20 July 2010
BP Signs North America
and Egypt Asset Deals with Apache
BP announced today that it has entered into several agreements to sell upstream assets in the United States, Canada and Egypt to Apache Corporation. The deals, together worth a total of $7 billion, comprise BP's Permian Basin assets in Texas and south-east New Mexico, US; its Western Canadian upstream gas assets; and the Western Desert business concessions and East Badr El-din exploration concession in Egypt.
The decision to make
these divestments follows the announcement made by BP last month
that it was increasing its target for divestments to $10
proceeds of the sales will be used by BP to increase the cash
available to the group.
BP Chairman, Carl-Henric Svanberg, said: "Over the last two months the Board has considered BP's options for generating the cash necessary to meet the obligations likely to arise from the Gulf of Mexico oil spill. BP has an extremely strong asset base which is diversified geographically as well as by asset class. The Board believes that there are opportunities to divest assets which are strategically more valuable to other parties than they are to BP. Today's announcement is the first such transaction and meets the value and strategic criteria of both parties."
BP group chief executive Tony Hayward said: "We have achieved an excellent price for a set of properties that are worth more to others than to BP. This is a good first step which underlines our ability and determination to get maximum value for everything we sell."
"This transaction provides a sustainable growth platform for Apache's onshore North America operations as well as strategic infrastructure and exploration potential in Egypt," said G. Steven Farris, Apache's chairman and chief executive officer. "We appreciate the opportunity and the professional manner in which BP employees conducted themselves. Their cooperation was a key ingredient for this transaction to come together."
The aggregate proceeds for the deals is $7 billion, subject to customary post-completion price adjustments, such proceeds to be paid in cash. Each sale will take place through a separate agreement between BP and Apache, and none of the sales will be conditional on completion of any of the other sales occurring. Although each of the transactions is subject to certain regulatory approvals (as described in more detail below), it is expected that they will all be completed during the third quarter of 2010.
Apache is due to pay BP a cash deposit of $5 billion in aggregate on 30 July 2010. The deposit is split $3.25bn for Canada, $1.5bn for Permian and $0.25bn for Egypt. For the sale of the Western Canadian upstream gas assets, the relevant BP selling entity shall issue a convertible debenture in favour of Apache in an amount equivalent to the sale price for such assets. The debenture will automatically exchange for the assets that are sold to Apache on closing of the transaction.
For each sale, in the event that any third party exercises any pre-emption rights over any asset being sold, the relevant price payable by Apache will be correspondingly reduced to take into account that it will not acquire such asset and the proceeds for the sale of such asset will instead be received by BP from the third party. For the sale of the Western Canadian gas assets, any such pre-emption exercise will adjust the amount of the convertible debenture accordingly and require a corresponding portion of the $3.25bn deposit to be repaid to Apache.
For each sale, in the event that the necessary regulatory approvals are not obtained by a certain date (for the Permian Basin assets sale this is 29 October 2010; for the Western Canadian gas asset sale this is 31 January 2011; and for the Egyptian asset sale this is 19 July 2011), BP will be required to repay the relevant deposit to Apache or, in the case of the Western Canadian gas asset sale, the convertible debenture. BP plc. has guaranteed such repayment obligations.
The aggregate replacement cost profit (before interest and taxation) attributable to the assets to be sold in these deals for the year ended 31 December 2009 was US$166 million. The aggregate value of the gross assets (net of accumulated depreciation) to be sold in these deals as at 30 June 2010 was US $3,085 million (with a net book value of tangible and intangible assets included in this number as of this date of US$ 2,998 million).
Sale of Permian Basin assets in Texas and south-east New Mexico
The total consideration payable for the Permian basin assets is US$3.10 billion, subject to customary post-completion price adjustments.
The ten Permian Basin fields are: Block 31, Empire/Yeso, SELea, Brown Bassett, Block16/Coy Waha, Spraberry, Wilshire, North Misc, Pegasus, Delaware Penn in Texas and south-east New Mexico. Included in the sale of such interests are the two BP-operated gas processing plants at Block 31 and Crane and non-operated interests in the Terrell gas processing facility. Net production from these assets are approximately 15,100 barrels of liquids per day and 80 million cubic feet of gas per day. Approximately 126 million barrels of oil equivalent of net proved reserves and 148 million barrels of oil equivalent of net resources are associated with these assets.
