Page 10 - LatAmOil Week 29 2020

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For years, Baghdad has struggled with OPEC Eastern Mediterranean region.
compliance, and just as other member countries The deal’s price-tag values each Noble share
prepare for the easing of restrictions, Iraq agreed at $10.38 – a 7.5% premium to its closing price
to implement compensatory cuts to make up for on July 17. However, the company’s share price
historic non-compliance. This will see an addi- had fallen more than 60% between the start of
tional reduction of 70,000 bpd in July, another the year and July 17, and thus the deal may still be
314,000 bpd in August and 313,000 bpd in seen as a bargain. This is also the super-major’s
September. first significant acquisition since it walked away
Meanwhile, Oman noted its “100% commit- from Anadarko Petroleum last year, having been
ment to the OPEC+ alliance” as it announced outbid by Occidental Petroleum.
that it would produce 161,000 bpd below its Like Anadarko, Noble comes with acreage
OPEC quota from September. in the Permian Basin. However, it is the East- For some
Aside from the OPEC+ agreement, Bahrain ern Mediterranean assets that are thought to be
has been talking up its plans to create a state Noble’s main attraction. struggling
holding company for the island’s oil and gas There are hopes that a new wave of merg-
assets, and eyeing international investors to take ers and acquisitions (M&As) will follow, with companies,
part in a potential IPO. However, given the com- deep-pocketed majors potentially leading the
parative paucity of resources, market volatility charge to snap up indebted companies at bargain being taken
and the array of more attractive options avail- prices. Indeed, the same day as the Chevron deal, over may be an
able, such an initiative may struggle to garner commodity trader Vitol announced that it was
significant interest. forming a new company, Vencer Energy, which attractive option
would seek to buy mature, producing oil and gas
If you’d like to read more about the key events shaping assets in the US.
the Middle East’s oil and gas sector then please click For some struggling companies, being taken
here for NewsBase’s MEOG Monitor. over may be an attractive option while others
are pushed into bankruptcy protection. Indeed,
North America: M&A boost due to Chevron two US producers – Bruin E&P Partners and
Chevron announced this week that it had struck California Resources – have announced over
a deal to buy Noble Energy in a deal worth $5bn, the past week that they are filing for Chapter 11
or $13bn including debt. This is the first major bankruptcy protection. They join a long list of
energy industry transaction since the oil price US oil and gas company bankruptcies from the
downturn began in March. past few years that is anticipated to grow even
The deal is also notable because it will make larger in the coming months..
Chevron the first super-major to enter Israel.
Noble’s Israeli assets will help weigh Chev- If you’d like to read more about the key events shaping
ron’s portfolio more towards gas – and are also the North American oil and gas sector then please click
expected to help act as a springboard in the here for NewsBase’s NorthAmOil Monitor .™

P10 www. NEWSBASE .com Week 29 23•July•2020