April 6, 2016 • Volume 08, No. 05 INTERNATIONALDEALS Serving the marketplace with news, analysis and business opportunities Exxon in talks for some of Eni’s 85 Tcf off Mozambique Rumors of big deals dominate Just days after Eni unveiled a 2016-2019 master plan targeting ~US$8 billion market as activity slows (€7 billion) in asset sales, multiple media outlets reported a deal in the works that It’s been a roller coaster of a deal could make a serious dent in that goal. The Italian energy company is in talks to sell market so far in 2016—starting slow, 15-20% WI in its multi-discovery Area 4 gas project offshore Mozambique then bursting into high gear following to ExxonMobil, according to unnamed sources. In 2013, before the oil-price the closing of the Shell/BG mega- crash, CNPC acquired 20% WI merger, and then braking to a CNPC bought 20% WI for $4.2 billion for $4.2 billion. Galp, Kogas and state- near-standstill. Only one new in 2013, albeit amid higher oil prices. owned ENH own 10% each. transaction with a disclosed In several ways, such a deal would be a perfect fit. Eni wants to raise most of its value was announced in this news cycle: 2016-2019 divestment proceeds by selling down stakes in recent discoveries while Geo-Jade’s US$395 million acquisition retaining operatorship. On a conference call, operations chief Roberto Casula said of Bankers Petroleum. In contrast, the Eni was working on a deal to reduce its 50% WI in Area 4 before making an FID and top five deals in the previous news cycle called it and the Zohr gas discovery offshore Egypt “the two possible first assets that totaled $775 million. we’re going to consider for disposal.” Meanwhile, Exxon has been gearing up for a large acquisition. Continues On Pg 6 Just one deal with disclosed value in this issue after flurry of activity. Indian producers buy stakes in major Rosneft oil projects Rosneft agreed to sell stakes worth an estimated $4 billion in two of its biggest That said, some recently announced Siberian oil projects to Indian state-owned oil and gas companies to finance further deals with undisclosed values and development efforts. A consortium of Oil India Ltd., Indian Oil Corp. and refiner rumored deals in the works may end Bharat Petroleum signed a binding agreement to acquire 29.9% WI in East up being quite large. For example, PLS Siberia’s Taas-Yuryakh project and a heads of agreement to acquire 23.9% expects Rosneft’s sell-down to Indian WI in the Vankor project farther north. In addition, top Indian producer NOCs of stakes at two key Arctic fields ONGC signed an MOU to increase its (to the left) to bring in ~$4 billion, based Vankor stake by 11% to 26%. ONGC boosts Vankor stake to 26%; on recent deals at those same fields. 3 other NOCs buy into Siberian fields. ONGC agreed to acquire an initial In addition, past transactions offshore 15% WI in Vankor last fall, at which time Rosneft CEO Igor Sechin told journalists Mozambique indicate that a rumored the Indian NOC was paying ~$1.25 billion. That implies pricetags of ~$900 million acquisition by ExxonMobil of a stake for ONGC’s additional 11% and ~$2 billion for the consortium’s 29.9%. As for Taas- in Eni’s gas discoveries could also be Yuryakh, Rosneft said the price parameters for the consortium’s buy there are similar to worth billions. Continues On Pg 3 Continues On Pg 8 those in BP’s 20% WI acquisition that closed in November. DEALS FOR SALE Chinese E&P Geo-Jade to acquire Bankers for $395 million Albania-focused oil producer Bankers Petroleum entered a definitive agreement AUSTRALIA OPPORTUNITY 1-Permit. >600,000-Acres. to be acquired by Chinese independent E&P company Geo-Jade Petroleum in a COOPER BASIN plan of arrangement valued at US$395 million. Known Structural Prospects & Leads. PP Geo-Jade will pay $1.69/share (C$2.20/share) or $443 million 2-D & 3-D Seismic Data Available. cash and assume the Calgary-based company’s $47 million SEEKING JV PARTNER SEEKING Production Rates: 500-1,000 BOPD JV working capital surplus. The cash offer is nearly double Bankers’ prior-day closing Potential Recoverable Oil: 50 MMBO price of C$1.11 on the TSX, but shares rose only ~55% the day of the announcement, CONTACT ADVISOR FOR DETAILS indicating that investors have doubts PP 1097DV about the deal going through. Nearly 100% premium for Bankers, but investors wary of little-known buyer. Bankers has 202 MMbo of 2P WEST AFRICA OFFSHORE reserves and produced 18,137 bo/d in 4Q15, almost entirely from the Patos- 3-Fields. SHALLOW WATERS Marinza oil field onshore western Albania (100% WI). Patos Marinza was NonOperated WI For Sale. PP discovered in 1928 by Anglo Persian Oil Co. and developed in stages by the Large Existing Production Base. Russians and