Riverbend Energy looking to divest $2bn in US oil and gas assets 

Investment firm Riverbend Energy Group is considering the sale of oil and gas assets, worth approximately $2bn, to capitalise on surging commodity prices, Reuters reported, citing people familiar with the matter. 

Comprising minority stakes in individual oil and gas wells, the three portfolios include Riverbend VI, Riverbend VI-B and Riverbend VIII.

As part of the divestment plan, the firm is working with an undisclosed investment bank on the auction process for the assets in recent weeks, according to the sources. 

The firm is seeking interest from potential buyers for three of its oil and gas assets, including debt, and expects to attract interest from other financial investors that are seeking cash generated by oil and gas assets. 

Established in 2016, Riverbend VI is focused on acquisition and development assets in the Williston shale play of North Dakota, and the Ohio portion of the Utica shale. 

Riverbend VI owns a non-operated portfolio of nearly 150,000 net acres. It has a current net production of approximately 28,000 barrels of oil equivalent per day. 

Engaged in acquisition and development of natural gas weighted basins in the US, Riverbend VIII holds a portfolio of non-operated stakes in the Fayetteville and Haynesville assets. It has current net production of 115 million cubic feet of gas equivalent per day. 

Canada in talks with Repsol and Pieridae to boost gas exports to Europe 

The Canadian Government is in talks with Repsol and Pieridae Energy to accelerate the development of LNG export terminals to help increase gas supplies to Europe, reported Reuters, citing the country’s Natural Resources Minister Jonathan Wilkinson. 

Spanish company Repsol is planning to build an LNG facility in New Brunswick, while Pieridae Energy proposed the Goldboro LNG facility in Nova Scotia.

Pieridae’s proposed project will see the construction of a 2.4 megatonne per annum floating export facility. 

Following Russia’s invasion of Ukraine, Canada and European countries have held talks over ways to boost energy exports to Europe. Canada currently only has only one LNG facility on its west coast, which is under construction. 

Pieridae spokesman James Millar confirmed that the company held discussions with the Canadian Government over the proposed LNG export facility. 

Repsol currently operates an LNG import facility in Saint John. It acquired a 100% stake in the project last year. Wilkinson said that the two proposed LNG export projects would “almost certainly” have to make use of renewable electricity in their liquefaction process to proceed. 

Wilkinson said in an interview: “We are looking at Goldboro and Repsol’s projects and discussing these with the proponents and with German and European counterparts."

India calls on state firms to consider acquiring stakes in Russian assets 

The Indian Government has urged state-run energy companies to consider acquiring a stake in sanctions-hit Russian firm Rosneft, reported Reuters, citing two people familiar with the matter. 

The state has recommended the companies assess the possibility of buying the stake from European oil major BP, which is planning to sell its 19.75% interest in the Russian firm.

The ministry urged Oil and Natural Gas Corp’s overseas investment division OVL to explore purchasing a 30% stake in the Sakhalin 1 project, in Russia’s Far East, from ExxonMobil.

OVL currently owns a 20% stake in the Sakhalin 1 project, which is operated by ExxonMobil.

One of the sources said the stakes in the Russian assets would be divested to Indian energy companies at discounted rates, owing to the risk involved with the assets. 

A source said: “The fear is that this investment could get stuck in Russia as sanctions might bar us from bringing equity oil and gas to India.” 

Keppel agrees to merge O&M unit with Sembcorp Marine 

Singapore-based Keppel has agreed to merge its offshore rig building business Keppel Offshore & Marine (Keppel O&M) with Sembcorp Marine. 

The deal comes a year after the two firms started talks regarding a possible merger to cope with downturn in the industry due volatility in oil prices and a reduced number of new orders, reported Reuters.

The latest agreement will result in the creation of a new entity that will focus on offshore renewables, new energy and cleaner solutions in the offshore and marine sector. 

Upon the completion of the deal, Keppel O&M and Sembcorp will be wholly-owned by a new holding entity.

Keppel will also receive $362.4m (S$500m) from Keppel O&M prior to the closing of the deal.

Keppel CEO Loh Chin Hua said: “The proposed transactions are in line with Keppel’s Vision 2030 plans to be more focused and disciplined, and simplify our business, as we execute our mission to provide solutions for sustainable urbanisation.” 

PetroReconcavo and Eneva offer $1.4bn for Petrobras’ Bahia-Terra cluster 

Petrobras has received a joint bid, worth more than $1.4bn, for the Bahia-Terra cluster from Brazilian energy companies PetroReconcavo and Eneva. 

The Bahia Terra cluster includes 28 onshore production concessions in the state of Bahia. It also includes access to logistics, processing, storage, transportation and outflow infrastructure for oil and natural gas. 

In early 2021, the cluster’s average production rate stood at approximately 13,500 barrels of oil per day and 660,000 cubic metres per day of gas. 

The cluster comprises collection and treatment stations, oil storage and transportation parks, gas and oil pipelines and natural gas processing unit Catu, along with other infrastructure associated with the production process. 

Petrobras has confirmed that it has invited PetroReconcavo and Eneva to the negotiation phase. PetroReconvaco holds a 60% stake in the bid, while the remaining 40% stake is owned by Eneva.

If the talks materialise, PetroReconvaco would operate the Bahia Terra cluster. 

The deal is subject to Petrobras agreeing to the offer and regulatory clearances. 

In November 2021, Petrobras unveiled plans to invest $68bn from 2022 to 2026 to increase its crude oil production in the subsea pre-salt area. Of the total planned investment, Petrobras intends to allocate 84% to oil and gas exploration and production, with a focus on assets in deep and ultradeep waters. 

ExxonMobil to divest Romanian upstream unit for more than $1bn 

ExxonMobil has signed a deal with Romgaz to sell its Romanian upstream unit, ExxonMobil Exploration and Production Romania, for more than $1bn. 

The sale comes as the US oil major intends to focus its investment on advantaged assets with a low supply cost.

Under the terms of the deal, Romgaz will purchase all the shares in ExxonMobil’s Romanian upstream unit together with a stake in the XIX Neptun Block offshore Romania. 

Subject to approvals from the Romanian Government, the transaction is slated to close in the second quarter of the year.

Upon the completion of the deal, the XIX Neptun Block’s operatorship will be transferred to its other titleholder, OMV Petrom. 

Romanian Prime Minister Nicolae-Ionel Ciucă said: “The [Romgaz-ExxonMobil] transaction worth over $1bn is the expression of the government’s commitment to support vital investments in energy and the exploitation of natural gas in the Black Sea for the benefit of Romanians and the Romanian economy.”