Encana News

Canadian oil and gas producer Encana has signed a deal to acquire all of the outstanding shares of common stock of Newfield Exploration Company in a USD 4.1 billion deal that will provide the former with significant positions in some of North America’s biggest oilfields.In addition, Encana will assume CAD 2.2 billion of Newfield net debt. The strategic combination will create a leading multi-basin company and has been unanimously approved by the Boards of Directors of both companies.Subject to receipt of regulatory and shareholder approvals by both companies, the transaction is expected to close in the first quarter of 2019.Under the terms of the merger agreement…

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope would create jobs and boost national security, a spokesman for one of the companies and a lobbyist for another one said on Friday. Producers for American Crude Oil Exports, or PACE, is the first lobbying group to form on reversing the ban. "The end game here is legislative repeal of the ban," said a lobbyist for one of the member producers, who did not want to be named because the group was only recently formed. Congress passed the trade restriction in the 1970s after the Arab oil embargo caused fears of domestic oil shortages.

OceanWorks International has been awarded a contract by the Fundy Ocean Research Center for Energy (FORCE) to instrument a cable termination for a ground breaking tidal energy project in the Bay of Fundy. The project includes the design, manufacture and integration of the subsea instrumentation, shore station, and commissioning. FORCE is deploying four power cables to connect prototype instream tidal turbines to a dedicated electrical sub-station. By providing this infrastructure, FORCE is lowering the ‘barrier to entry’ for turbine manufactures to test their equipment in one of the most demanding tidal environments. The planned deployment will take place in Atlantic Canada’s Bay of Fundy, which is renowned for having the highest tidal range in the world.

OceanWorks International contracted by the Fundy Ocean Research Center for Energy (FORCE) to establish project cable termination in the Bay of Fundy, Canada. The project contract includes the design, manufacture and integration of the subsea instrumentation, shore station, and commissioning. FORCE is deploying four power cables to connect prototype in-stream tidal turbines to a dedicated electrical sub-station. By providing this infrastructure, it is lowering the 'barrier to entry' for turbine manufactures to test their equipment in one of the most demanding tidal environments.

Economic growth in Nova Scotia, currently running at 1.6 percent for 2011, looks promising over the next two years, according to the Provincial Monitor report released today by BMO Economics. "We expect growth to accelerate to a 2.5 percent clip by 2013, when the positive impact of the recently announced Federal shipbuilding contract begins to take root," said Robert Kavcic, Economist, BMO Capital Markets. The contract landed by Irving Shipbuilding to build combat ships for the Royal Canadian Navy is worth an estimated $25 billion through 2030. The Conference Board of Canada estimates that about 8,000 new jobs - more than 1 per cent of total employment in the province - will be sustained over that period, and that real GDP will see a boost of about $800 million per year on average.

Expro, an international oilfield service company, announced that it has been awarded a surface testing and subsea landing string service contract from EnCana Corporation for work offshore Halifax, Nova Scotia. The six-month contract will provide support for the construction of four development wells in the Deep Panuke field and includes the provision of surface well test and landing string equipment and related support services. The preparatory work has been completed and the equipment has been delivered to Nova Scotia for deployment to the field once operations commence using the jack-up rig Rowan Gorilla III. A 10K landing string has been custom-designed to facilitate operations from a jack-up rig involving subsea completions.

On Wednesday, 6 May, StatoilHydro received first oil from the Chevron-operated Tahiti field in the US Gulf of Mexico. Tahiti is expected to produce 125,000 barrels of oil and two million cubic metres of natural gas a day, reaching plateau production later this year. With Tahiti on stream, StatoilHydro will more than double its production from the US Gulf of Mexico. StatoilHydro's interest in the Tahiti field was acquired through the EnCana Gulf of Mexico acreage acquisition in 2005, with Tahiti being sanctioned later that year.

