Devon Energy News

A latest research revealed that the upstream sector accounted for the bulk of mergers and acquisitions (M&A) in the global oil and gas industry in 2019, generating some high-value transactions during the process.According to GlobalData's theme report, ‘M&A in Oil and Gas – 2020’, the acquisition of Anadarko Petroleum by Occidental Petroleum in April 2019 for a purchase consideration of US$57bn was the highlight of oil and gas M&A activity last year, says GlobalData, a leading data and analytics company.Ravindra Puranik, Oil & Gas Analyst at GlobalData, said: “In 2019, the upstream sector, more specifically the US shale plays, witnessed the highest deal activity in the oil and gas industry.

Large U.S. shale oil companies, flush with cash raised through stock offerings, are gobbling up properties in the Permian Basin straddling Texas and New Mexico, a trend that could boost U.S. oil output in the second half of 2017. Hess Corp and Devon Energy Corp are among oil and gas companies that tapped the equity market in the first eight months of the year, raising a total $20.40 billion. That is the most since at least 1996, barring 2014 when the energy companies raised $20.46 billion in the first eight months of the year. The industry raised $19.78 billion through stock offerings in all of 2015, according to Reuters data, but almost all of this was used to pay off debt.

NEW YORK, July 5 (Reuters) - Oil prices tumbled nearly 5 percent on Tuesday as investors worried that Britain's exit from the European Union would slow the global economy, making it unlikely energy demand will grow enough to absorb a supply glut. Brexit worries hit Britain's property market and drove the pound to a 31-year low. A flurry of data from China in coming weeks is likely to show weaker trade and investments. Traders also cited data from market intelligence firm Genscape showing a build of 230,025 barrels at the Cushing, Oklahoma storage hub for U.S. crude futures, during the week to July 1. "There are risk-off trades across the board," said David Thompson, executive vice-president at Washington-based commodities broker Powerhouse.

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices pull back after a recent rally to an 11-month high over $51 a barrel. Despite a decline in U.S. crude to below $48 a barrel on Friday after Britain voted to leave the European Union, several companies said recently they plan to boost spending on new drilling with futures for the balance of the year and 2017 topping $50 a barrel. Analysts and producers have said U.S. crude prices over $50 was a key level that would trigger a return to the well pad. Drillers removed seven oil rigs in the week to June 24, bringing the total rig count down to 330, compared with 628 a year ago, Baker Hughes.

The 20 year four-fold growth pattern in the world’s FPSO fleet stalls out in 2016 with a record number of FPSOs idle and available for redeployment – or perhaps to be forced into other uses, lay up or scrap. FPSO redeployments typically are far more complex, costly and risky than for (say) drillships and yet the need for redeploying idle FPSOs is now in the forefront of the industry like never before as FPSO owners also have to face the worst ever down market for their equipment and services.

Business is so tough for oilfield giants Schlumberger NV and Halliburton Co that they have come up with a new sales pitch for crude producers halting work in the worst downturn in years. The moves by the world's No. 1 and No. 2 oil services companies show how they are scrambling to book sales of new technologies to customers short of cash after a 60 percent slide in crude to $45 a barrel. In some cases, they are willing to take on the role of traditional lenders, like banks, which have grown reluctant to lend since the price drop that began last summer, or act like producers by taking what are essentially stakes in wells. When its second-quarter net profit tumbled by more than half a billion dollars to just $54 million…

Talks that could lead to oilfield services provider Halliburton Co buying rival Baker Hughes Inc may herald increased deal-making in the energy business as companies bet on a protracted drop in oil prices, industry bankers said. Competing service companies including National Oilwell Varco Inc and Weatherford International may also be targets, bankers and lawyers said. In any deal, the incentives will be the same: consolidation would allow them to better weather the downturn and resist pressure from oil producers to slash prices. The Baker Hughes/Halliburton talks have stalled after the companies weren't able to agree on issues including price, people familiar with the matter said Friday. As oil prices fall, oil field service companies get squeezed, one industry lawyer said.

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.

Continental Resources Inc, the largest oil producer in North Dakota's Bakken shale formation, said on Thursday that Rick Bott, its president and chief operating officer, had resigned. Bott, 54, was widely considered the likely successor to Continental Chief Executive Officer Harold Hamm, 68. His departure leaves a talent gap at the top of the company, which is in the midst of an ambitious attempt to double its 2012 production levels by 2017. Continental said Bott's duties will be divided between remaining executives. It was not immediately clear why Bott resigned or if he had secured a new job. Before joining Continental in 2012, Bott had worked at Cairn India Ltd and in Devon Energy Corp's international division. Calls to Bott were not immediately returned.

Howard Thill has joined Devon Energy Corporation as senior vice president, communications and investor relations.He has joined the company to fill the position created by the retirement of Vince White, senior vice president, communications and investor relations. The company announced yesterday the retirement of Vince White who is scheduled to retire August 8, 2014. “Howard brings to Devon deep knowledge borne of extensive and varied experience in our industry,” John Richels, Devon’s president and chief executive officer said. Prior to joining Marathon, Thill was director of investor relations with Phillips Petroleum Co. He began his career with Phillips in 1982 as a drilling fluids sales/service engineer.

In its latest subsea vessels report Douglas-Westwood (DW) forecast more than $100b of expenditure on subsea vessel operations over the next five years – with global demand is expected to increase by 23%. The increase in expenditure is expected to be higher than the growth in vessel days, due to the move towards higher specification vessels to cater for deeper and more complicated field development programs. Dayrates for high specification dive support vessels (DSV) and multipurpose support vessels (MSV) are expected to increase by over 40% by 2017.

