Pat Hinds’ Post

Chevron wants to sell its remaining oil and gas holdings in the British North Sea Chevron has announced its intention to initiate the sale of its remaining oil and gas holdings in the UK North Sea, a move that signifies the company’s departure from the mature region after over half a century. The divestiture, which was confirmed to Reuters on Thursday, is part of Chevron’s strategy as it gears up for the massive $53 billion takeover of its competitor Hess. This acquisition plan includes a global asset sale projected to be between $10 billion and $15 billion. https://lnkd.in/d7ZeTqp8 This withdrawal represents a broader trend of major oil and gas firms gradually exiting the British North Sea—a region that was at the forefront of deepwater exploration in the 1970s—in favor of investing in newer, global assets. Among Chevron’s assets is a 19.4% interest in the Clair oilfield, operated by BP in the West of Shetland area. Clair is the largest oilfield in the British North Sea, boasting a daily production rate of 120,000 barrels. BP is considering a third phase of development for the Clair field, dubbed Clair South, which stands as one of the North Sea’s most significant untapped reserves. The UK’s oil and gas output has seen a decline from its late 1990s peak of approximately 4.5 million barrels of oil equivalent per day to about 1.2 million barrels in 2023. Additionally, Chevron is looking to divest its minor stakes in the Sullom Voe oil terminal and its shares in the Ninian and SIRGE pipeline systems, both connected to the terminal, as stated in a press release. Chevron’s planned acquisition of Hess has encountered obstacles due to a legal dispute with Exxon over assets in Guyana, despite Chevron’s announcement to sell up to $15 billion in assets. The company said that the decision to sell its North Sea assets is not influenced by the British government’s imposition of a 35% windfall tax on North Sea operators following the 2022 energy price hike. Chevron emphasized its commitment to capital discipline across both traditional and new energy sectors, regularly evaluating its global portfolio to determine the strategic value and competitiveness of its assets for future investment. Picture credit: Reuters #oilandgas #chevron #northsea #uk #bp #climatecrisis #hess

Chevron wants to sell its remaining oil and gas holdings in the British North Sea Chevron has announced its intention to initiate the sale of its remaining oil and gas holdings in the UK North Sea, a move that signifies the company’s departure from the mature region after over half a century. The divestiture, which was confirmed to Reuters on Thursday, is part of Chevron’s strategy as it gears up for the massive $53 billion takeover of its competitor Hess. This acquisition plan includes a global asset sale projected to be between $10 billion and $15 billion. https://lnkd.in/dM4FeiKY This withdrawal represents a broader trend of major oil and gas firms gradually exiting the British North Sea—a region that was at the forefront of deepwater exploration in the 1970s—in favor of investing in newer, global assets. Among Chevron’s assets is a 19.4% interest in the Clair oilfield, operated by BP in the West of Shetland area. Clair is the largest oilfield in the British North Sea, boasting a daily production rate of 120,000 barrels. BP is considering a third phase of development for the Clair field, dubbed Clair South, which stands as one of the North Sea’s most significant untapped reserves. The UK’s oil and gas output has seen a decline from its late 1990s peak of approximately 4.5 million barrels of oil equivalent per day to about 1.2 million barrels in 2023. Additionally, Chevron is looking to divest its minor stakes in the Sullom Voe oil terminal and its shares in the Ninian and SIRGE pipeline systems, both connected to the terminal, as stated in a press release. Chevron’s planned acquisition of Hess has encountered obstacles due to a legal dispute with Exxon over assets in Guyana, despite Chevron’s announcement to sell up to $15 billion in assets. The company said that the decision to sell its North Sea assets is not influenced by the British government’s imposition of a 35% windfall tax on North Sea operators following the 2022 energy price hike. Chevron emphasized its commitment to capital discipline across both traditional and new energy sectors, regularly evaluating its global portfolio to determine the strategic value and competitiveness of its assets for future investment. Picture credit: Reuters #oilandgas #chevron #northsea #uk #bp #climatecrisis #hess

