Hamel takes the Helm as GECF Secretary General
Mohamed Hamel from the People's Democratic Republic of Algeria has assumed office as the fourth Secretary General of the Gas Exporting Countries Forum (GECF), the global platform of leading gas exporting countries.He was appointed to the helm of the 18-country energy organization at the 23rd GECF Ministerial Meeting, presided by the Plurinational State of Bolivia in November 2021, for a period of two years commencing January 1, 2022. An engineer by profession, Hamel is a familiar face in the energy space and brings a long and distinguished career to advance the GECF at a time when natural gas is emerging as a frontrunner to shape a stable…
Petronas Sets Up Team for Renewables Push
Malaysian state-owned oil and gas firm Petroliam Nasional Berhad, or Petronas, has set up a new business within the group to make a push into renewable energy, the head of the new venture said on Tuesday.Petronas has expressed interest over the last year to diversify into renewables amid low oil prices. In March, Chief Executive Wan Zulkiflee Wan Ariffin said Petronas will explore new business areas including new energy and that the company will assess opportunities in solar power.Jay Mariyappan told an industry forum that…
Carlyle Group Acquires EnerMech from Lime Rock Partners
Global alternative asset manager The Carlyle Group announces that it has agreed to acquire EnerMech Group Ltd, an international services company providing critical asset support to the energy, infrastructure and industrials sectors, from Lime Rock Partners.The transaction is expected to close in Q4 2018, subject to customary anti-trust and regulatory approvals.Equity for this investment will come from Carlyle International Energy Partners (CIEP), a $2.5 billion fund that invests in the global oil and gas sector outside North America. The Fund’s mandate includes exploration & production, mid-stream, downstream and oil field services.
Build It and They Will Buy: The New World of LNG Canada
The first major liquefied natural gas (LNG) project to be approved globally in five years will be built in Canada, but its underlying philosophy appears to be more closely allied to the Australian concept of "she'll be right, mate."The LNG Canada project was given the green light on Tuesday by Royal Dutch Shell, which is leading the $31 billion venture along with partners Petronas, Mitsubishi, PetroChina and Korea Gas.What makes the first export plant on Canada's west coast different to the last wave of LNG projects is…
Cryptocurrency May Light Up Renewable Energy in Moldova
Moldova, a small, landlocked country in eastern Europe, imports three-quarters of its energy and has seen its energy prices rise by more than half in the past five years.But that could soon change, according to the United Nations Development Programme (UNDP), which this year will launch an innovative effort to power a Moldovan university with cryptocurrency-funded solar energy.The initiative with Sun Exchange, a South African solar power marketplace, will allow people to buy solar cells using SolarCoin, a cryptocurrency launched by blockchain start-up ElectriCChain…
MEG Energy Seeks Leveraged Loan
Canadian oil and gas company MEG Energy is testing the capacity for oil-related loans with a US$1.235bn deal that will be used to refinance debt and is part of an overall capital restructuring. The company, which is rated B3/BB-/B, could open the door for other leveraged energy borrowers to tap the loan market. These issuers are considered riskier than those rated investment-grade. Access to this pool of money has been largely shut off to the sector over the last year after oil prices started plummeting in 2014. "Refinancing opportunities in the energy space are likely few and far between…
Total to Acquire Saft Group
Total and Saft announced today that, following the signature of an agreement between the companies, Total filed a friendly tender offer on all of the issued and outstanding shares in the capital of Saft with the French Financial Markets Authority (Autorité des Marchés(“AMF”)). The proposed offer will target all of Saft’s issued and outstanding shares at a price of €36.50 per share, ex-dividend of €0.85 per share, valuing Saft’s equity at €950 million. The offer price represents a 38.3% premium above Saft’s closing share price of €26.40 on May 6…
Covey Park Inks Deal for Louisiana Shale Gas Acreage
Private equity-backed Covey Park Energy LLC said on Wednesday it bought shale natural gas acreage in Louisiana for $420 million from EP Energy Corp, the latest in a slow trickle of land deals across the energy space. Covey, which is funded by Denham Capital, bought 52,933 gross acres in the Haynesville and Bossier shales. The land produced about 113 million cubic feet per day in the fourth quarter. Covey said it aims to increase that to 200 million cubic feet per day. After the deal closes in the second quarter, Covey said it will control nearly 200,000 acres across Texas and Louisiana holding roughly 2 trillion cubic feet of natural gas.
