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International Deals | PLS August 30, 2016 • Volume 08, No. 13 INTERNATIONALDEALS Serving the marketplace with news, analysis and business opportunities Siccar Point buys into Mariner heavy oil project off UK Bashneft sale shelved after Two years after private equity firms Blackstone Energy Partners and Blue Water Lukoil balks, Rosneft wants in Energy teamed up to form North Sea-focused Siccar Point Energy, the E&P firm has Russia indefinitely tabled the finally announced its first acquisition. It is buying 8.9% WI in the Greater Mariner area of auction of its 50.08% stake in mid-sized the UK North Sea from Japan’s JX Nippon, which will retain 20% WI. Statoil operates oil producer Bashneft after expected with 65.1% WI and Dutch non-op Dyas owns the remaining 6%. The area’s US$7.7 bidder Lukoil got cold feet billion Mariner heavy oil development is underway with first oil expected in 2H18. and officials debated whether Siccar Point launched to allow a sale to No. 1 First deal for startup with $500MM in August 2014 with producer Rosneft. The Bashneft sale Blackstone, Blue Water & GIC backing. initial funding of $500 was proposed early this year as a major million from Blackstone, Blue Water and Singaporean sovereign wealth fund GIC. part of Russia’s deficit reduction plan Its strategy focuses on acquiring undercapitalized fields and developments on the UK Continental Shelf as established producers like Total and Shell reduce their footprints. Russia had planned to auction off its The company is led by CEO Jonathan Roger, who was COO of North Sea producer controlling stake as early as September. Venture Production until its acquisition by Centrica in 2009 and then continued to and was expected as early as September, oversee the assets as upstream managing director. Continues On Pg 13 so the delay surprised investors, sending Energean acquires two gas finds off Israel for $149MM the company’s stock down 8% the day Israel’s Delek Group agreed to sell 100% WI in the undeveloped offshore Tanin and after the Aug. 16 announcement. Karish gas discoveries to private Greek E&P Energean Oil & Gas for US$148.5 million. A number of companies had The sale satisfies a requirement of the framework agreement that Delek expressed interest in taking control of and Noble Energy signed with Israeli regulators to allow development Bashneft, but Lukoil and Rosneft were of their 22 Tcf Leviathan discovery. In November, Noble sold its 47% the only two with sufficient funds to do stakes in Tanin and Karish to Delek for $73 million to simplify the divestment process. so without taking on substantial debt. As The acquisition represents a major of Aug. 16 the stake had a market value expansion for Energean, which is Greece’s Tanin/Karish sale required to advance of RUB320 billion (US$5.0 billion). Noble & Delek’s larger Leviathan project. only producer with offshore assets that have When Russia announced its plan to been producing for more than 35 years. Energean holds four exploration and development sell a blocking stake in Bashneft in Q1, it licenses in Greece and one in Egypt; it was also recently awarded two exploration blocks did not initially specify how much of the off Montenegro. The company produces 5,000 boe/d from the Prinos complex in Greece’s firm it would divest. Continues On Pg 6 North Aegean Sea and is engaged in a 15-well program to double production by 2018. Its operated Prinos license (100% WI) holds 2P reserves of 30 MMbo. Continues On Pg 8 DEALS FOR SALE Pertamina takes 25% Maurel & Prom stake for $352 million As a first step toward taking full ownership of Africa-focused E&P firm Maurel AUSTRALIA OPPORTUNITY 1-Permit. >600,000-Acres. & Prom, Indonesia’s state-owned Pertamina paid €4.20/share (US$4.69/share) for the COOPER BASIN 24.53% equity stake owned by Pacifico, a company controlled by M&P CEO Jean- Known Structural Prospects- PP Francois Henin. The purchase price represents a 47% premium to M&P’s closing -- & Leads. share price the trading day before the Aug. 2 deal announcement. Pertamina 2D & 3D Seismic Data Available. SEEKING SEEKING JV PARTNER JV completed the acquisition Aug. 25. It will make an additional €0.50/share earn- Production Rates: 500-1,000 BOPD out payment if Brent oil stays above $65/bbl for 90 consecutive days during 2017. Cum Prod: 80+ MMBO From Surrounding PLS values the acquisition at €315.2 Or Nearby Fields million ($352.2 million) including Implies 47% premium to previous Potential Recoverable Oil: 50 MMBO M&P trading, $1.4B EV for full company. assumed net debt of €119.7 million ($133.7 PP 1097DV million). That implies an enterprise value of €1.28 billion ($1.44 billion) for the entire SOUTHEAST ASIA GAS RESERVES company. Pertamina plans to make