Page 13 - LatAmOil Week 40

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The US super-major said last week that it had completed in the US in recent days. Most nota-
taken a final investment decision (FID) in bly, this week Chevron announced that it had
favour of developing the Payara section of the closed its $13bn acquisition of Noble Energy
block after securing the Guyanese government’s after more than 90% of the latter’s shareholders
approval for its plans, which carry a price tag of approved the transaction.
$9bn. The acquisition gives Chevron a number
of domestic and international assets that the
If you’d like to read more about the key events shaping super-major has described as being comple-
Latin America’s oil and gas sector then please click here mentary to its existing operations. Domestically,
for NewsBase’s LatAmOil Monitor . this includes shale acreage in the Permian Basin,
Denver-Julesburg (DJ) Basin and the Eagle Ford
Middle East: Political and production deals shale. Internationally, Noble’s most attractive
As production numbers were announced for assets are located in the Eastern Mediterranean,
September, compliance with the cartel’s output offshore Israel and Cyprus, as well as off Equato-
cut deal came into sharp focus. This has broadly rial Guinea in West Africa.
improved, with surprising laggard the UAE Another notable deal that closed over the past As production
catching up by making swingeing reductions to week involved the sale of Barnett shale gas assets
production during the month. However, there belonging to Devon Energy to Banpu Kalnin numbers were
is little sign of compliance from Iraq, which saw Ventures (BKV). Devon announced on October announced
another output increase, despite repeated prom- 1 that the transaction had been completed. The
ises to make compensatory cuts. US company received a cash payment of $320mn for September,
Iran, Libya and Venezuela all also recorded from BKV upon closing of the deal, after adjust-
production upticks, with the Islamic Republic ing for a $170mn deposit that was paid in April compliance with
registering an additional 120,000 barrels per and purchase price adjustments.
day, while exports doubled to 1.5mn bpd. Mean- Under the sale agreement, Devon stands to OPEC’s output cut
while, cartel kingpin Saudi Arabia also registered receive further contingent cash payments of up deal came into
a significant increase in exports as it reduced its to $260mn, depending on future commodity
official selling prices (OSPs) to Asia. prices. The company said upside participation sharp focus
Following the US’ brokering of a peace deal would begin at either a Henry Hub gas price of
between the UAE and Israel, the three parties $2.75 per million British thermal units ($76.07
this week agreed to co-operate on energy-related per 1,000 cubic metres) or a West Texas Interme-
matters. The deal was as wide-reaching as it was diate (WTI) oil price of $50 per barrel, starting
vague, but will be played as a major foreign pol- in 2021.
icy win by the White House in the run-up to the The announcement that the Barnett shale
November presidential election. deal had closed came within days of Devon’s
Washington was not done in the region, announcement that it was merging with another
though. It will play a mediatory role in the com- shale company, WPX Energy. The latter has core
ing to the table of Israel and Lebanon as they seek positions in the Permian and Williston basins
to resolve a lengthy dispute about their maritime and this, combined with the Barnett sale, illus-
border. A deal could lead to exploration in Leba- trates Devon’s shift towards more oil-rich assets.
non’s Block 9 by a consortium led by Total. The merger is being touted as providing a
roadmap for future consolidation in the shale
If you’d like to read more about the key events shaping industry, involving stock rather than cash, and
the Middle East’s oil and gas sector then please click little to no premium.
here for NewsBase’s MEOG Monitor.
If you’d like to read more about the key events shaping
North America: Deals close in US North America’s oil and gas sector then please click
Some major oil and gas deals have been here for NewsBase’s NorthAmOil Monitor..

Week 40 08•October•2020 www. NEWSBASE .com P13