Energy Stocks are Back - for Some on Wall Street
While many investors have been wary of taking chances on the battered energy space, a sizeable minority of Wall Street strategists are betting on a pickup in oil prices next year and recommending energy stocks. At least seven of 25 strategists in a recent Reuters poll cited energy as their contrarian pick for 2016 or said they expect an upside surprise from oil and energy in 2016. The integrated oil companies should do best, these strategists said, with at least a couple of analysts - including Peter Cardillo of First Standard Financial - forecasting that oil would top $55 a barrel by the end of 2016.
Bullish Flow in Oil ETF Options Belies Dim Outlook
A bullish signal emerging from trading in the options in the largest exchange-traded oil fund should be taken with a pinch of salt because the outlook for crude prices remains bleak, analysts said. U.S. crude has largely stayed below the $50 mark for more than three months, but call options on the United States Oil Fund (USO), typically used for placing bullish bets on shares of the fund, have seen a big uptick since October. Calls outnumber puts by a 1.3-to-1 margin, the highest in three years, according to options analytics firm Trade Alert. That growing preference for the calls is a departure from the norm.
Shell-BG Deal no Harbinger for What Comes Next
There is a widespread assumption that weak commodity prices are likely to spark a wave of merger and acquisition activity as stronger companies seek to buy assets on the cheap. The $70 billion buyout of BG Plc by larger rival Royal Dutch Shell is generally viewed by investors and analysts as the first big deal in a likely series of major mergers and acquisitions in the resource sector. After all, the last time commodity prices fell sharply, around 15 years ago, there was a rash of mega-mergers, such as Exxon with Mobil and Conoco with Phillips in the energy space, and BHP with Billiton and Rio Tinto's purchase of Alcan. shareholder value.
American Eagle Energy Files for Chapter 11 Bankruptcy
American Eagle Energy Corp filed for Chapter 11 bankruptcy, the latest energy company forced to restructure because of depressed oil and gas prices. Listing about $215 million in debts, American Eagle Energy filed its petition in U.S. Bankruptcy Court in Denver on Friday, about two months after missing an interest payment on $175 million of notes. The Littleton, Colo.-based company, which drills mainly in the so-called "Spyglass Area" in North Dakota, had raised the debt just last August, shortly before a sharp drop in oil prices would threaten profit margins.
Mercuria Expands to Minerva Maritime Fuel business
In a statement today, the global head of trading of Mercuria, one of the world's largest independent energy and commodities groups, discussed the expansion of the group's maritime fuel business, Minerva. "We believe we are forging a strong new model in the maritime fuel business. This is a transparent and reliable model that puts the client first to ensure the quality and delivery of their energy needs to their marine vessels," said Magid Shenouda. "We are investing substantial resources into the bunkering business. Minerva is the natural complement to Mercuria's fuel oil trading structure," continued the global head of trading.
Wall St Edges Lower as Oil Decline Continues
U.S. stocks were little changed on Wednesday, putting major indexes on track to close out 2014 just off record levels, as crude oil prices continued their descent. While the market's seasonal trend of modest moves and low volume continued, there was heavier action in the energy space. U.S. Crude oil lost 2.1 percent, the fourth drop of at least 2 percent in the past five sessions, putting the commodity at its lowest since May 2009. Brent shed 1.7 percent to $56.88. The S&P Energy index, easily the worst performing sector of the year with a decline of more that 9 percent, edged down 0.1 percent Wednesday.
Abigail Ross Hopper Named BOEM Director
Secretary of the Interior Sally Jewell today named Abigail Ross Hopper as the Director of the Bureau of Ocean Energy Management (BOEM), which manages the development of our nation’s conventional and renewable energy and marine mineral resources on the Outer Continental Shelf. Hopper currently serves as the Director of the Maryland Energy Administration and will assume her new position on January 5, 2015, as the second director in BOEM's history. Hopper will take the helm from Acting Director Dr. Walter Cruickshank, who has been serving since former Director Tommy Beaudreau became Chief of Staff to Secretary Jewell in May 2014.
GE Nears Deal to Sell Fuel Dispenser Unit
General Electric Co is in advanced talks to sell its energy unit that makes fuel dispensers to First Reserve Corp, according to people familiar with the matter, in the latest example of a conglomerate selling an unloved business to a buyout firm. A deal will likely value GE's unit, called Wayne, at between $500 million and $600 million, the people said this week, asking not to be identified because the talks are confidential. An agreement has not yet been signed and negotiations could still fall through, the people added. GE and First Reserve declined to comment.
