Technip, Global Industries Agree to Merge

- Technip, Global Industries Agree to Merge

Monday, September 12, 2011
Technip

Technip announced Monday an agreement to acquire the entire share capital of Global Industries and reinforce its leadership in the fast-growing subsea segment of oil services. The two companies have entered into a definitive merger agreement whereby Technip will pay US$8.00 per Global Industries share. The transaction values Global Industries at US$1,073 million (EUR768 million at current exchange rates), including approximately US$136 million of net debt. The Board of Directors of Global Industries has unanimously approved the transaction.

The transaction price represents a 55% premium to Global Industries' share closing price on September 9, 2011, the last day prior to announcement of the transaction. The transaction is to be funded using existing cash balances and credit facilities.

Global Industries brings to Technip its complementary subsea know-how, assets and experience, comprising 2,300 employees operating 14 vessels, including notably two newly-built leading edge S-Lay vessels, as well as strong positions in the Gulf of Mexico (US and Mexican waters), Asia-Pacific and the Middle East.

Technip's global presence, world-class technologies, assets and services and strong project management track record will realize the full value and potential of Global Industries' know-how, assets and experience, and broaden opportunities for Global Industries' employees.

The acquisition of Global Industries reinforces Technip's leadership in the fast-growing subsea market. Strong revenue synergies are expected as the acquisition will substantially increase Technip's current capabilities and expand its addressable market by around 30% in deep-to-shore subsea infrastructure. Cost synergies are estimated to be at least US$30 million.

Given the anticipated synergies, the transaction is expected to be accretive to Technip's earnings per share by around 5 to 7% in 2013.

The transaction is expected to close early in 2012. The management teams of Global Industries and Technip will work closely together to define the integration plan. Thierry Pilenko, Chairman and Chief Executive Officer of Technip, said:

"The acquisition of Global Industries reinforces Technip's leadership in Subsea, one of our three market segments alongside Onshore and Offshore. The subsea market looks likely in 2011 to show a record amount of orders for our industry and our own backlog at end-June 2011 is above its previous peak. We see that our customers continue to firm up a substantial number of large offshore developments with Brazil, the Gulf of Mexico, West Africa and Asia Pacific leading the way to drive future growth. Our investment in Global Industries substantially expands our addressable market in subsea. Global Industries' capabilities, know-how and experience, notably in S-Lay and Heavy Lift, add to our already unique vertically integrated range of products and services, enabling us to offer our clients greater value in the execution of complex projects from deep-to-shore. We expect that the application of Technip's own skills in offshore and subsea developments, its commercial footprint and its project management experience will drive a rapid deployment of the Global Industries teams and assets on customer projects. The transaction is expected to meet our hurdle rate, create value for Technip's shareholders, and raise earnings per share starting by around 5 to 7% in 2013."

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DNO, RAK Petroleum Agree on Merge of RAK's Operating Units

- DNO, RAK Petroleum Agree on Merge of RAK's Operating Units

Monday, September 05, 2011
Dow Jones Newswires
STOCKHOLM
by Dominic Chopping

Norwegian oil company DNO International said Monday it has signed a definitive agreement to merge RAK Petroleum's oil and gas operating companies into the Norwegian company, completing talks that started in July of this year.

Under the proposed transaction with United Arab Emirates-based RAK Petroleum Public Company Limited, DNO will issue RAK Petroleum shares at NOK9.50 a share, valuing DNO at $1.64 billion, against a value of the RAK Petroleum assets of $250 million.

"By combining our two companies' assets and people, the enlarged DNO International will be positioned not only to extract greater value from the existing exploration and production properties but to play an even more active role in the Middle East and North Africa or MENA region," DNO Managing Director Helge Eide said in a statement.

He added that DNO is committed to further expanding its operations in the Kurdistan Region of Iraq.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Iranian Oil Min: OPEC Members Couldn't Agree on Timing of Increase

- Iranian Oil Min: OPEC Members Couldn't Agree on Timing of Increase

Wednesday, June 08, 2011
Dow Jones Newswires
by James Herron

No countries from the Organization of Petroleum Exporting Countries opposed an increase in its production ceiling at the group's meeting Wednesday, said Iranian Oil Minister Iranian Oil Minister Mohammad Aliabadi.

