Page 13 - NorthAmOil Week 12 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

amount of approximately $229mn and to
repay approximately $208mn of outstanding
borrowings under OMP’s revolving credit
facility.
OASIS MIDSTREAM PARTNERS, March 22,
2021

ENERGY TRANSITION
NextDecade, Oxy Low

bringing previously difficult to access asset two companies who share a common culture Carbon ventures sign term
classes to every investor,” said John Love, prioritising safety and operational excellence.
president and CEO of USCF. “UMI introduces Additionally, the acquisition expands and sheet for CO2 transportation
the midstream energy market to our investors further solidifies our relationship with certain
thoughtfully by not only seeking a high level key customers, facilitates re-entry into both and storage in South Texas
of income but also offering exposure to master the West African and Mexican regions, and
limited partnerships (MLPs) without a K-1.” strengthens our presence in the US Gulf of NextDecade, a clean energy company
USCF, March 24, 2021 Mexico.” accelerating the path to a net-zero future,
NOBLE CORPORATION AND PACIFIC DRILLING, and Oxy Low Carbon Ventures (OLCV), a
March 25, 2021 subsidiary of Occidental and global leader in
SERVICES carbon dioxide (CO2) management, today
announced that they have executed a term
Noble Corporation and MOVES sheet for the offtake and permanent geologic
storage of CO2 captured from NextDecade’s
Pacific Drilling announce Oasis Midstream Partners planned Rio Grande LNG project in the Port
of Brownsville, Texas.
agreement to combine announces acquisition of announced the formation of NEXT Carbon
Earlier this month, NextDecade
Noble Corporation and Pacific Drilling midstream interests from Solutions, a wholly owned subsidiary that is
announced today that they have entered into expected to – among other things – develop
a definitive merger agreement under which Oasis Petroleum and IDR one of the largest carbon capture and storage
Noble will acquire Pacific Drilling in an (CCS) projects in North America at Rio
all-stock transaction. The definitive merger elimination Grande LNG. NEXT Carbon Solutions’ CCS
agreement was unanimously approved by each project at Rio Grande LNG is expected to
company’s Board of Directors. The transaction Oasis Midstream Partners (OMP) today enable the capture and permanent geologic
has also been approved by a majority of Pacific announced it has entered into a contribution storage of more than five million tonnes of
Drilling’s equity holders, and no shareholder and simplification agreement to acquire all CO2 per year.
vote is required for Noble to close the remaining interests in Bobcat DevCo and Under the terms of the agreement, OLCV
transaction. As part of the transaction, Pacific Beartooth DevCo from Oasis Petroleum as will offtake and transport CO2 from the
Drilling’s equity holders will receive 16.6mn well as to eliminate the Partnership’s incentive Rio Grande LNG project and permanently
shares of Noble, or approximately 24.9% of distribution rights (IDRs) in exchange for sequester it in an underground geologic
the outstanding shares of Noble at closing. $229mn cash and 14.8mn units for total formation in the Rio Grande Valley, where
Noble expects to realise annual pre-tax cost consideration of approximately $510mn there is vast CO2 storage capacity, pursuant to
synergies of at least $30mn, and additionally, based on OMP’s 20 day volume weighted a CO2 Offtake Agreement and a Sequestration
will move to dispose of the Pacific Bora and average price ending on March 19, 2021. and Monitoring Agreement to be negotiated
Pacific Mistral expeditiously. The transaction The simplification also includes a right of by the parties.
is subject to customary closing conditions and first refusal in favour of OMP with respect “We are pleased to be working with
is expected to be completed in April 2021. to midstream opportunities in the Painted OLCV to design, construct, and operate a
Noble’s president and chief executive Woods and City of Williston operating areas CO2 pipeline and permanent storage facility
officer, Robert Eifler, said: “The acquisition of Oasis. in South Texas,” said Matt Schatzman,
of Pacific Drilling will enhance our position OMP separately announced today that, NextDecade’s chairman and chief executive
in the ultra-deepwater market through the subject to market conditions, it intends to officer. “OLCV’s expertise and reliability
addition of its technologically-advanced offer $450mn in aggregate principal amount complement the transformative and impactful
ultra-deepwater drillships, which are highly of senior unsecured notes due 2029 in a contributions our NEXT Carbon Solutions
complementary to Noble’s existing fleet. By private placement to eligible purchasers. The business is making to the global energy
bringing these modern drillships into the partnership intends to use the net proceeds industry, and in particular the proprietary
Noble fleet, we will be able to better serve from the senior unsecured notes offering processes we are advancing to lower the cost
the needs of our customers globally and to to make a distribution to Oasis Midstream of utilising CCS technology.”
participate in a wider range of drillship tender Services, a wholly-owned subsidiary of Oasis, “We are excited to partner with
activity. The combination brings together in connection with the simplification in the NextDecade to enable the supply of low-

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