a buyout offer with the same terms for the remainder 8-Wells. of M&P’s shares pending a positive recommendation from the M&P board, which has HIGH IMPACT OPPORTUNITY appointed the French firm Ledouble as an independent expert to produce a fairness Some Land & - DS opinion on the deal. The board has unanimously indicated its support for the combination. -- Title Issue To Resolve. BANKRUPTCY NONOPERATED WI POSITION After Pertamina closed on the Pacifico stake, M&P named the NOC’s E&P DS 1013 business development SVP Denie S. Tampubolon to its board. Continues On Pg 11 All Standard Disclaimers & Seller Rights Apply. INTERNATIONALDEALS 2 August 30, 2016 Asia Global Marketplace Mitra buys Inpex stakes in gas finds off Vietnam for $14MM PLS springboards from Sojitz Following up on its US$10 million acquisition of Western Australia’s producing sale to new African prospects Stag oil field, Malaysia-based Mitra Energy agreed to buy Japanese E&P firm Inpex’s On the heels of advising Japanese 30% stake in blocks 05-01b and 05-01c offshore Vietnam for $14.3 million cash. The conglomerate Sojitz on its sale of producing Idemitsu-operated blocks lie in ~120-m water depth in the Nam Con Son Basin oil interests offshore Gabon to VAALCO and contain the fully appraised Dai Nguyet and Sao Vang gas and condensate Energy in early August, PLS Energy finds. The discoveries are well-positioned for tie-in to nearby production Advisors continues to take advantage of facilities and the Nam Con Son gas pipeline, to supply gas and electricity demand in accelerating global deal flow to promote southeast Vietnam’s industrial center. assets for clients worldwide. The team is The deal calls for contingent Contingent payments at sanction & first sales may double price to $30MM. preparing to take to market a 1.2% stake payments of $9.8 million at project in InterOil’s signature Elk and Antelope sanction and $5.9 million at first gas sales. It is subject to preemptive rights held by gas discoveries in Papua New Guinea. Idemitsu (35% WI), JX Nippon (35% WI) and state-owned PetroVietnam. Mitra is This opportunity is unique for its scale already active in Vietnam, operating the U Minh and Nam Du gas discoveries (70% and complexity, and for its high profile each) in the Malay Tho Chu Basin. in light of ExxonMobil’s US$2.5 billion “Having secured a solid operating platform at Stag, we now want to build out the acquisition of InterOil currently underway. portfolio with further highly accretive acquisition opportunities in our target areas, Meanwhile, Africa remains a core which will deliver a strong and sustainable business in Asia Pacific,” Mitra executive focus; PLS attended the Africa Small chairman A. Paul Blakeley said. The Stag acquisition from Santos and Quadrant & Marginal Fields Development Energy is expected to close by mid-September. Conference run by Energy & Corporate Africa in London on Aug. 17-18. A Lundin cancels $265MM Malaysian FPSO sale, closes farmout major theme was the Nigerian marginal Malaysian service company M3nergy was unable to secure financing needed for its field divestments as these assets change US$265 million cash acquisition of Lundin Petroleum’s FPSO Bertam, the Swedish hands from international to indigenous producer said in its Q2 earnings report. As a result, the sale has been terminated. On a oil companies. PLS is also handling conference call, CFO Mike Nicholson said there are no plans to begin or packaging advisory assignments in a new sale process for the spread-moored FPSO, which is deployed northern and southern Africa. in 75-m water depth at Lundin’s operated Bertam oil field offshore peninsular Malaysia (75% WI). Bertam came online in April 2015 and generated CFO: With added Edvard Grieg cash ABOUT PLS flow & new funding, FPSO sale unneeded. net production of 8,600 boe/d in Q2. InternationalDeals is published every “This was always going to be a short term liquidity injection—the FPSO deal. ... Since three weeks by PLS Inc. then we’ve done the Edvard Grieg transaction, we’ve secured a further $0.5 billion in long- PLS InternationalDeals covers the active term funding commitments, so from a liquidity perspective there’s absolutely no requirement global asset marketplace with mergers, to restart the process,” Nicholson said. During Q2 Lundin closed its all-stock acquisition of divestitures, transaction, analyst comments, Statoil’s 15% WI in Norway’s Edvard Grieg oil field, adding immediate cash flow. deals in play and deal metrics. Lundin also completed the last part of its Malaysian farmout to Dyas, transferring To obtain additional PLS product details, 15% WI in Block PM328 off Peninsular Malaysia to the Dutch oil and gas firm and drill www.plsx.com/publications.
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