Page 8 - GLNG Week 01 2021

GLNG NRG GLNG

Venezuela as a result of US sanctions imposed drilling programme in the prolific West Karoun
on the country. Because of this, Halliburton oil cluster.
is reducing its Venezuelan workforce,” she
explained. “Halliburton remains committed to If you’d like to read more about the key events shaping
maintaining a presence in Venezuela.” the Middle East’s oil and gas sector then please click
She was speaking after Reuters reported that here for NewsBase’s MEOG Monitor.
three little-known companies based in the UAE
– Asia Charm, Issa Shipping and Muhit Mari- NorthAmOil: Shale consolidation continues
time – had begun handling Venezuelan crude in Consolidation of the US shale industry con-
the second half of 2020. The news agency noted tinued over the 2020-21 festive season, with
in late December that the firms in question had Diamondback Energy announcing on Decem-
taken control of about half a dozen tankers pre- ber 21 that it had struck a deal to acquire QEP
viously used to ship Venezuelan oil and fuels and Resources. The all-stock transaction was valued
then renamed them before resuming shipments at around $2.2bn, including QEP’s net debt,
from the South American state. which stood at $1.6bn as of September 30, 2020.
A spokesman for the US State Department Diamondback is a pure play Permian
responded to questions from Reuters by saying Basin-focused company, and the primary attrac-
that Washington was “closely tracking these tion of the deal is considered to be QEP’s assets in
kinds of creative efforts by companies to avoid the region’s Midland sub-basin. QEP’s Williston
sanctions.” Meanwhile, authorities in the UAE Basin in North Dakota will be considered non-
say they have already launched “a thorough and core and will be used to generate cash flow or There is still
comprehensive investigation” into the matter. sold off, depending on market conditions, the some uncertainty
companies said. The merger is anticipated to
If you’d like to read more about the key events shaping close in the first or second quarter of 2021. about whether
the Latin American oil and gas sector then please click Separately, Diamondback announced on
here for NewsBase’s LatAmOil Monitor. the same day that it had agreed to acquire all Erbil will provide
leasehold interests and related assets of Guidon
MEOG: Iraqi budget, Iranian exploration Operating in exchange for 10.63mn shares of its SOMO with the
The holiday period was dominated by the news common stock and $375mn in cash. That deal is required volumes
that Iraq’s government has passed a budget due to close by the end of February.
for 2021, despite issues relating to Kurdish oil Together, the QEP and Guidon deals will of crude oil.
exports remaining unresolved. Meanwhile, Iran bring Diamondback’s total leasehold interests
has once again tasked domestic oil firms with to over 276,000 net surface acres (1,117 square
ramping up production, with a new raft of deals km) in the Midland Basin. Across both the
handed out to local companies. Delaware and Midland basins the company
While Baghdad has given the green light will have around 429,000 net acres (1,736
to this year’s $103bn budget, there is still some square km).
uncertainty about whether or not Erbil will The Diamondback deals follows several
provide the State Oil Marketing Organization other shale-focused mergers and acquisitions
(SOMO) with the required 250,000 barrels per (M&As) that were unveiled in the second half
day (bpd) of crude stipulated in that budget. of 2020 as operators increasingly saw consoli-
Some sources are suggesting this may not hap- dation as a means to navigate a market experi-
pen, though KRG officials have said they are encing unprecedented challenges. Indeed, in
ready to begin deliveries. an update on a separate deal, shareholders of
With Iraqi finances on the edge of collapse, Devon Energy and WPX Energy approved the
the central bank has also devalued the dinar proposed merger between those two companies
against the US dollar in a bid to maximise dinar on December 30, with that transaction set to
revenues from dollar-denominated crude. close on January 7.
In Iran, the state oil firm NIOC has awarded Other pending deals due to close in the
$1.2bn worth of deals through subsidiaries for first quarter of 2021 include Pioneer Natural
work at on- and offshore fields with the aim of Resources’ acquisition of Parsley Energy and
ramping up oil production. The award follows ConocoPhillips’ takeover of Concho Resources.
the nearly $1.8bn of contracts awarded to 14
local companies in August for the same pur- If you’d like to read more about the key events shaping the
pose. Meanwhile, the country has continued North American oil and gas sector then please click here
to emphasise drilling by completing a major for NewsBase’s NorthAmOil Monitor. ™

P8 www. NEWSBASE .com Week 01 08•January•2020