Sale of Western Canadian upstream gas assets 、〔油田開発の〕探査段階の
The total consideration payable for the Western Canadian gas assets is US$3.25 billion, subject to customary post-completion price adjustments. Approximately 214 million barrels oil equivalent of net proved reserves and 1,368 million barrels oil equivalent of net resources are associated with these assets.
The upstream Western Canadian gas business has net production of 240 million cu ft of gas per day and 6,500 barrels of liquids per day. The producing assets that are included, both operated and non operated, are managed by the following Operating Areas: Noel, Ojay, Chinchaga, Wapiti, Fox Creek, Edson, Marten Hills, South West and St. Lina. Also included is the proposed Mist Mountain coal bed methane project.
Sale of Western Desert business concessions and East Badr El-din exploration concession in Egypt
The total consideration payable for the Western Desert business concessions and East Badr El-din exploration concession is US$0.65 billion, subject to customary post-completion price adjustments.
In Egypt, the net
production of the assets being sold is approximately 6,016
barrels of oil per day and 11 million cubic feet of gas per day.
Approximately 20 million barrels of oil equivalent of net proved
reserves and 55 million barrels of oil equivalent of net
resources are associated with these assets. The sale includes the
East Badr El-din concession where BP has an exploration licence
with a 100 per cent interest and BP's interests in the Western
Desert business concessions.
The effective date for each of the transactions is 1 July 2010. Various governmental and regulatory consents are required for each of the transactions to complete. The sale of the Permian Basin assets in Texas and south-east New Mexico will require antitrust clearance under the Hart-Scott-Rodino Act. The consents required for the sale of the Western Canadian gas assets include Canadian antitrust approval as well as consent under the Investment Canada Act and National Energy Board approval. The sale of the Western Desert business concessions and East Badr El-din exploration concession are subject to approvals from the Egyptian General Petroleum Corporation and Egypt's Ministry of Petroleum.
Completion of each of the sales is also subject to customary closing conditions, including that there have been no breaches of the representations and warranties given by BP for such sale that would at closing of such sale constitute a material adverse effect on the ownership, operations or value of the relevant assets.
Note to editors
* BP's commitments to its Gulf of Mexico activities have resulted in a number of changes to the Group's financial plans. These include suspension of 1st, 2nd and 3rd quarter 2010 interim dividends in 2010, a significant reduction in capital expenditure as well as acceleration in its divestment programme, focusing mainly on non-core upstream assets.
* The Permian Basin assets came into BP's North America Gas business in 2000 as part of the ARCO acquisition.
* Not included in any of these sales are BP's Canadian interests in the following: Kirby and Leismer gas fields; natural gas liquids (NGLs); Arctic exploration and Mackenzie Delta assets; oil sands (Sunrise, Terre de Grace, Kirby); St Lina heavy oil and the North America Gas trading business.
* BP has been in the Western Desert, Egypt, since the early 1970s. The current concession terms for the Western Desert were renegotiated in 2005. Under the revised terms, the concession expires in 2024 (with an option for the contractor to extend it for five additional years). The concession includes the use of the Dashour LPG plant as well as the related gas pipelines.
* Standard Chartered acted as BP's advisers.
Apache Corporation is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids.
We have exploration and production operations in six countries, comprising seven regions: the Gulf Coast and Central regions in the United States, Canada, Egypt, the North Sea, Australia and Argentina. We have exploration interests in Chile located adjacent to our Argentine operations in Tierra del Fuego. We have achieved a critical mass in each of our producing regions that support sustainable, lower-risk, repeatable drilling opportunities. This enables us to pursue higher-risk, higher-reward exploration primarily in our international regions, particularly our growth areas of Australia, Canada and Egypt. Our acreage positions, which include 39 million gross acres across the globe, also bring ample growth opportunities.
Apache’s Central Region spans the Permian Basin of West Texas and New Mexico, the Anadarko Basin in western Oklahoma and the Texas Panhandle, and East Texas.