Rolls-Royce has won an order to design and equip a UT 755LN offshore support vessel with an integrated power, propulsion and motion control system, for use in the Canadian oil and gas market. Atlantic Towing Limited (Canada) has entered a long term charter with the Canadian oil and gas company EnCana Corporation for the vessel which will be built at the Halifax Shipyard in Nova Scotia. It will operate in the Deep Panuk field off the Canadian east coast. In addition to the ship design, Rolls-Royce will deliver a fully integrated equipment system. This includes diesel engines, propellers, reduction gears, tunnel thrusters, azimuth thrusters, steering gear, rudders, switchboards, automation and controls and deck machinery. The total value of the Rolls-Royce contract is around $10.5m.

Atlantic Towing is the successful bidder for EnCana Corporation’s offshore supply vessel services contract for the Deep Panuke Project. This award includes building a new state-of-the-art offshore supply vessel at the Halifax Shipyard. The building and commissioning of the new vessel will employ over 200 shipyard workers at the peak and provide 426,000 person hours of employment. The new contract will raise total employment levels at the shipyard to over 600 at peak. The building of the new ship will generate an estimated payroll of $20m and will result in about $14m in purchases of goods and services from approximately 50 Nova Scotia suppliers. Atlantic Towing will operate the new vessel on long term contract with EnCana.

Athens Group, an independent consulting company that specializes in software-related risk mitigation and problem remediation for drilling and rig control systems, announced a 66% increase in year-over-year sales during 2008 and a significant increase in booked business for 2009. New customers included Stena Drilling, Ocean Rig, Eni/Saipem, Total Nigeria, Encana, Anadarko and Nexen Energy. Repeat customers included Transocean, BP, Maersk Drilling, Total, Parker Drilling, Ensco, Repsol and Hydril. This customer activity indicates a strong understanding of the benefits of Drilling Technology AssuranceSM Services (DTA). “Drilling contractors and operators are too often forced to take rigs before they are really ready,” said Mike Haney, CEO at Athens Group.

ConocoPhillips approved 2007 cash capital expenditures of approximately $11.8b. Combined with about $0.6b for loans to affiliates and a $0.6 billion contribution to fund the recently announced EnCana transaction, the total cash capital spend is expected to be $13.0 billion. Including capitalized interest of $0.5 billion, the total authorized capital program for 2007 is $13.5 billion. Eighty-four percent of the company’s 2007 total authorized capital program will be allocated to its Exploration and Production segment. The Refining and Marketing segment will receive approximately 13 percent, with the remaining being spent in Emerging Businesses and Corporate. Additional details on the capital program for each of the company’s business segments are provided below.

Several of the world's largest oil companies hope to tap into possible offshore oil and gas reserves as Greenland opened a new round of concessions for exploration licenses in the fragile Arctic region. Eyes of an oil-thirsty world have turned to the shores of the semiautonomous Danish territory amid rising fuel prices, Mideast instability and concerns over future supplies. The Greenland government hopes to make big gains from any reserves found in its icy waters, but environmentalists say oil exploration there could damage a sensitive region already under threat by global warming. The names of companies attending the meeting and what…

Ocean Rig’s second semi-submersible drilling rig, Eirik Raude, left the Irving Shipyard in Halifax this morning local time to commence a four week period of sea trials. The rig will first undergo inclination testing followed by thruster and various system tests. These will be performed in sheltered waters. Eirik Raude will thereafter move offshore for the remainder of the testing program, which will be carried out close to the rig's first drilling location in deep water outside Nova Scotia. Ocean Rig expects that Eirik Raude will complete the sea trials and start operations under the EnCana drilling contract primo October this year.

Rowan Companies announced that its Super Gorilla class jack-up, Gorilla V, will resume drilling for EnCana Corporation under a contract which was suspended in 2002. The rig will be utilized offshore eastern Canada for EnCana's shallow water exploration campaign beginning in early May. The initial commitment is for one well, with options for additional wells. Bob Palmer, Chairman and Chief Executive Officer, commented, "The resumption of this contract reaffirms our confidence in the long-term viability of the eastern Canada market for harsh environment jack-ups. We look forward to continuing our activities with EnCana."