Albanians until Communism fell in Albania in 1990. Bankers signed Low Breakeven Operating Costs. NONOP a new concession agreement in 2004 and grew production from 400 bo/d to 6,000 PLS ENERGY ADVISORS IS HANDLING CALL TO REGISTER INTEREST bo/d in 2007 by reactivating legacy vertical wells. Horizontal drilling has driven PP 5994DV subsequent production growth. Continues On Pg 11 All Standard Disclaimers & Seller Rights Apply. INTERNATIONALDEALS 2 April 6, 2016 Latin America Global Petrobras’ $15 billion divestment program gains momentum DOJ sues to block merger of After going more than seven months without making a dent in its US$15 billion Halliburton/Baker Hughes divestment goal for 2016, Petrobras is reportedly in talks with several potential buyers The US Department of Justice that could bring in billions. Media outlets have reported negotiations for an offshore filed an antitrust lawsuit to block oil field and a stake in a Brazilian petrochem company, citing unnamed sources. Halliburton’s proposed US$38 billion Local E&P firm PetroRio, Russia’s LetterOne and Australia’s Karoon acquisition of Baker Hughes, which Gas have made offers to acquire’ Bauna oil field (100% WI) in the offshore has been in the works for Santos Basin, Bloomberg reports. Bauna was producing 55,000 bo/d last nearly a year and a half. September. According to the article, Bank According to the DOJ, the deal threatens of America is marketing Bauna along Multiple offers reported for offshore Bauna field & stake in petrochem firm. to raise prices and reduce innovation by with Golfinho and Tartaruga fields, which eliminating competition in markets for 23 are expected online next year. In addition, Brazilian daily Valor reports that CNOOC products. The deal would combined two is interested in acquiring a minority stake in petrochem firm Braskem from Petrobras, of the three largest service companies, which owns 36%. Reuters adds that Petrobras has also had preliminary talks with major resulting in an entity bigger by revenue international chemical companies for its stake and that Braskem’s controlling shareholder, than Schlumberger. engineering conglomerate Grupo Odebrecht, is also looking to sell out and may arrange Halliburton has proposed $7.5 billion a joint transaction. Braskem has a current market cap of ~$5 billion. in asset sales to avoid antitrust issues, These reports follow a bid in early March by Argentine power company Pampa and a revised plans presented to the DOJ Energia for a 67.2% stake in Petrobras Argentina reportedly for $1.2 billion. in January may have raised that figure even higher. However, the DOJ says the TransCanada to sell up to 49% of Mexican gas business proposed divestitures include less-valuable To help finance the US$13 billion acquisition of US pipeline operator Columbia assets that would not meaningfully Pipeline Group, TransCanada plans to sell a minority stake in its Mexican gas increase competition. pipeline business. “What we’re going to do is sell up to 49% to a passive investor or Halliburton and Baker have vowed to financial investor,” Mexico country chief Robert Jones told Bloomberg. “It will have no fight the DOJ effort, arguing that the merger impact in our ability to finish the projects we are constructing.” TransCanada has 152 will provide oilfield customers a more employees across 13 states in Mexico, where it brought in C$259 million in revenue last efficient service provider and reduce costs. year. This is expected to increase significantly for 2016 with its 530-km, 670 MMcf/d Topolobampo and 413-km, 200 MMcf/d Mazatlan pipelines coming into service. January 7, 2015 • Volume 08, No. 01 ABOUT PLS MIDSTREAMNEWS Serving the marketplace with news, analysis and business opportunities TransCanada operates the 315-km, 500 MMcf/d Cheniere’s Corpus Christi LNG plans coming together Midstream sector a pipeline Cheniere Energy received word that FERC had approved plans for its Corpus for stability & growth Christi LNG liquefaction facility and related infrastructure. The project will have three While oil prices plunged unabashedly InternationalDeals is published every 4.5 mtpa LNG trains, giving it aggregate production capacity of 13.5 mtpa. The site throughout the second half of 2014, will also include three LNG storage tanks with capacity of about 10.1 and continue their fall as the new year Guadalajara and 365-km, 825 MMcf/d Tamazunchale/ Bcfe and two LNG carrier docks. Cheniere believes LNG exports gets underway, midstream MLPs that from the facility couldNext begin in 2018. Right MidstreamNews now, the plant is awaiting US Department operate under long-term fee-based three weeks by PLS Inc. of Energy approval to ship to markets not covered by US free trade agreements.