Page 10 - NorthAmOil Week 08 2021

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Waterous increases offer for Osum stake

CANADA CALGARY-BASED private equity firm Water- Waterous said in its statement that its latest bid
ous Energy Fund announced last week that it was had the support of all five executive officers of
upping its offer for a stake in Osum Oil Sands. Osum, including chairman William Friley and
Waterous is now offering to buy 57mn common CEO Steve Spence.
shares in Osum at CAD3.00 ($2.40) per share, The new bid will remain open for acceptance
up from a previous offer of 52.5mn shares at until March 1.
CAD2.40 ($1.92) per share. The firm already Osum is not the only Canadian producer
holds a 45% stake in Osum. to have been fighting off a hostile bid in recent
The new offer, unveiled on February 18, months. In August, Obsidian Energy proposed
comes not long after the previous – hostile – to take over Bonterra Energy, offering two com-
bid that would have given Waterous an 85% mon shares of Obsidian for each Bonterra share.
stake in Osum was rejected. Indeed, Osum In November, Obsidian shareholders voted to
filed an application with the Alberta Securities approve the issuance of up to 72.3mn shares to
Commission in December to halt the previous carry out the transaction despite strong resist-
bid, arguing that the offer was “inadequate” ance from Bonterra. Indeed, Bonterra dubbed
and undervalued its assets. The new price rep- the offer a “take-under bid” based on relative
resents a 25% increase on the original offer stock prices.
price, implying a deal value of CAD171mn Obsidian has extended the deadline to accept
($137mn). its offer more than once, and the bid is currently
The amended offer was more favourably set to expire on March 29. However, in an oper-
received, with Osum announcing on February ational update last week, Bonterra reiterated its
23 that its board had withdrawn its recommen- previous recommendation to shareholders to
dation that shareholders reject the all-cash offer. reject the hostile offer.™

Calcasieu Pass LNG start-up

could be ahead of schedule

LOUISIANA VENTURE Global LNG’s Calcasieu Pass export with a capacity of 0.626mn tpy, configured in
terminal in Louisiana could be on course to start nine blocks. The first two trains arrived at the
up ahead of schedule. The facility is targeted for Calcasieu Pass site in November, having been
start-up in late 2022 but this week, Bloomberg manufactured by Baker Hughes in Italy. Ven-
cited traders familiar with the matter as saying ture Global hailed the arrival of the trains, less
Venture Global has offered at least 12 LNG car- than 15 months after reaching a final investment
goes for loading from Calcasieu Pass between decision (FID) on the project, as representing a
October 2021 and December 2022. “step-change in LNG construction” at the time.
If the cargoes are awarded, they would be first The company would use the same modular
to be sold on the spot market from the Calcasieu design for any other projects it decides to pro-
Pass plant. Bloomberg acknowledged, however, ceed with, and indeed, it is targeting an FID on
that LNG tenders are not always awarded and Plaquemines LNG, also in Louisiana, for later
that cargoes being offered could be test ship- this year. It has also proposed two further plants
ments. Nonetheless, Venture Global’s CEO, – Delta LNG and CP2 LNG – though there has
Mike Sabel, said in December that construction been some speculation that it may seek to replace
at Calcasieu Pass was ahead of schedule. This was Delta with CP2.
attributed to the project’s modular approach to Venture Global’s reported efforts to market
construction allowing it to proceed despite the spot cargoes come as competition intensifies in
coronavirus (COVID-19) pandemic and a par- the global LNG market. However, LNG produc-
ticularly active hurricane season in 2020. ers will be hoping that recent market volatility
The 10mn tonne per year facility will consist will prompt buyers to take extra steps to ensure
of eighteen small-scale liquefaction trains, each future stability by locking in more supply.™

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