Chevron and TG Natural Resources Look to Make a Haynesville Deal Houston-based TG Natural Resources LLC (TGNR) isn’t that shy kid in the back of a classroom scratching his head. Not when opportunities arise to expand its Haynesville position—a steady work in progress since 2020. That’s the year Japan’s Tokyo Gas bought a controlling stake in now Castleton Commodities International for $620 million in its first acquisition of a shale gas operator. Assets included 222,400 net acres and 295 MMCFD in the Haynesville and Cotton Valley. Tokyo Gas, the largest utility company in Japan, now owns 93% of TGNR and has made no bones about its pure-play ambitions in the nation’s third-largest natural gas field. These, in the name of savvy acquisitions with LNG destinations. Reese Energy Consulting today is following the latest from the Haynesville, where Chevron last November dangled a carrot to sell 70,000 mostly undeveloped acres in Panola County, Texas, following its $53 billion pick up of Hess Corporation. Tick, tick, tick on that sale for nearly a year as gas prices ate dirt and Chevron paused drilling there. Still, there were watchers in Panola County. Those with their own strategies to produce gas to feed Gulf Coast LNG facilities. One of them was TGNR. Chevron is now reportedly in talks with TGNR in what could be a $1 billion deal for its Panola County, Texas, assets. And what a dandy to be had for TG, the largest gas producer in Panola, reporting 123.6 MMCFD as of July. A Chevron deal would mark TGNR’s second Haynesville acquisition inside a year. The company last December gobbled up ROCKCLIFF ENERGY  for $2.7 billion, which added 270,000 acres in the Haynesville and nearly quadrupled its production with 1.3 BCFD. As far as more acquisition here, you can bet TGNR will be watching. What do you think? Learn more about REC and our natural gas and LNG consulting services at https://lnkd.in/ebXT2mS. For more information about our latest online natural gas training courses, visit us at https://lnkd.in/g_jDyx_Y. #energy #naturalgas #acquisitions #Haynesville #reeseenergyconsulting

The energy sector has witnessed a surge in merger and acquisition (M&A) activity, particularly within the oil and gas industry. The acquisition of Pioneer by Exxon and the Chevron-Hess deal have together reshaped the industry landscape, making oil and gas a rare bright spot for Wall Street’s dealmakers. This boom in M&A activity has seen a 52% increase year-to-date, amounting to over $260 billion in transactions. In contrast, most other industries have experienced a 21% drop in M&A activity during the same period, according to Refinitiv. #M&A #energy #oil&gas

𝙀𝙭𝙭𝙤𝙣 𝙖𝙣𝙙 𝘾𝙝𝙚𝙫𝙧𝙤𝙣 𝙋𝙧𝙤𝙥𝙚𝙡 𝙂𝙧𝙤𝙬𝙩𝙝 𝙬𝙞𝙩𝙝 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙞𝙘 𝘼𝙘𝙦𝙪𝙞𝙨𝙞𝙩𝙞𝙤𝙣𝙨 𝙖𝙣𝙙 𝙄𝙣𝙘𝙧𝙚𝙖𝙨𝙚𝙙 𝙋𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙤𝙣 ExxonMobil and Chevron, two of the largest U.S. oil companies, are witnessing significant growth in crude production, particularly from the #PermianBasin and #Guyana, two of the world's most productive oil fields. This surge is underpinned by their strategic investments exceeding $100 billion in acquisitions. Exxon's first-quarter production in Guyana saw a remarkable 70% increase, contributing significantly to global demand. Simultaneously, both companies anticipate a 10% increase in Permian production this year. Exxon is poised to become the largest producer in the Permian following its $64 billion acquisition of Pioneer Natural Resources, while Chevron is expanding its stake in Guyana's Stabroek Block with a $52 billion investment in Hess Corporation. This aggressive expansion positions them ahead of European competitors and underscores their commitment to bolstering oil and gas production amid global supply concerns. Despite shifting market dynamics and increased interest in renewable energy, Exxon and Chevron remain focused on fossil fuels. They leverage their robust positions in low-cost, high-yield regions to ensure profitable production and meet rising energy demands. https://lnkd.in/gGNm-3Pz

The federal auction of offshore petroleum leases in the Gulf of Mexico netted $1.7 billion in winning bids, marking a robust return for the drilling industry. Major players like Shell and BP led the charge, signaling confidence in meeting heightened safety standards post-Deepwater Horizon. 🌊🛢️ 📝 Highlights: Total Bids: $1.7 billion from 454 tracts. Top Bidders: Shell with $406.6M and BP with $239.5M in high bids. Notable Leases: Statoil's $157M bid in the Mississippi Canyon. Industry Confidence: Reflects readiness to comply with new safety regulations. As a dedicated C-store broker, I update you on significant industry developments and market trends. 📊 #oilandgasindustry #energymarket #IndustryNews #shells #BP Stay informed on the latest moves in the energy sector! 🌍🏪

