Page 18 - NorthAmOil Week 50 2020

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refining budget will also include $255mn to
fund high-return, quick-payout projects to
enhance margins by improving clean product
yields and reducing feedstock costs, as well
as investments to competitively position
the company for a lower carbon future. The
refining budget includes pre-construction
engineering and design costs related to
the company’s plans to reconfigure its San
Francisco Refinery in Rodeo, California, to
produce renewable fuels. Upon expected
completion in early 2024, the facility would
shareholders, voting together as a single class. value. It monetises an asset the value of which, have over 50,000 barrels per day, or 800mn
The completion of the combination we believe, has not been adequately reflected gallons per year, of renewable fuel production
remains subject to approval of the Court of in our stock price and which had become capacity, making it one of the world’s largest
Queen’s Bench of Alberta and the receipt of all increasingly non-core with the Company’s facilities of its kind. The conversion is
necessary regulatory approvals. shift to a cash optimisation-focused strategy.” expected to reduce the facility’s greenhouse
CENOVUS ENERGY AND HUSKY ENERGY, Jefferies provided a financial fairness gas emissions by 50% and help California
December 15, 2020 opinion to the company. Winston & Strawn meet its low carbon objectives.
acted as legal advisor to the company. PHILLIPS 66, December 14, 2020
Headwater Exploration SANDRIDGE ENERGY, December 14, 2020
announces 2021 capital DOWNSTREAM SERVICES

budget Petroleum Service

Headwater Exploration announces that the Phillips 66 announces 2021 Corporation, a portfolio
company’s board of directors has approved capital programme
a 2021 capital budget of CAD85-90mn company of Aurora Capital
designed to provide December 2020 to fourth Phillips 66, a diversified energy manufacturing
quarter average 2021 production growth of and logistics company, announces its 2021 Partners, announces
approximately 125%. The approved budget is capital budget of $1.7 billion, which includes
expected to leave Headwater with a working $0.3bn at Phillips 66 Partners. acquisition of Fryoux
capital surplus of approximately CAD45mn at “Our 2021 capital budget is supported
the end of 2021. by our diversified portfolio, strong financial Tankerman Service
HEADWATER EXPLORATION, December 14, position and capital discipline,” said Greg
2020 Garland, chairman and CEO of Phillips 66. Petroleum Service Corporation, a North
“We continue to focus on reducing capital American leader in tankerman services,
SandRidge Energy expenditures as market conditions remain product handling and site logistics for the
challenged. We are prioritising completion of
petrochemical and refining industries, today
announces sale of North in-progress projects, as well as advancing our announced that it has signed an agreement
investments in renewable fuels. Phillips 66
to acquire certain assets from Fryoux
Park Basin assets for is committed to financial flexibility, enabled Tankerman Service, a premier shoreside
by our balance sheet and strong investment
tankerman company.
$47mn grade credit ratings. We continue to execute Based in Norco, Louisiana, Fryoux has
our strategy with a focus on disciplined capital been serving customers along the U.S. Gulf
SandRidge Energy today announced that it allocation and long-term value creation coast since 1967 when it was founded as the
has entered into a definitive agreement for the for our shareholders, including a secure, second shoreside tankerman service, behind
sale of its North Park Basin assets. competitive, growing dividend.” PSC. As part of the transaction, PSC will
The consideration is $47mn in cash subject In midstream, the company plans to absorb Fryoux’s tankerman operations along
to customary post-closing adjustments. The invest $610mn, including $300mn of Phillips the Gulf Coast. Jimmy Fryoux, President of
effective date is October 1, 2020, and the 66 Partners adjusted capital spending. the third-generation, family-owned company
transaction is expected to close during the The budget is directed toward completing built by his grandfather and father, will join
first quarter of 2021. near-term committed and optimization PSC’s marine operations team as an advisor.
NPB accounted for less than 10% of the projects, focusing on pipeline operations “Like PSC, Fryoux has a long-standing
company’s production during the quarter and progressing construction of Sweeny reputation for quality service, safety and
ended September 30, 2020 and less than 10% Frac 4 and the C2G Pipeline. In addition, the environmental protection, and their
of the company’s proved developed reserves as midstream budget includes sustaining capital experience and expertise will serve as
of December 31, 2019. to enhance asset integrity and reliability. excellent supplements to our existing
Carl Giesler, SandRidge’s president The refining capital budget includes capabilities,” said PSC CEO Joel Dickerson.
and CEO, commented: “We believe this $521mn of sustaining capital for reliability, “We welcome Jimmy and the rest of the
transaction significantly enhances shareholder safety and environmental projects. The Fryoux team to PSC and look forward to

P18 www. NEWSBASE .com Week 50 17•December•2020