Pioneer/Sinochem
$1.7B Wolfcamp JV
January 8, 2013 |
Devon Energy
Sinopec & Sumitomo
January 9, 2013 |
Nexen/CNOOC
$17.9 B Corporate Sale
July 23, 2012 |
Cove Energy/PTTEP
$1.8 B Corporate Sale
June 20, 2012 |
Two days ago on Jan. 30, Pioneer Natural Resources announced a $1.7B JV with Sinochem on 207,000 net acres in the horizontal Wolfcamp shale play. Terms call for $0.5B cash plus $1.2B to be paid by carrying 75% of PXD's future drilling costs. Ownership will be PXD (60%), Sinochem (40%). After allocating $150 MM to existing horizontal wells, PLS values the deal at $18,720 per acre. Another perspective on the costs and economics in the play is shown here from Laredo. This is PXD's first Chinese NOC JV. Sinochem previously in May 2010, did a $3.1B deal with Statoil to buy 40% of a Brazil offshore field (Peregrino). That deal closed April 2011.
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Devon Energy struck a $2.25B JV with Sinopec in January 2012 to drill across 5 unconventional US plays covering 1.5 MM net acres. Split was Devon (66.7%), Sinopec (33.3%). Sinopec paid $0.9B cash plus a $1.6B carry. Sinopec's latest deal is a November $2.5B buy of a 20% interest in Nigeria's Usan oilfield from Total (by the way, CNOOC got a separate 20% interest in the same field via its Nexen buy). Last August, Devon did its second Asian-partner JV, though this time not with a NOC, but with Japan's Sumitomo for $1.4B ($0.4B cash, $1.0B carry). Ownership: Devon 70%, Sumitomo 30%. This JV covers 650,000 acres in the Wolfcamp and Cline shale plays.
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In the largest Chinese NOC buy to date, CNOOC agreed in July 2012 to buy Nexen for $18B cash plus net debt. The deal has yet to close but did get Canadian government approval on December 8, 2012. The corporate buy allows CNOOC to establish a platform run by the existing Nexen operating and management team to further its regional growth objectives. For perspective on CNOOC, the company just recently announced its 2013 capital plan of $16B, of which 64% is within China. CNOOC's most recent deal is a $1.9B buy to acquire an interest in the Queensland Curtis LNG project in Australia, announced on October 31, 2012 from BG.
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After a hard fought bidding battle with Shell, PTTEP (the NOC of Thailand) won the buy of Cove Energy for $1.8B in cash plus debt. The deal closed August 17, 2012. Cove's highly prized deepwater position in East Africa, offshore Mozambique and Kenya, attracted major oil companies across the globe. In Mozambique, Anadarko has been a leader in finding a giant gas resource that will be utilized to supply LNG to Asia. PTTEP continues to buy and in October 2012 bought a 15% interest in the Natuna gas project in Indonesia from operator Pertamina. For more intelligence, this slide shows PTTEP's major exploration activities across the globe.
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