Page 8 - NorthAmOil Week 29 2022

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

Momentum to acquire Midcoast

assets in Texan midstream deal

TEXAS REPORTS emerged this week suggesting that acquisition has financial support from EnCap
privately owned Texan firm Momentum Mid- Flatrock Midstream.
stream has agreed to acquire pipeline assets in For Momentum, which has been highly active
East Texas from Midcoast Energy for $1.3bn, in the development of pipeline companies, this
including debt. would be its first deal since it sold projects to Wil-
According to sources that have intimate liams Companies and DT Midstream in 2019.
knowledge of proceedings, spoken to by Reuters, Meanwhile, Midcoast, which was acquired
the pipeline assets form part of the Haynesville by ArcLight Capital Partners for around $1.1bn
shale. Meanwhile, Reuters reported in April that in August 2018, has assets including 5,800 km of
Midcoast was looking to offload its East Texas gas and NGL pipelines, six processing plants that
pipelines, targeting a sum of $2bn for the assets. have a capacity of 700mn cubic metres, treating
Momentum has been expanding its portfolio plants and liquid logistics facilities. The company
since 2004, over acquiring more than 3,200 km offers various midstream services, covering gath-
of pipelines, 12 processing facilities, three natu- ering, compressing, dehydration and marketing.
ral gas liquids (NGL) fractionation plants, more It sold gas gathering and processing assets in
than 1mn barrels of storage and 260,000 horse- the Anadarko Basin and a 35% operated stake in
power of compression. the Texas Express Gathering pipeline to Produc-
Reuters’ sources said that the proposed ers Midstream II in December last year.™

INVESTMENT

ConocoPhillips, Shell consider Gulf sales

GULF OF MEXICO REPORTS emerged this week suggesting that
ConocoPhillips and Shell are considering the
sale of assets in the US Gulf of Mexico. Speaking
on condition of anonymity, sources told Reuters
that Shell was looking to sell assets with a view
to raising around $1.5bn, allowing it to focus on
newer and larger assets, including in the Gulf,
while ConocoPhillips’ move would mark its
departure from deepwater exploration and pro-
duction amid a shift towards the Permian Basin.
Shell is reportedly looking to offload the
Auger hub and its 37.5% stake in the Hess-op-
erated Conger field, which have a combined
production capacity of around 50,000 barrels
per day (bpd). It has hired an investment bank The Auger platform is
to carry out the sale. Princess well, a development operated by Shell one of the assets Shell
The UK-based supermajor owns eight pro- that furnishes a net production to ConocoPhil- is reportedly seeking to
ducing platforms and hubs in the Gulf, produc- lips of around 13,700 barrels of oil equivalent per offload.
ing around 475,000 bpd, and recently acquired day (boepd).
51% of Equinor’s 100% stake in the deepwater The company is targeting “high hundreds of
Sparta project, with the companies working millions of dollars” for the sale. This comes as
towards a final investment decision (FID). it looks to divest $4-5bn worth of assets by the
While Shell consolidates its efforts on newer end of next year to support its expansion in the
assets, including the development of Whale Permian.
which will come into operation in 2024, Cono- Over the past two years the company has
coPhillips appears to be set to cut ties with the spent around $23bn to expand its position in the
Gulf altogether. basin, including acquiring Shell’s assets.
The sources said that the company has The sources both cautioned that there was no
hired an adviser to carry out the sales process guarantee that either deal would go ahead, but
for its 15.9% stake in the Ursa platform and the noted optimism amid oil price buoyancy.™

P8 www. NEWSBASE .com Week 29 21•July•2022