06/26 Weekly oil & gas update

EQT plans to acquire Rice Energy in USD6.7-billion deal

Pennsylvania-based EQT has announced that it plans to purchase Rice Energy, another PA-based oil producer focusing in the Appalachian area, for USD6.7 billion. The merged company will be the largest natural gas producer in the United States with more than 1.5 million acres of the Marcellus and Utica shale assets

Eni and Total move to return to Iran

Eni has signed a Memorandum of Understanding with the National Iranian Oil Company to perform feasibility studies on the Darkhovin oil field and Kish gas field. Meanwhile, Total’s CEO announced that the company plans to return to Phase 11 of the South Pars project with an initial USD1-billion investment

Mexico auctions 10 shallow-water blocks

Last week, Mexico auctioned 10 out of 15 shallow-water oil and gas blocks in the southern Gulf of Mexico to winners including Total, Shell, Eni, Repsol, Ecopetrol, Lukoil, Citla, Pemex, and Sierra Perote either independently or as part of a consortium. Block development could eventually reach USD8.2 billion in investments and 170,000 boe/d in production

Occidental plans to purchase assets and divest non-core assets in the Permian

Occidental Petroleum will take over four enhanced oil recovery projects in the Permian Basin from Hess for USD600 million. In a separate deal, it will sell 13,000 acres of non-strategic assets in the Permian to generate proceeds of around USD600 million

European Petroleum Refiners Association appoints new president

Members of the European Petroleum Refiners Association have appointed Dr. Béla Kelemen as President for the next two-year term. The Brussels-based association represents the interests of nearly all EU refiners and actively contributes to the development of EU policies

Venezuela looks abroad for fuel as domestic production wanes

Venezuela, home to the largest oil reserves in the world, is seeking to import 13 million barrels of fuel this year as the country’s refineries are now operating at less than half of their capacity

Centrica closes UK’s main storage site under the North Sea

Within the next 4 to 5 years, Britain’s Centrica will permanently close the Rough gas storage facility mostly due to technical reasons. Located off the Yorkshire coast, the site has accounted for 70% of the UK’s total storage capacity and around 7% of the UK’s 2016 consumption

Golar and Delfin enter agreement to develop first US FLNG unit

Delfin Midstream and Golar LNG signed a Joint Development Agreement which facilitates the financing, marketing, construction, development, and operation of Delfin LNG — the first and only permitted FLNG project in the US. FID on the project is expected to take place in 2018

EnerNOC enters an agreement to be acquired by Enel for USD300 million

EnerNOC, the provider of demand response services and smart energy software, has entered into an agreement with the Italian Enel Group to be acquired for USD300 million. The move supports Enel’s strategic plan to 2019, which focuses on customer solutions and demand response services

Average weekly oil & gas prices

Brent (USD/bbl): 45.70 (-1.96)
WTI (USD/bbl): 43.14 (-2.15)
Henry Hub (USD/mmbtu): 2.90 ▼(-0.10)
TTF (USD/mmbtu): 4.82 (0.00)

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