W&T Offshore, Inc. has announced that it has entered into a purchase and sale agreement with ExxonMobil Corporation ("ExxonMobil") to acquire their interests in and operatorship of oil and gas producing properties in the eastern region of the Gulf of Mexico (“GOM”), offshore Alabama, and related onshore processing facilities for $200 million. Key highlights of the transaction are as follows:
Today a new white paper has been released by Westwood Global Energy Group (WGEG) to mark the launch of a new interactive forecasting tool for the global offshore rig market, the result of a round of significant investment by WGEG. RigOutlook, previously confined to a biannual PDF report, now gives users the ability to see forecast demand, supply, utilization, and day rates on a global and regional basis covering the next five years. The newly-released white paper is intended to give you an introduction to Riglogix’s newest offering and highlight some initial outputs, as well as outlining the methodologies, limitations, and considerations.
Historic Leading Day Rates by Rig Type and Date of Award, 1st Jan 2010-1st June 2019. Line is Generated using GAM Smoothing. Source: RigLogix / RigOutlook
While there have been improvements in the offshore rig market in the last 12-18 months, utilization remains well below the 2010-14 average of c.76% – the last ‘up-cycle’ seen in the industry. A total of 460 MODUs were working globally in May 2019, the highest level of activity since May 2016 (466 rigs working). Over the same period, supply has decreased due to 207 MODUs being removed from the fleet, although 101 newbuild deliveries have also been made. Global utilisation across the total MODU fleet now stands at 59%, 12 percentage points higher than the lows of February 2017. Higher utilisation across the fleet has started the processes of increasing the day rate set for new contract awards (‘leading edge day rate’), although these effects are no doubt more notable in more niche markets such as the Norwegian North Sea.
While there remain some regional markets which continue to be challenged, the rig market as a whole appears to have emerged from one of the worst downturns in its history. Over the coming months and years, demand is expected to continue to increase as a backlog of delayed projects continues to be worked through, and aging, under-spec rigs continue to be retired. Whilst, even in the most optimistic scenario, it seems unlikely that the offshore rig market will return to the heights of the previous upturn, there should no-doubt be cautious optimism.
For more insights on the global offshore rig market, as well as an introduction to the methodology, considerations and limitations of Westwood’s new RigOutlook forecasting tool, request access to the RigOutlook white paper now using the form below.
Matt Adams, Senior Analyst, Rigs & Wells, Westwood Global Energy Group
Please complete the form below to receive the PDF download link.
By downloading this white paper, you agree to the Terms and Conditions of use as set out here. Only business email addresses are accepted and Westwood reserves the right to refuse delivery.
BP has agreed to sell its interests in Gulf of Suez oil concessions in Egypt to Dragon Oil, the Dubai-based oil and gas company. Under the terms of the agreement, Dragon Oil will purchase producing and exploration concessions, including BP’s interest in the Gulf of Suez Petroleum Company (GUPCO). Dragon Oil is a wholly-owned subsidiary of the Emirates National Oil Company (ENOC).
Petrobras reported a net profit of R$ 4 billion in the first quarter of 2019, an increase of 92% over the fourth quarter of 2018, mainly due to the lower occurrence of special items, with a total of R$ 600 million (negative). Adjusted EBITDA of R$ 27.5 billion was 6% lower than the fourth quarter of 2018, mainly driven by lower Brent prices, while free cash flow was positive for the 16th quarter in a row, with a total of R$ 12.1 billion.
Anadarko Petroleum Corporation and the co-venturers in Mozambique's Offshore Area 1, have announced a Final Investment Decision (FID) on the Anadarko-led Area 1 Mozambique LNG project.
Royal Dutch Shell plc (Shell) updates investors on the company’s strategy, setting out a compelling financial outlook to 2025 and building on a strong foundation that will enable it to thrive through the transition to a lower-carbon energy system.
VesselsValue's Head of Offshore, Robert Day, takes a look at Norway's spending over the past 12 months.
Net income for 43 U.S. oil producers totaled $28 billion in 2018, a five-year high. Based on net income, 2018 was the most profitable year for these U.S. oil producers since 2013, despite crude oil prices that were lower in 2018 than in 2013 on an annual average basis.
China’s national oil companies (NOCs) are increasingly investing in Africa to secure oil supplies to help feed surging domestic energy demand.
Exploration performance in Norway has dropped significantly in the last five years, reflecting a deterioration of quality of the prospect portfolio. Despite this, a dramatic increase in high impact drilling is planned for 2019 – results will be a key test of Norway’s ability to sustain exploration into the future.
Mohawk Energy, the expandable tubular well solutions specialist, has received a substantial investment from private equity firm Buckthorn Partners to support its domestic and international growth ambitions.
With the global offshore rig market starting to show signs of picking up, there has been a great deal written about the offshore rig recovery, and while rig owners in a few regions are enjoying high utilization and the dayrate benefits that go along with that, the same cannot be said for the fleet as a whole.
Equinor and Barra Energia (“Barra”) have completed their transaction announced on 4 July 2018, whereby Equinor has acquired Barra's 10% interest in the BM-S-8 block in Brazil's Santos basin for a total consideration of USD 379 million.
Upon the completion of this transaction, Equinor, ExxonMobil and Galp have also completed the two further transactions previously announced on 4 July on terms equivalent to those for the Barra transaction.
As a result, Equinor’s and its partners’ interests across the two licenses for the Carcará area are fully aligned.
| BM-S-8 (after closing of transaction with Barra) | BM-S-8 (after closing of transactions with ExxonMobil and Galp) | Carcará North | |
|---|---|---|---|
| Equinor | 46.5% (operator) | 40% (operator) | 40% (operator) |
| ExxonMobil | 36.5% | 40% | 40% |
| Galp | 17% | 20% | 20% |
CGG S.A. has signed a binding term-sheet with Shearwater GeoServices Holding AS (Shearwater) for a strategic partnership for marine seismic acquisition services and creation of a new streamer technology company.
Houston Energy, L.P. has entered into a strategic agreement with a private equity firm for deepwater Gulf of Mexico non- operated exploration projects. Height Capital Markets, LLC ("Height") served as the sole financial advisor to Houston Energy on its newly formed venture.
Equinor has exercised its preferential rights to acquire an additional 22.45% interest in the Caesar Tonga oil field from Shell Offshore Inc for a total consideration of USD 965 million in cash. This will increase Equinor’s interest from 23.55% to 46.00%. Anadarko remains the operator with a 33.75% interest, and Chevron retains its 20.25% interest.
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