Sale and Purchase News

Publication December 11, 2015

North Sea

  • LetterOne, who was compelled by the UK Government to sell-off its UK North Sea fields acquired when it took over RWE Dea earlier this year, has reportedly reached an agreeement with INEOS.
  • OMV is in the process of selling down some of their UKCS portfolio, including a 30% stake in the Rosebank oil and gas project in the North Sea.
  • E.ON is looking to sell off its stake in the Norwegian and UK North Sea where it holds in a 30% stake in the Njord field, a 28.1% stake in the Skarv field and a 17.5% stake in the Hyme field in Norway and operates the Huntington, Babbage, Johnston, Hunter and Rita fields as well as holding non-operated stakes in a number of other producing fields in the UK. Bank of America Merrill Lynch is managing the sale process, and LetterOne fund's Mikhail Fridman is the frontrunner for the UK assets.
  • DONG Energy is in the process of spinning off its E&P business unit and has hired JP Morgan to advise on the sale process and IPO.

Africa

  • Delek Group is looking to sell its 47% stake in the Tanin and Karish gas fields offshore Israel. Estimates place the gas reserves in the Tanin field in excess of 1 tcf. Edison S.p.A., EOG Resources and Hess Corp have been identified as potential buyers.
  • Tullow Oil is looking to sell up to a 15% to 25% equity stake in Block 3111 (Berenty) onshore Madagascar where it currently holds a 65% participating interest. Tullow Oil is also considering a possible sale of its stake in a neighboring block – Block 3109 (Mandabe) where it also currently holds a 65% participating interest.
  • Chevron is seeking to sell off its 40% stake in shallow water assets OMLs 86 and 88 in the Niger Delta (the remaining 60% being held by NNPC)
  • E.ON is looking to sell off its stake for $2 billion in the Rhourde Yacoub exploration area in the Berkine Basin in Algeria where it holds a 49% participating interest. Bank of America Merrill Lynch is managing the sale process.
  • Marathon Oil has sold its Kenyan and Ethiopian assets and 50% stake in the Rift Basin Area Block in Ethiopia (operated by Africa Oil) and its 20% stake in the South Omo Block in Ethiopia (operated by Tullow Oil) and its 50% stake in Block 9 in Kenya (operated by Africa Oil) and its 15% stake in Block 12A in Kenya (operated by Tullow Oil) to an undisclosed buyer for an undisclosed amount.
  • ERHC Energy is looking to farm down a further stake from its 35% carried interest in the exploration acreage in Block 11A onshore Kenya.

Eastern Europe

  • Petrotomsk is looking to farm-down exploration acreage interests in Blocks 79/2 and 81/2 in Western Siberia (where it holds a 100% interest).
  • Tethys Petroleum is looking to sell down exploration acreage in three blocks in Georgia (where it holds a 56% interest, the 44% balance being held by the Georgian NOC).

Americas

  • ConocoPhillips is said to be near to reaching a deal to sell $1 billion worth of its production assets in Western Canada (representing 20% of its Canadian oil stake).
  • Freeport-McMoRan is reported to be pursuing the sale of a minority equity stake and potential IPO of its oil and gas subsidiary which focuses on domestic US assets.

Asia

  • Origin Energy is seeking purchasers for an up to 45% stake in Block 121 offshore Vietnam.
  • EASCO is seeking purchasers for an up to 75% stake and operatorship in the East Sepanjang PSC offshore Indonesia.

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