- Dec 26, 2018
- Hydrocarbons Technology
Marathon Petroleum (MPC) completed the $23.3bn acquisition of all outstanding shares of integrated marketing, logistics and refining company Andeavor to create the largest independent US refiner by capacity.
As a result of the transaction, which was agreed in April and represents a total enterprise value of $35.6bn, Andeavor will no longer trade on the New York Stock Exchange.
The acquisition has resulted in the formation of an integrated energy company with an initial enterprise value of more than $90bn. MPC shareholders own 66% of the combined company, while Andeavor shareholders hold the remaining 34% stake.
The A$13bn ($9.79bn) proposed acquisition of Australian gas pipeline company APA Group by a Hong Kong-based consortium led by CK Infrastructure Holdings (CKI) collapsed after the Australian Government rejected the transaction.
Australia Treasurer Josh Frydenberg vetoed the proposal and said that it would be contrary to the national interest.
Frydenberg said: “I have formed this view on the basis that it would result in a single foreign company group having sole ownership and control over Australia’s most significant gas transmission business.”
US petroleum and natural gas explorer Chesapeake Energy signed a $3.97bn agreement to acquire WildHorse Resource Development in order to gain a significant position in the Eagle Ford Shale and Austin Chalk formations in south-east Texas.
The transaction includes the assumption of WildHorse’s net debt of $930m and will expand Chesapeake’s oil growth platform, as well as increase cash flow.
According to the agreement, WildHorse common shareholders will receive either 5.989 shares of Chesapeake common stock or a combination of 5.336 shares of common stock and $3 in cash, for each share held by them.
Brazilian oil company Petrobras has agreed to pay $853.2m in penalties to the US and Brazilian authorities to settle longstanding investigations into the alleged Car Wash corruption row.
The fines will be used to settle violations of the US Foreign Corrupt Practices Act (FCPA).
Listed on the New York Stock Exchange, the company was accused of bribing politicians and political parties in Brazil and then trying to conceal these payments from investors and regulatory agencies. The bribes were paid to secure contracts for contractors at inflated prices.
Canadian oil and gas producer Encana signed a deal to acquire all of the outstanding shares of common stock of Newfield Exploration Company in a $5.5bn deal that will provide the former with significant positions in some of North America’s biggest oilfields.
The all-stock deal represents Encana’s biggest-ever transaction and will also include the assumption of $2.2bn of Newfield net debt.
Encana claimed that the acquisition is expected to result in the creation of the second largest producer of unconventional resources in North America, with a pro-forma Q3 2018 production of 577,000 barrels of oil equivalent per day (boed).
BASF entered a definitive combination agreement to merge its Wintershall oil and gas business with global investment firm LetterOne’s DEA, in order to create the largest independent European exploration and production company.
To be called Wintershall DEA, the combined entity will have operations in 12 countries across Europe, Latin America, North Africa and the Middle East, with pro-forma production of 575,000boed last year.
The companies aim to increase the production of Wintershall DEA to between 750,000boed and 800,000boed in the early 2020s.
US-based energy infrastructure firm Kinder Morgan was reportedly exploring the sale of its Canadian business after facing setbacks in the country due to environmental, political and legal hurdles.
The company appointed investment bank TD Securities to find a potential buyer for its remaining assets in Canada, Reuters reported citing unnamed sources familiar with the matter.
Marking the company’s exit from the country, the proposed sale is valued at C$2.4bn ($1.8bn).
Diamondback Energy signed a $9.2bn agreement to acquire US oil and gas exploration and production company Energen.
The total consideration also includes Energen’s net debt of $830m.
Under the terms of the agreement, Diamondback will issue 0.6442 common stock shares for each share of Energen common stock.
BP’s subsidiary BP American Production Company signed agreements to acquire BHP’s entire interests in the Eagle Ford, Haynesville and Permian onshore oil and gas assets in the US, in a $10.5bn deal.
According to the deal, the BP unit will buy all of the issued share capital of BHP’s subsidiary Petrohawk Energy that holds the onshore assets.
Through the acquisition, BP hopes to upgrade and reposition its US onshore oil and gas business, with access to production and resources in the liquids-rich regions in Texas and Louisiana.
Saudi Aramco signed a framework agreement with the Abu Dhabi National Oil Company (Adnoc) to jointly develop and build the proposed $44bn integrated refinery and petrochemicals complex in Maharashtra, India.
Located at Ratnagiri, the refinery is expected to have a processing capacity of 1.2 million barrels of crude oil a day and will produce refined petroleum products, including petrol and diesel meeting Bharat Stage VI (BS VI) fuel-efficiency regulations of India.
Under the terms of the agreement, Aramco and Adnoc will build, own and operate the complex under a joint venture (JV) with a consortium of Indian national oil companies comprising Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL).