Financial Times - Oct 16
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch for the accuracy of these reports. BBC, the British broadcaster, has announced plans for 155 job cuts across its news operations. This is part of a larger cost-cutting plan worth 700 million pounds (915 million dollars). Woodside Energy, an Australian oil and natural gas company, announced on Wednesday that it will delist next month from the London Stock Exchange in order to cut down the administration costs of the business.
Woodside Energy Q3 revenue exceeds expectations and will be delisted from LSE
Woodside Energy, an Australian company, reported on Wednesday a sequential increase in revenue for the third quarter and a record-breaking quarterly output. This was boosted by a faster ramp-up at its Sangomar Project and a strong performance across all of their LNG portfolios. The top independent oil producer in the country posted a 21% increase in revenue for the three-month period ended September 30, surpassing Visible Alpha's consensus estimate of $3.2 billion. Woodside's average realized prices for the third quarter of 2015 rose to $65. This is higher than the $62 boe price in the second quarter.
Brazil's hydropower is at risk due to the drying of river basins
Data collected by London Stock Exchange Group show that soil moisture in Brazil's major river basins for hydropower production has dropped to a level not seen since the early 1990s. This means that a severe drought could continue even when rains come back. The tropical rains that feed Brazil's vast river network allow hydropower plants generate two-thirds of Brazil’s electricity. But years of low rainfall have hurt this sector, driving up energy prices and fueling inflation. This has led economists forecasting a new round of interest rate increases.
British Business – September 6
These are the most popular stories in the British business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. According to a new study, British pension funds have the lowest level of support for their own stock market among developed economies. This will fuel debates about reforming UK retirement pots in order to boost the London Stock Exchange. BMW plans to launch its first hydrogen powered vehicle in 2028 using the fuel cell technology it developed with Toyota Motor Corp.
Gran Tierra Energy, a Canadian company, offers $226 million to buy UK-based i3 Energy.
The shares of i3 Energy jumped up to 33.7% in the morning on Tuesday after Canada's Gran Tierra Energy made an offer to purchase the British oil producer for 174.1 million pounds (226.23 millions). The implied value of the deal is 13.92 pences per i3 Energy's share. This represents a 49% premium to its closing price on August 16, which was listed in London. At 0804 GMT, i3 shares rose 26.27% to 12.16p. Gran Tierra Energy hopes to build an independent energy company with scale in the Americas. This will include increased production, reserves and cash flow, as well as development options throughout Canada, Colombia and Ecuador.
Ithaca Buys Chevron's UK North Sea Fields
Israel's Delek Group moved closer to listing its Ithaca Energy subsidiary on Thursday by buying most of Chevron's British North Sea oil and gas fields for $2 billion.Under pressure from a fall in oil prices to near 14-year lows of $26 a barrel in 2016, major oil and gas companies in the North Sea have been forced to sell assets to private equity-backed investors and specialized operators.Delek said the deal, backdated to Jan. 1 and pending regulatory approval, will quadruple Ithaca's pro-forma production to 80,000 barrels of oil equivalent per day. Cash coming from the field after Jan.
Test Well Boosts Valeura's Confidence in Turkey
Valeura said on Monday that findings from a test well in Turkey's Thrace basin, where it operates with Norway's Equinor, had boosted its confidence in the area's potential for gas fracking.Toronto-listed Valeura and its partners sit on 20 trillion cubic feet, or roughly 3.5 billion barrels of oil equivalent, of potential gas and condensate resources two hours from Istanbul, which they are fracking at a depth of more than 3 kilometers (1.86 miles).Valeura CEO Sean Guest said results from the appraisal well supported the…
Wartsila Bags Energy Storage Contract from ContourGlobal
Wartsila has won a 6 MW energy storage project contract for the Caribbean island of Bonaire from ContourGlobal Bonaire, a subsidiary of London based ContourGlobal.The engineering, procurement, and construction (EPC) hybrid energy project includes both the hardware, consisting of batteries and inverters, as well as GEMS, the energy management software from Greensmith Energy, a Wartsila company."The energy storage system will enable Bonaire, part of the Netherlands Antilles, to increase its use of renewable energy such as wind and solar.
En+ Considers Move to Russia's New Offshore Zone
En+ Group, hit by U.S. sanctions against Russia in April, said on Thursday it was investigating the possibility of re-domiciling from Britain's Jersey to one of Russia's new offshore zones.London-listed En+ Group, which manages the energy and aluminium businesses of Oleg Deripaska, was one of eight companies with ties to the Russian tycoon to be placed on a U.S. Treasury blacklist in April. The sanctions were related to Moscow's alleged meddling in the 2016 U.S. election.En+ also said on Thursday that its board had already…
Kosmos Energy Acquired DGE for $1.23 Bln
Kosmos Energy has agreed to acquire Deep Gulf Energy (DGE) from its private equity owner for $1.23 billion, according to a bourse filing on Monday, expanding the deepwater oil and gas firm's operations into the Gulf of Mexico.Dallas-based Kosmos, which currently operates in Africa and South America, will pay $925 million in cash and $300 million in Kosmos common stock to acquire DGE, with the transaction expected to close towards the end of the third quarter.Acquiring DGE's business will increase Kosmos' production by more than 50 percent to 70,000 barrels of oil equivalent per day (boed) from around 45,000 boed now, with the company's estimated r
Vivo Energy IPO Launches with 2 bln Pound Valuation
Largest Africa-focused IPO since 2005; Vivo to join FTSE 250 index. Vivo Energy PLC launched on the London Stock Exchange on Friday with a valuation of nearly 2 billion pounds ($2.7 billion), the largest London IPO so far this year and the largest Africa-focused IPO in more than a decade. The initial offer price for the just under 30 percent of the company floated was set at 165 pence per share and the shares advanced to 169.50 pence in conditional trading. The company is the downstream fuels joint venture of energy trading house Vitol and Helios Investment Partners which are cutting their stakes.
