Page 13 - NorthAmOil Week 09

NorthAmOil
NEWS IN BRIEF
NorthAmOil
natural gas gathering and processing sub- system in the Piceance Basin (RRG West) in December 2019, and $5.7mn of restructuring, severance and transaction expenses associated with the November 2019 DPPO amendment and our ongoing initiative to reduce our cost structure.
Heath Deneke, president and chief executive officer, commented, “SMLP has taken a number of actions since the fourth quarter of 2019 to prepare for a challenging macro environment in 2020. In general, we expect a reduction in our customers’ 2020 drilling and completion activities compared
to 2019 as a result of a weakening commodity price backdrop, together with more limited access to capital in the upstream sector. Our 2020 adjusted EBITDA guidance of $260mn to $285mn is based on current plans from our customers, with the lower end of guidance incorporating a substantial amount of risking to each customer’s development timelines and production forecasts, which we believe reflects the current market backdrop. If our customers perform consistently with the recent forecasts that they have provided, we will be positioned to achieve the high end of our guidance range. We expect 2020 total capital expenditures
of $50mn to $70mn, including maintenance capex and approximately $10mn related to our equity method investment in Double E.” SUMMIT MIDSTREAM PARTNERS, February 28, 2020
DOWNSTREAM
Annova LNG signs long-
term lease with Port of
Brownsville
Last week, Annova LNG held a signing ceremony with the Port of Brownsville leadership, celebrating the signing of a 30-year lease with the Port for more than 700 acres.
“We’re thankful for the partnership we have with the Port of Brownsville, and the lease we signed spans a generation, demonstrating the
long-term positive economic impact Annova LNG could bring to the Rio Grande Valley,” said Omar Khayum, Annova LNG CEO.
“As a proven leader for attracting large scale industrial development, the Port of Brownsville welcomes new industry and good paying job creators like Annova LNG,” said John Reed, Brownsville Navigation District Chairman. “This agreement is an investment for the future of the Rio Grande Valley and enhances our ability to support and create better economic opportunities for our region.” ANNOVA LNG, February 28, 2020
SERVICES
Wood delivering engineering design for Chevron’s Anchor US deepwater project
Wood is delivering a multimillion-dollar engineering design project for Chevron’s Anchor deepwater development in the Gulf of Mexico. The scope of the project included the preliminary, front end engineering and design (pre-FEED), FEED and now entails detailed design of Anchor, a wet tree development
that will employ a semi-submersible floating production unit (semi-FPU). This marks the industry’s first deepwater high-pressure development to achieve a final investment decision.
The project will be led by Wood’s engineering teams in Houston, Texas, with the contract awarded under an existing 10- year master services agreement (MSA) with Chevron.
Under the scope of work, Wood is delivering a unique, fully integrated design for the topsides and subsea system, incorporating risers, production flowlines, export pipelines, and flow assurance analysis.
Stephanie Cox, CEO of Wood’s Asset Solutions Americas business said: “With over 30 years of experience designing
deepwater developments, we are committed to supporting the Anchor project and the key role it plays in exploring oil & gas from the deepwater Gulf of Mexico. We are proud to play a part in this milestone U.S. project, which signals a renewed confidence in the region.”
The Anchor discovery is in Block 807
of the Green Canyon Protraction Area, located approximately 225 km off the coast of Louisiana in more than 1,500 m of water. With an operating pressure of 20,000 psi, it’s one of the first ultrahigh-pressure projects in the world. The semi-FPU has a production capacity of 75,000 bpd of oil and 28 mmcf per day of gas, with the potential for future expansion.
WOOD, February 27, 2020
Pioneer Energy Services
announces agreement with
key stakeholders to create
strong capital structure
Pioneer Energy Service announced
today that the company and certain of its subsidiaries have reached an agreement with its key stakeholders regarding the terms of
a comprehensive financial restructuring, including the elimination of its existing notes through a debt-for-equity conversion. To implement the financial restructuring, Pioneer also announced that it had filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the US Bankruptcy Court for the Southern District
of Texas to effectuate its pre-packaged plan
of reorganisation. This Chapter 11 process does not include the company’s international entities, the majority of which are located
in Colombia. As part of the process,
Pioneer began soliciting votes on its plan of reorganisation from certain of its creditors prior to the filing.
Pioneer expects to continue to operate
in the normal course during the court- supervised process and the terms of the restructuring contemplate paying all customer, vendor, and other trade obligations in full in the ordinary course of business.
Pioneer intends to use the Chapter
11 process to implement a balance sheet restructuring by significantly reducing the Company’s long-term debt and related interest costs, providing access to additional financing and establishing a strong capital structure.
In addition to equitising approximately $300mn in aggregate amount of existing notes, Pioneer will raise (i) up to $125mn of
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