 38% of its capex budget, or
in 2018 and owns interests in 14 offshore fields $330mn, to the Gulf, and noted that it had desig-
in the US’ portion of the Gulf. The properties nated capital to finalising key development pro-
comprise both operating and non-operating jects in the region.
interests, and Petrobras’ share of production The company stated in its earnings release
was 10,400 barrels of oil equivalent per day that its Gulf spending and acitivites for this
(boepd) in the first half of 2021, according to the year included bringing the Khaleesi/Mormont
statement. and Samurai field developments online, with
The seven fields operated by the joint venture first oil scheduled for the second quarter, as
are Chinook/Cascade, Dalmatian, Front Run- well as advancing the St. Malo waterflood pro-
ner/Clipper, Thunder Hawk and Cottonwood. ject prior to its completion in 2023. Murphy’s
MP Gulf of Mexico also holds interests as a part- other Gulf plans include drilling an operated
ner in Lucius, Kodiak, Habanero, Tahoe, North- development well at Dalmatian, with produc-
western, SMI 280 and St. Malo. tion due to come online in 2023, and executing
Petrobras has said that the sale is in line with subsea tiebacks at Lucius.™

Crescent to buy Uinta

Basin assets for $815mn

UTAH US independent Crescent Energy announced
this week that it had struck a deal to buy assets
in the Uinta Basin from Verdun Oil Company
II, which were previously owned by EP Energy,
for $815mn.
The all-cash transaction is due to close in the
first half of 2022 and will be funded through the
company’s revolving credit facility and cash on
hand, Crescent said in a February 16 statement.
The acquisition consists of more than 145,000
net acres (587 square km), primarily located in in threaten to derail it. Reuters reported on Febru-
Utah’s Duchesne and Uinta counties. The assets ary 15 that EP Energy was seeking to sell its assets
are more than 85% held by production (HBP) in Utah after the US Federal Trade Commission
and are operated with a working interest of (FTC) informed the company and EnCap that it
around 83% on average. would seek to block the deal if they went ahead
Crescent, which was formed last year via a with it.
merger between buyout firm KKR’s Independ- According to sources cited by Reuters, the
ence Energy and Contango Oil & Gas, is plan- regulator had raised concerns that EnCap would
ning to operate two rigs on the properties for the become the dominant player in the Uinta Basin,
remainder of 2022 after the deal closes. as it also owns Utah operator XCL Resources.
Verdun’s owner, private equity firm EnCap The FTC has rarely opposed oil and gas merg-
Investments, agreed to take over EP Energy and ers, so the move is an unusual one and could
its assets in the Uinta and Eagle Ford regions mark a potential change in stance as the admin-
in August 2021 in a $1.5bn deal. However, the istration of US President Joe Biden comes under
transaction ran into antitrust concerns that still growing pressure over rising gasoline prices.™

Week 07 17•February•2022 www. NEWSBASE .com P7