McTiernan Appointed Non-Executive Chairman, Hurricane Energy
Steven McTiernan has been appointed as Non-Executive Chairman of the board of directors of Hurricane Energy plc, effective May 1, 2018. Dr. David Jenkins, who has acted as Interim Chairman of the Board since November 2017, will return to his previous role as Senior Independent Director on this date.Steven McTiernan has over 45 years of oil and gas industry and investment banking experience. He was a non-executive director of Tullow Oil plc for eleven years until December 2012, during its period of rapid growth, and served as its Senior Independent Director.
Saudi Concerned About Risks with NY IPO for Aramco
Saudi Arabia has concerns about the risks that oil giant Aramco would run by choosing New York as the venue for its $100 billion market listing, Energy Minister Khalid al-Falih said in an interview with CNN. "I would say litigation and liability are a big concern in the U.S.," al-Falih was quoted as saying by CNN. The government has said it plans to sell about 5 percent of Aramco, hoping to raise some $100 billion or more in what would likely be the world's biggest initial public offering (IPO). New York and London have long been the clear frontrunners to host the international leg of the flotation, alongside a Riyadh listing.
Aramco IPO Venue up for Grabs
Saudi Crown Prince Mohammed bin Salman's upcoming trip to Britain and the United States could shape the decision on where to list oil giant Aramco, at a time when sources say the chances of London and New York hosting the IPO appear to be receding. The two leading financial centres have long been the clear frontrunners to host the international leg of the flotation, alongside a Riyadh listing. Yet this may no longer be the case as Hong Kong is emerging as an increasingly likely compromise because Riyadh wants to help Asian nations that are expected to become "cornerstone" investors…
Kenya Plans $1 Bln Dual Listing of National Oil Corp
Kenya plans to raise $1 billion by listing its National Oil Corporation at home and on the London Stock Exchange by early 2019, to buy a share of two oil blocks held by Tullow and its partners, a senior government official said on Wednesday. The East African country discovered oil in 2012 and full production is expected in 2021 after the completion of a $2.1 billion crude oil pipeline linking the oil fields with the proposed port of Lamu on the Indian Ocean Coast. "We need to raise money for our back-in rights," Andrew Kamau, the principal secretary for petroleum at the Ministry of Energy, told Reuters.
Attollo Offshore Joins ELITE
Attollo Offshore, an offshore marine operator, has announced it has joined London Stock Exchange Group’s (LSEG) international business support and capital raising ecosystem, for high growth companies, ELITE. The Aberdeen-based company, renowned for its superior management of assets required for late field life, rig-less well intervention, plug and abandonment and offshore wind projects across Europe, opened the London market on Wednesday 8 November. The Stock Exchange was opened by Aberdeen MP, Ms Kirsty Blackman, who welcomed the eighth cohort to ELITE UK, which includes two other Aberdeen-based companies.
LSE Has Strong Case for Aramco IPO - UK PM
The London Stock Exchange has made a "very strong case" for oil company Saudi Aramco to lists its shares in Britain, a spokesman for Prime Minister Theresa May said on Monday after President Donald Trump urged the king of Saudi Arabia to list in New York. "Obviously there are lots of big stock exchanges which have an interest in Aramco including the London Stock Exchange which we believe has made a very strong case for it being based here," the spokesman told reporters. Reporting by Elizabeth Piper
BP's Africa Partner Kosmos Reports Positive Gas Drill Test
Oil and gas producer Kosmos Energy , which along with oil major BP Plc plans to produce gas off Mauritania coast, said a test drill showed that a key field would produce about 60 million cubic feet of gas per day. Kosmos, which was admitted to trading on the London Stock Exchange's main market on Tuesday, claimed the well is capable of producing about 200 million cubic feet per day once fully operational. The company had in 2015 discovered a gas pool in the Tortue 1 exploration well, part of the Greater Tortue Complex spanning Senegal and Mauritania, contained more than 15 trillion cubic feet of gas.
Saudis Favor New York for Aramco Listing
New York float would demand more disclosure than London; NYSE would give Aramco access to larger pool of capital. Saudi Arabia favours New York for the main foreign listing of state oil giant Aramco, even though some financial and legal advisers have recommended London as a less problematic and risky option, people familiar with the matter told Reuters. A final decision on where to stage what could be the world's largest initial public offering will be taken by Crown Prince Mohammad bin Salman - or MbS as he is known - who oversees the kingdom's economic and energy policies, the sources said.
New UK Rules Could Lure Others Beyond Aramco
FCA proposed listing category tailored for state-owned firms; Critics say new listing could roll back on sensible reform. Proposed changes to Britain's listing regime are likely to attract a series of state-backed companies to London's stock markets as governments in oil rich states prepare for a wave of asset sales. However some investors and corporate governance groups say Britain's move to make its capital markets attractive to state-controlled firms by loosening some of the rules may lower the quality of companies on its stock exchange and leave shareholders with less protection when things go wrong.