７月19日（ブルームバーグ）：英石油会社ＢＰが米同業のアパッチに米アラスカ州プルドー湾の油田権益の半分を売却する交渉が、先週末、２回にわた り行き詰まったことが分かった。関係者によると、ＢＰとアパッチの交渉は16日夜に行き詰まった。17日に再開されたものの、資産価値の評価や現在および将来に法的責任を問われた 場合の対応などをめぐり、18日朝に交渉は再び暗礁に乗り上げたという。
Apache Gains Strategic Position in Deepwater Gulf With Mariner Merger
HOUSTON, April 15, 2010 /PRNewswire via COMTEX News Network/ -- Apache Corporation (NYSE, Nasdaq: APA) and Mariner Energy (NYSE: ME) today announced that they have entered into a merger agreement that will combine Apache's global reach and resources with Mariner's track record of successful deepwater exploration and its resource potential.
"This is a strategic step and a natural extension into the deepwater Gulf for Apache," said G. Steven Farris, Apache's chairman and chief executive officer. "Mariner provides an exciting new platform for growth in the deepwater and complements our strengths in the Gulf Shelf and the Permian Basin. Based on our experience working with the Mariner team, we also believe the two companies will make an excellent cultural fit."
"The combination with Apache is an excellent outcome for Mariner's stakeholders. Our shareholders will be rewarded for their faith and support in our company with the opportunity to further benefit from the upside provided from the merger. Our partners will work with a world-class company with the financial and technical resources to fully exploit our assets. Our employees will benefit from the opportunities provided in a large company with values similar to Mariner's," said Scott D. Josey, Mariner's chairman, chief executive officer and president.
Under the agreement, Mariner shareholders will receive, in aggregate, 0.17043 of a share of Apache common stock and $7.80 in cash for each outstanding share of Mariner's common stock, subject to an election feature and proration. At Apache's closing stock price of $108.06 on April 14, 2010, the transaction values Mariner's shares at $26.22 per share or approximately $2.7 billion. Apache also will assume $1.2 billion in debt.
OKLAHOMA CITY, June 10, 2010 /PRNewswire via COMTEX/ --Devon Energy Corporation (NYSE: DVN) today announced that it has completed the previously announced sale of its Gulf of Mexico shelf assets to Apache Corporation for $1.05 billion, or approximately $840 million after tax. The agreement covers Devon's interests in approximately 150 blocks located offshore Texas, Louisiana and Alabama. The effective date of the sale was January 1, 2010.
"This transaction, coupled with the recent close of the sale of our deepwater assets, essentially completes Devon's exit from the Gulf of Mexico," said John Richels, Devon's president and chief executive officer.
On November 16, 2009, Devon announced plans to divest its Gulf of Mexico and international assets to allow the company to focus on its world-class North American onshore assets.
Devon Energy Completes Sale of Panyu Field in China 南シナ番禺油田
OKLAHOMA CITY, June 18, 2010 /PRNewswire via COMTEX/ --Devon Energy Corporation (NYSE: DVN) today announced that it has completed the sale of its Panyu field located offshore China to China National Offshore Oil Corporation for $515 million, or approximately $370 million after tax. During 2009, Devon's production from the Panyu field was approximately 12 thousand barrels of oil per day.
Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is a leading U.S.-based independent oil and gas producer and is included in the S&P 500 Index.
Devon Energy Announces $7.0 Billion of Property Sales and Oil Sands Joint Venture
OKLAHOMA CITY, March 11, 2010 /PRNewswire via COMTEX/ -- Devon Energy Corporation (NYSE: DVN) today announced that it has entered into agreements to sell all of its assets in the deepwater Gulf of Mexico, Brazil and Azerbaijan to BP for $7.0 billion. In addition, BP will assume Devon's leases of the Seadrill West Sirius and Transocean Deepwater Discovery drilling rigs for the duration of the contract terms. The company also announced that Devon and BP will form a heavy oil joint venture to develop BP's Kirby oil sands leases in Alberta, Canada.
"These sales, combined with our previously announced divestitures of $1.3 billion of deepwater Gulf of Mexico assets, put Devon well on the way to completing its strategic repositioning," said Larry Nichols, Devon's chairman and chief executive officer. "Given any reasonable sales price for Devon's remaining divestiture assets, the transactions to date suggest that our total after-tax proceeds for the entire divestiture program will exceed our previously announced range of $4.5 to $7.5 billion."
