Why Didn’t Shell Try to Buy Anadarko?

In a television interview with CNBC published on Wednesday, Royal Dutch Shell plc’s CEO Ben van Beurden has revealed why the company didn’t try to buy Anadarko Petroleum Corporation.

“Post the deal with BG that we did, we had to be very disciplined with our capital and we said we will not spend more than $25 to $30 billion all the way up to 2020. And of course, this type of deal would not have fit in that capital budget,” Beurden told CNBC in the interview.

“You have to be disciplined. We did our deal earlier in the cycle and now we are still digesting that and that’s ok for me,” he added.

Last month, Occidental Petroleum Corporation entered into a definitive agreement to acquire Anadarko. The deal, which is for $59 in cash and 0.2934 shares of Occidental common stock per share of Anadarko common stock, is valued at $57 billion, including the assumption of Anadarko’s debt.

Chevron Corporation revealed on April 12 that it had entered into an agreement to buy Anadarko. Twelve days later, Occidental announced that it had made a proposal to acquire the company. Occidental then went on to alter its offer in May.

The boards of Shell and BG announced in April 2015 that they had reached agreement on the terms of a recommended cash and share offer to be made by Shell for the entire issued, and to be issued, share capital of BG. The deal was completed in February 2016.

Beurden was appointed as Shell’s CEO in January 2014. Before that, he served as Shell’s downstream director from January to September 2013 and as the company’s executive vice president of chemicals from 2006 to 2012.

In late 2012, Shell bought into a 50/50 joint venture in the Permian to develop an area of mutual interest with Anadarko.

Source: Why Didn’t Shell Try to Buy Anadarko?  | Rigzone

Santos confirms strong oil and gas find at Dorado offshore Western Australia

Jun 6th, 2019

Dorado-2 is in petroleum permit WA-437-P about 160 km (99 mi) north of Port Hedland.

Santos

Offshore staff

ADELAIDE, Australia – Santos has reported the Dorado-2 appraisal well has confirmed a major oil and gas resource in the Bedout basin offshore Western Australia.

Drilled down-dip about 2 km (1.2 mi) from the Dorado-1 discovery, the well encountered 85 m (279 ft) of net reservoir in the primary Caley Formation. An oil-water contact was intersected at 4,003 m (13,133 ft) measured depth, with 40 m (131 ft) of net oil pay encountered. An additional 11 m (36 ft) of pay was encountered in the Upper Caley sands.

Preliminary well site analysis indicates this upper zone is oil-bearing but is subject to further analysis to confirm the hydrocarbon phase, the company said.

A further 32 m (105 ft) of net pay was encountered in the underlying Baxter and Milne sandstones, with no fluid contacts intersected. Both sands, the company said, are currently interpreted to be gas bearing, but the Milne hydrocarbons will require further analysis to confirm the hydrocarbon phase.

The well result has increased confidence in the presence of large hydrocarbon columns in the Baxter and Milne reservoirs, Santos said.

Wireline pressure testing has confirmed that all the reservoirs are in pressure communication with the equivalent intervals in Dorado-1. Hydrocarbons have also been recovered from each reservoir interval via wireline sampling.

Initial indications are that fluid compositions are similar to the light oils and gases that were sampled in Dorado-1, where condensate yields ranged from 190 to 245 b/MMcf in the Upper Caley, Crespin and Milne Formations, and from 70 to 90 b/MMcf in the Baxter Formation.

Santos Managing Director and CEO Kevin Gallagher said: “This is a great result which indicates the Dorado discovery is larger than anticipated and which significantly de-risks a future development.

“The value of the discovery is greatly enhanced by the high-quality reservoirs and fluids and the shallow-water setting, which should facilitate a cost-competitive development.”

Dorado-2 is in petroleum permit WA-437-P about 160 km (99 mi) north of Port Hedland. Operator Santos has 80% interest and Carnarvon Petroleum has 20%.

The jackup Noble Tom Prosser drilled the well in a water depth of 91 m (299 ft) and reached a total depth of 4,573 m (15,003 ft).

Once wireline logging operations are completed, the well will be P&A’d as planned, and the rig will move to the Roc South-1 exploration well before returning to drill Dorado-3.

06/06/2019

Source: Santos confirms strong oil and gas find at Dorado offshore Western Australia | Offshore Magazine

Eni gains two blocks offshore Ivory Coast

Jun 5th, 2019

Offshore staff

SAN DONATO MILANESE, Italy – Eni has secured 90% operated stakes in two new exploration blocks in the eastern part of the sedimentary basin offshore Ivory Coast.

The blocks were part of the 20 blocks available at the end of 2018.

Blocks CI-501 and CI-504 are about 30 km (19 mi) from the coastline and cover a total area of about 911 sq km (352 sq mi).

The 512-sq km (198-sq mi) block CI-501 is in water depths of 100-2,400 m (328-7,874 ft), 80 km (50 mi) southwest of the capital Abidjan.

The 399-sq km (154-sq mi) block CI-504 is in water depths of 1,000-2,350 m (3,281-7,710 ft), 60 km (37 mi) southwest of the capital.

State company Petroci holds the remaining 10%.

The two blocks are adjacent to the north of the Eni-operated block CI-205.

Due to their geological continuity, the blocks will be studied in synergy, the company said, using its proprietary technologies, with cost optimization and facilitating time-to-market in the event of a petroleum discovery and commercial development.

06/05/2019

Source: Eni gains two blocks offshore Ivory Coast | Offshore Magazine