Page 16 - MEOG Week 29

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On a brighter note, Brazil has succeeded in on July 17. However, the company’s share price
boosting crude oil exports by 36.8% y/y in the had fallen more than 60% between the start of
first half of 2020. the year and July 17, and thus the deal may still be
According to government data, the country seen as a bargain. This is also the super-major’s
exported 38.98mn tonnes – equivalent to about first significant acquisition since it walked away
1.56mn bpd – of oil worth $10.3bn between Jan- from Anadarko Petroleum last year, having been
uary and June. China remained the primary des- outbid by Occidental Petroleum.
tination for Brazilian oil, absorbing about 70% of Like Anadarko, Noble comes with acreage
all exports. in the Permian Basin. However, it is the East-
In other news, Emilio Lozoya, the former ern Mediterranean assets that are thought to be
head of Mexico’s NOC Pemex, has been extra- Noble’s main attraction.
dited from Spain to face corruption charges. There are hopes that a new wave of merg-
Lozoya stands accused of receiving $10mn ers and acquisitions (M&As) will follow, with
worth of bribes from a Brazilian construction deep-pocketed majors potentially leading the
firm that has acknowledged making payments to charge to snap up indebted companies at bar-
politicians in several Latin American countries. gain prices.
Indeed, the same day as the Chevron deal,
If you’d like to read more about the key events shaping commodity trader Vitol announced that it was
the Latin American oil and gas sector then please click forming a new company, Vencer Energy, which
here for NewsBase’s LatAmOil Monitor. would seek to buy mature, producing oil and gas
assets in the uS.
north america: m&a boost For some struggling companies, being taken
Chevron announced this week that it had struck over may be an attractive option while others
a deal to buy Noble Energy in a deal worth $5bn, are pushed into bankruptcy protection. Indeed,
or $13bn including debt. This is the first major two uS producers – Bruin E&P Partners and
energy industry transaction since the oil price California Resources – have announced over
downturn began in March. the past week that they are filing for Chapter 11
The deal is also notable because it will make bankruptcy protection. They join a long list of
Chevron the first super-major to enter Israel. uS oil and gas company bankruptcies from the
Noble’s Israeli assets will help weigh Chev- past few years that is anticipated to grow even
ron’s portfolio more towards gas – and are also larger in the coming months.
expected to help act as a springboard in the East-
ern Mediterranean region. If you’d like to read more about the key events shaping
The deal’s price-tag values each Noble share the North American oil and gas sector then please click
at $10.38 – a 7.5% premium to its closing price here for NewsBase’s NorthAmOil Monitor.

P16 www. NEWSBASE .com Week 29 22•July•2020