HOUSTON, June 10, 2010 Apache Corporation said today that it has completed its previously announced acquisition of Devon Energy Corporation's oil and gas assets in the shallow waters of the Gulf of Mexico Shelf for $1.05 billion. Apache estimated net proved and probable reserves of 83 million barrels of oil equivalent at year-end 2009.
The properties are projected to produce 9,500 barrels of liquid hydrocarbons and 55 million cubic feet of gas per day (net) after closing - the same balance of liquids and natural gas in Apache's current worldwide production. About half of the estimated proved reserves of 41 million barrels equivalent are oil and natural gas liquids.
The acquired assets comprise 477,000 net acres across approximately 150 blocks. Virtually all of the production is located in fields in waters less than 500 feet deep.
Seven major field areas hold 90 percent of the proved reserves. Apache will operate 75 percent of the production. Based on initial evaluation, Apache has identified 79 recompletion opportunities and 26 drilling prospects across the acquired assets.
Additional information about this transaction is posted on Apache's Web site, www.apachecorp.com, along with other announcements, updates, investor information and copies of all press releases.
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina.
［ロンドン/ニューヨーク 11日 ロイター］ 英石油メジャーのBPは11日、米デボン・エナジーから、ブラジル、アゼルバイジャン、およびメキシコ湾の石油資産を総額70億ドルで買収すると発表した。
July 19 2010
BP Signs Agreement with the Egyptian Ministry of Petroleum and the Egyptian General Petroleum Corporation to Amend the North Alexandria and West Mediterranean Deepwater Concessions
BP has announced that it
has signed a new agreement with the Egyptian Ministry of
Petroleum and the Egyptian General Petroleum Corporation to
develop the significant hydrocarbon resources in the North
Alexandria and West Mediterranean Deepwater concessions.
Production from the West Nile Delta development is projected to reach up to 1 billion cubic feet per day, providing a major new source of gas for the domestic market in Egypt. The first phase will develop an estimated 5 trillion cubic feet of gas and associated condensate through subsea development of five offshore fields into a new purpose-built onshore gas plant on Egypt’s Mediterranean coast. First gas is expected in late 2014. The new agreement amends the commercial terms and the governance structure for the two concessions located in the West Nile Delta, enabling BP and its partner RWE Dea to proceed with development.
“This agreement unlocks a new phase in realizing the huge potential of the Nile Delta basin, which will play an important role in meeting regional energy security needs in the coming decades,” said BP Chief Executive Tony Hayward. “BP and EGPC have a long-standing and successful partnership, and the agreement we signed today takes that to a new level in developing these deepwater resources, as well as creating an important source of future growth for BP.”
Hesham Mekawi, President of BP Egypt, commented: “This is a very important project that is set to unlock a strategic gas resource in the West Nile Delta area, which is significant for Egypt’s energy supply today and the future. The investment in this project, estimated to be $9 billion gross, will reinforce Egypt’s importance as a major source of future oil and gas production.”
The scale of investment and activities of the West Nile Delta Project is expected to create thousands of job opportunities during the different project phases and will significantly contribute to the growth of petroleum-related industries in Egypt.
Note to editors
* BP operates and holds 60% of the North Alexandria concession with RWE Dea holding the remaining 40%
* BP operates and holds 80% of the West Mediterranean Deepwater concession with RWE Dea holding the remaining 20%
* The North Alexandria and West Mediterranean Deepwater concessions are located in the Mediterranean, offshore of the city of Alexandria
* BP Egypt has made a number of discoveries in these concessions including the Giza, Taurus, Libra, Fayoum and Ruby in the Pliocene, and the Raven discovery in the deeper Miocene formations
* BP’s operations in Egypt span almost 50 years
* To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company, BP’s JV Company with the Egyptian General Petroleum Company, has been responsible for the production of almost 40% of Egypt’s entire oil production. BP and its partners are currently producing close to 35% of the domestic gas demand
* BP Egypt has invested more than $17 billion to date, making BP the single largest foreign investor in the country