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But the company’s ambitions appear to have here for NewsBase’s MEOG Monitor..
been thwarted by reports of CEO Eduardo
Antonello’s involvement in bribery charges. North America: Deals close in US
Petrobras, the national oil company (NOC) of Some major oil and gas deals have been com-
Brazil, has declined to accept Golar’s offer to pleted in the US in recent days. Most notably,
lease the Bahia LNG terminal, citing concerns this week Chevron announced that it had closed
about excessive risk. its $13bn acquisition of Noble Energy after more
This move raises questions about Petrobras’ than 90% of the latter’s shareholders approved
plans for the facility, as Golar had been the only the transaction.
company to submit a binding offer for the lease The acquisition gives Chevron a number
contract. The NOC has revealed that Compass of domestic and international assets that the
Gas e Energia, a local firm, declined to bid, and super-major has described as being comple- Another notable
BP Energy do Brasil, a subsidiary of BP (UK), has mentary to its existing operations. Domestically,
asked for more time to finalise its offer. this includes shale acreage in the Permian Basin, deal closed over
In other news, Brazilian officials are reported Denver-Julesburg (DJ) Basin and the Eagle Ford the past week
to be in talks with Argentina on a gas import shale. Internationally, Noble’s most attractive
deal. The two sides are discussing proposals for assets are located in the Eastern Mediterranean, involved the sale
the construction of a $1.2bn pipeline that would offshore Israel and Cyprus, as well as off Equato-
pump gas from unconventional fields in Argen- rial Guinea in West Africa. of Barnett shale
tina’s Vaca Muerta formation to southern Brazil. Another notable deal that closed over the past
Elsewhere in South America, ExxonMobil is week involved the sale of Barnett shale gas assets gas assets
pushing forward with work at the Stabroek block belonging to Devon Energy to Banpu Kalnin
offshore Guyana. The US super-major said last Ventures (BKV). Devon announced on October
week that it had taken a final investment decision 1 that the transaction had been completed. The
(FID) in favour of developing the Payara section US company received a cash payment of $320mn
of the block after securing the Guyanese govern- from BKV upon closing of the deal, after adjust-
ment’s approval for its plans, which carry a price ing for a $170mn deposit that was paid in April
tag of $9bn. and purchase price adjustments.
Under the sale agreement, Devon stands to
If you’d like to read more about the key events shaping receive further contingent cash payments of up
Latin America’s oil and gas sector then please click here to $260mn, depending on future commodity
for NewsBase’s LatAmOil Monitor . prices. The company said upside participation
would begin at either a Henry Hub gas price of
Middle East: Political and production deals $2.75 per million British thermal units ($76.07
As production numbers were announced for per 1,000 cubic metres) or a West Texas Interme-
September, compliance with the cartel’s output diate (WTI) oil price of $50 per barrel, starting
cut deal came into sharp focus. This has broadly in 2021.
improved, with surprising laggard the UAE The announcement that the Barnett shale
catching up by making swingeing reductions to deal had closed came within days of Devon’s
production during the month. However, there announcement that it was merging with another
is little sign of compliance from Iraq, which saw shale company, WPX Energy. The latter has core
another output increase, despite repeated prom- positions in the Permian and Williston basins
ises to make compensatory cuts. and this, combined with the Barnett sale, illus-
Iran, Libya and Venezuela all also recorded trates Devon’s shift towards more oil-rich assets.
production upticks, with the Islamic Republic The merger is being touted as providing a
registering an additional 120,000 barrels per roadmap for future consolidation in the shale
day, while exports doubled to 1.5mn bpd. Mean- industry, involving stock rather than cash, and
while, cartel kingpin Saudi Arabia also registered little to no premium.
a significant increase in exports as it reduced its
official selling prices (OSPs) to Asia. If you’d like to read more about the key events shaping
Following the US’ brokering of a peace deal North America’s oil and gas sector then please click
between the UAE and Israel, the three parties here for NewsBase’s NorthAmOil Monitor..
this week agreed to co-operate on energy-related
matters. The deal was as wide-reaching as it was
vague, but will be played as a major foreign pol-
icy win by the White House in the run-up to the
November presidential election.
Washington was not done in the region,
though. It will play a mediatory role in the com-
ing to the table of Israel and Lebanon as they seek
to resolve a lengthy dispute about their maritime
border. An agreement could lead to exploration
in Lebanon’s Block 9 by a consortium led by
Total.

If you’d like to read more about the key events shaping
the Middle East’s oil and gas sector then please click

P12 www. NEWSBASE .com Week 30 07•October•2020