Permian Basin Power: #OXY Seeks Buyers for #DelawareAssets, #PermianResources and #ContinentalResources In 2023, the U.S. oil and gas sector saw M&A hit $192 billion, with many of these deals happening in the #Permian Basin.  Recently, the Permian has seen significant acquisitions: Exxon Mobil purchased Pioneer Natural Resources for about $60 billion. Diamondback Energy's $26 billion deal to acquire Endeavor Energy Resources is currently on hold due to requests from the U.S. Federal Trade Commission. Occidental’s acquisition of CrownRock for $12 billion in the Midland. E&Ps like Permian Resources, Civitas Resources, Ovintiv Inc., Vital Energy, and Matador Resources expanded their Permian operations through mergers and acquisitions last year. Read more here: https://lnkd.in/dTpqUeKG Rextag's Energy DataLink: One app to meet your energy research needs Try it for FREE: https://lnkd.in/dyfASCYi

🌊 WoodsideEnergy has commenced its US$7.2 billion Trion oil and gas project in the #GulfofMexico, celebrating the start of steel fabrication for the floating production unit (FPU). 👉 https://lnkd.in/dBG6pdty Woodside CEO Meg O'Neil described the steel-cutting ceremony as “an exciting moment” for the project team. It marks the beginning of a multi-year construction effort, with the first oil targeted for 2028. The Trion field, discovered in 2012 at a water depth of 2,500 metres, is jointly owned by Woodside (60% operator) and PEMEX Exploration & Production Mexico (40%). Originally advanced through a 2017 agreement between PEMEX and BHP Petroleum, the project transitioned to Woodside following its merger with BHP Petroleum. #EnergyDevelopment #TrionProject #GulfOfMexico #WoodsideEnergy #PEMEX #InnovationInEnergy

🤝Acquisition of 45% Working Interest in Enhanced Oil Recovery Project, Oklahoma 🇺🇸 Full announcement here: 👉 https://bit.ly/3KC0xF6 Union Jack Oil plc (AIM: $UJO,OTCQB: $UJOGF), a 🇬🇧 and 🇺🇸 focused onshore hydrocarbon production, development and exploration company, is pleased to announce the acquisition of a 45% working interest in the Rogers Enhanced Oil Recovery Project and associated leases located in Seminole County, #Oklahoma from Reach Oil & Gas Company Inc. Key details: 🛢️ Acquisition of a 45% WI in the Rogers Project containing two production wells (Rogers and S&M) and one injector well (Coker) 🛢️ Transaction structured to provide Union Jack with a comparable WI to neighbouring West Bowlegs area of interest, including the producing Andrews 1-17 well 🛢️ Union Jack to pay $105,000 cash consideration for its 45% WI, with no promote or back-costs payable 🛢️ Rogers Project activity scheduled to commence July 2024 🛢️ Budgeted Rogers Project capex of ~$133,000 (net to Union Jack) to occur through the remainder of the current financial year 🛢️ The acquisition and all capex will be paid from Union Jack’s existing cash resources 🛢️ The Operator’s base case scenario indicates that up to a further 124,000 barrels of oil (gross) can be recovered from the Rogers and S&M wells in aggregate ⚖️ Project economics are highly attractive and indicate future gross revenues at prevailing oil prices of $7.5 million (gross), an IRR approaching 80% and a c.18 month payback period post-CAPEX. 📢 David Bramhill, Executive Chairman, commented: “I am delighted to announce Union Jack’s further expansion in Oklahoma, alongside our partner Reach, with our acquisition of a 45% WI in the Rogers Project. “Noting the low capital cost associated with this new venture, we see strong potential for incremental production gains and timely payback on our investment..." #oil #production #development #UJO

🌐 ExxonMobil acquires Pioneer Natural Resources in a $59.6 billion all-stock deal, creating the largest oil producer in the Permian Basin. 🛢 The acquisition grants Exxon access to Pioneer's 1.4 million acres in the Delaware and Midland basins, with an estimated potential of 16 billion barrels of unrefined oil. 📈 The deal aims to transform Exxon's upstream portfolio, increase low-cost supply production, and introduce short-cycle capital flexibility, while betting on the long-term sustenance of the traditional fossil fuels industry. ❗ Share your thoughts in the comments and click the link below for the full report. 🚨 Sign up to our Exclusive Weekly Newsletter here: http://eepurl.com/ic1Kyv by Rui Ren Lee, Ardia Daniswara, Varun V., @Wei Kai Lim (KCL) & Mikołaj Borowiak, Argyro Charizona, Angelo Passaro, Rares Ionescu, Ruben van der Lubbe, Muhammad Adnan (Bocconi) #MergerSight #ExxonMobil #PioneerNaturalResources #PermianBasin #OilAndGas