Devon Energy Corporation, a U.S.-based oil and gas exploration, development and production company, sold its producing Panyu field located offshore China to China National Offshore Oil Corporation. China National Offshore is a state-owned oil and gas producer in China. In April, Devon Energy said it had agreed to sell its producing Panyu field located offshore China to China National Offshore for $515m. During 2009, Devon's production from the Panyu field was approximately 12 thousand barrels of oil per day.

Transocean Inc. said that its ultra-deepwater drillship, Deepwater Pathfinder, has been awarded an 11-well exploration program offshore Nigeria under a drilling services sharing agreement between Nigerian subsidiaries of Devon Energy, ConocoPhillips, ExxonMobil and Royal Dutch Shell. The estimated 475-day exploration program is expected to commence by December 2004, following the rig's completion of a drilling project in the U.S. Gulf of Mexico and estimated 30-day mobilization to Nigeria. Revenues of approximately $90 million could be generated over the 475-day program, exclusive of revenues for mobilization and demobilization of the rig. The Deepwater Pathfinder is a dynamically positioned, ultra-deepwater drillship capable of operating in water depths of up to 10,000 feet.

According to reports, Devon Energy Corporation and its partners are planning to invest at least $775m in exploration off the coast of Brazil. The company says Brazil appears to be a good place for business and the company will explore for oil and gas in eight areas it's bought in past Brazilian government auctions. A company representative says it hasn't yet been determined how much of the $775 m Devon will provide. (Source: AP)

Keppel Offshore & Marine Limited (Keppel O&M) maintains its track record of on time, on budget deliveries with its first completion in 2007. Through its wholly-owned subsidiary, Keppel Shipyard Ltd (Keppel Shipyard), the Floating Production Storage and Offloading facility (FPSO) Polvo is on course to be delivered to valued customer, Prosafe Production (Prosafe) in February. FPSO Polvo was named by Lady Sponsor, Mrs CJ Hadden at a ceremony held earlier today. Mrs Hadden is wife of Mr Stephen J. Hadden, Senior Vice President (Exploration & Production) of Devon Energy, the oil company chartering FPSO Polvo. A leading owner and operator of FPSO and FSO facilities…

Reference is made to the Letter of Intent disclosed to the Oslo Stock Exchange September 7, 2006 regarding the assignment awarded the deepwater semi-submersible drilling rig West Sirius. Seadrill today confirms that the operator Devon Energy Corporation has signed the long-term contract to utilize the West Sirius in the Gulf of Mexico. The contract includes a four year assignment with the option for the operator to extend the contract to five or six years. Estimated contract value for the four year period is approximately $ 690m. West Sirius is currently under construction at the Jurong Shipyard in Singapore and is scheduled for delivery in the second quarter 2008.

Deep Sea Supply ASA has been awarded medium term charter contracts for two of its AHTS vessels the Sea Lynx and the Amadon Tide in North Sea and West Africa. Total value of contracts is $13m The company will transfer the vessel McNee Tide (and rename the vessel Sea Wolf) from West Africa to the currently very strong North Sea spot market. The vessel Sea Lynx, operating in the North Sea, has been awarded a 2 well option 1 well contract to Island Oil & Gas Ltd. offshore Ireland. Expected duration is 60 - 90 days. Amadon Tide (to be renamed Sea Bear), operating in West Africa has been awarded a contract to Adoon Pte. Ltd. in Nigeria from 1st May 2006 with expected duration 67-95 days.

China National Offshore Oil Corporation (CNOOC) signed a production sharing contract (PSC) with Devon Energy Corporation for deepwater block 42/05. Block 42/05, located in Baiyun Sag of Pearl River Mouth Basin in the Eastern South China Sea, covers a total area of 6,939 square km. with water depth ranging from 300 to 2000 m. The company has acquired 2-D seismic data in the block. Under the terms of the contract, Devon is committed to conduct a 3-D seismic survey and wildcat drilling during the exploration period. All expenditures incurred during exploration period will be borne by Devon. CNOOC Ltd., a subsidiary of CNOOC, has the right to participate in up to a 51% interests in the event of any commercial discovery in the block.

The BP-led Azerbaijan International Operating Company (AIOC) said on Wednesday it expected the Azeri government to give a green light in August for the next phase of its Caspian oil production project. AIOC's president David Woodward told an oil and gas conference in the Azeri capital Baku the next phase aims to boost production to 350,000 barrels per day in 2005 from current levels of 100,000-130,000 bpd. The project envisages bringing the Azeri field onstream in early 2005, adding to volumes from the Chirag field, which has been in production since 1997. The cost of the expansion plans, called Phase One, is put at $3.3-3.4 billion, Woodward said.

The BP-led Azerbaijan International Operating Company (AIOC) expects the Azeri government to give a green light in August for the next phase of its Caspian oil production project. AIOC's president David Woodward said the next phase aims to boost production to 350,000 bpd in 2005 from current levels of 100,000-130,000 bpd. The project envisages bringing the Azeri field onstream in early 2005, adding to volumes from the Chirag field which has been in production since 1997. The cost of the expansion plans, called Phase One, is put at $3.3-3.4 billion, Woodward said. The next phase envisages the construction of a drilling platform for 48 wells, a gas compressing facility, an underwater pipeline from the Azeri field and modernization of an onshore oil terminal.

Devon Energy Corp. reportedly plans to acquire PennzEnergy Co. in a friendly $2.4 billion deal that would create one of the 10 largest independent U.S. oil and gas producers.