Page 8 - GLNG Week 42

GLNG NRG GLNG

Further north, Mexican officials say that state- North America: M&A activity accelerates
owned Pemex has wrapped up work on the first After a lacklustre start to the year, M&As are
phase of the Dos Bocas oil refinery, which is now picking up in North America. This started
under construction in Tabasco State. The project with Chevron’s move to acquire Noble Energy,
was 24% complete as of October 18, according to announced this summer and recently com-
Oil & Gas Journal. pleted, and several large deals have followed
suit.
If you’d like to read more about the key events shaping Now all eyes have turned to the shale patch,
the Latin American oil and gas sector then please click where ConocoPhillips has confirmed its acqui-
here for NewsBase’s LatAmOil Monitor . sition of Concho Resources. Meanwhile, sepa-
rate news of a potential tie-up between Pioneer
MEOG: Major opportunity knocks in Saudi Natural Resources and Parsley Energy were
Companies have resumed bidding for work confirmed this week, within days of first being
under Saudi Aramco’s giant unconventional gas reported.
development plan after a hiatus caused by the News of the ConocoPhillips-Concho deal
coronavirus (COVID-19) pandemic. The state first emerged last week, and were confirmed in
oil firm is planning to spend $110bn to develop a press release on October 19. Like a number
the onshore Jafurah gas field located in the pro- of recent mergers, it is an all-stock transaction,
lific Eastern Province, and four engineering, illustrating producers’ unwillingness to spend
procurement and construction (EPC) firms are money under current market conditions. The Unsurprisingly,
understood to have submitted bids for a major transaction is valued at $9.7bn, and represents
package. a 15% premium to the companies’ closing share the Permian
In Saudi Arabia, Aramco’s long-term agree- prices on October 13, with Concho investors
ments (LTAs) reign supreme, with signatories standing to receive 1.46 shares of ConocoPhillips seems to be
receiving near-exclusive access to tenders for stock for each of their own.
hydrocarbon development work. While work to For ConocoPhillips, which has both conven- one of the main
expand production from the supergiant Berri, tional and unconventional operations, this deal regions where
Marjan and Zuluf oilfields is understood to have will bolster its shale holdings, transforming its
been put on hold, Aramco has ring-fenced Jafu- position in the prolific Permian Basin. consolidation is
rah as a project of strategic importance to the Unsurprisingly, the Permian seems to be one
Kingdom, which is keen to ramp up gas output. of the main regions where consolidation is cur- currently playing
When the field reaches its production plateau in rently playing out. The acquisition of Noble also
2036, it is anticipated to yield 2.2bn cubic feet per bolstered Chevron’s position in the Permian’s out.
day of sales gas and 550,000 barrels per day (bpd) Delaware sub-basin, while the merger between
of NGLs and condensates. Devon Energy and WPX Energy, announced in
Across the border in the UAE, ADNOC late September, is also underpinned by a position
has remained in the headlines by continuing in the core of the Delaware.
its efforts to exert greater control over the full And indeed, the newly announced Pio-
hydrocarbon value chain. Over the last month, neer-Parsley deal is entirely Permian-focused.
the company has set up two new trading arms, The $4.5bn all-stock transaction will create
bought crude carriers and divested further a major Permian player with about $10bn in
from its gas pipeline subsidiary. The moves are combined revenues and production of more
not only keeping ADNOC’s name in the head- than 550,000 barrels of oil equivalent per day
lines, but the firm is leading from the front as (boepd).
other Gulf NOCs seek to monetise assets to free Analysts believe that at least a handful of
up cash amid uncertainty about oil prices and other major shale players are attractive acquisi-
demand. tion targets.

If you’d like to read more about the key events If you’d like to read more about the key events shaping the
shaping the Middle East’s oil and gas sector then North American oil and gas sector then please click here
please click here for NewsBase’s MEOG Monitor . for NewsBase’s NorthAmOil Monitor. ™

P8 www. NEWSBASE .com Week 42 23•October•2020