However, agreement could not be reached on the timing and amount of an increase, so the group left it's quota unchanged, Iranian Oil Minister Mohammad Aliabadi told reporters at a briefing.

Iran, which currently holds the OPEC presidency, may call an extraordinary meeting ahead of the next scheduled meeting in December, he said.

OPEC Secretary General Abdalla Salem el-Badri said the next OPEC meeting would take place in December in Vienna. The meeting had been expected to take place in Iran, in line with OPEC custom that the December meeting is held in the home country of the organization's president.

OPEC officials announced Wednesday that they had failed to reach an agreement, a move that means output is unchanged. The move sent oil prices higher.

Copyright (c) 2011 Dow Jones & Company, Inc.

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BP, MOEX Agree to $1.1B Settlement for Macondo Spill

- BP, MOEX Agree to $1.1B Settlement for Macondo Spill

Friday, May 20, 2011
BP plc

BP has reached agreement with MOEX and its affiliates, Mitsui Oil Exploration and MOEX USA, to settle all claims between the companies related to the Deepwater Horizon accident.

MOEX - which had a ten percent interest in the Macondo well - has joined BP in recognizing and acknowledging the findings by the Presidential Commission that the accident was the result of a number of separate risk factors, oversights and outright mistakes by multiple parties and a number of causes. Like BP, MOEX Offshore has also recognized and acknowledged the conclusions of the United States Coast Guard that, among other things, the safety management systems of both Transocean and its Deepwater Horizon rig had significant deficiencies that rendered them ineffective in preventing the accident. MOEX has concluded that entering into a settlement with BP is in its best interest. The agreement is not an admission of liability by any party regarding the accident.

Under the settlement agreement, MOEX USA Corporation, the parent company of MOEX Offshore 2007, will pay BP $ 1.065 billion. BP will immediately apply the payment to the $20 billion trust it established to meet individual, business and government claims, as well as the cost of the Natural Resource Damages.

The parties have also agreed to mutual releases of claims against each other. BP has agreed to indemnify MOEX for compensatory claims arising from the accident. BP's indemnity excludes civil, criminal or administrative fines and penalties, claims for punitive damages, and certain other claims.

"This settlement is an important step forward for BP and the Gulf communities," said BP group chief executive Bob Dudley. "MOEX is the first company to join BP in helping to meet our shared responsibilities in the Gulf, and Mitsui, through MOEX USA Corporation, is showing great corporate citizenship in standing behind its affiliate and making a contribution to meet the costs of this tragic accident. We call on the other parties involved in the Macondo well to follow the lead of the MOEX and Mitsui parties."

BP and the Mitsui group are committed to enhancing their business relationship globally now that the issues surrounding the Macondo well have been resolved between the two companies.

Today's settlement is the most recent step BP has taken to raise funds to help BP meet its commitments in the Gulf of Mexico. BP has so far concluded agreements for asset divestments totaling approximately $25 billion, and has recently announced that it will also divest a number of operated oil and gas fields in the UK and two of its US refineries - Texas City and Carson - along with their associated marketing interests.

BP is also working to ensure that the other parties involved in the Macondo well - notably, Transocean, which owned and operated the Deepwater Horizon rig; Halliburton, which designed and pumped the unstable cement that the Presidential Commission found was a key cause of the accident; and Anadarko, which owned 25 percent of the project - contribute appropriately. From the outset, BP has committed to paying all legitimate claims and fulfilling its obligations to the Gulf communities under the Oil Pollution Act. To date, BP has paid nearly $6 billion in claims.

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Rosneft, Lukoil Agree to Joint Offshore-Exploration Deal

Rosneft, Lukoil Agree to Joint Offshore-Exploration Deal

Thursday, April 21, 2011
Dow Jones Newswires

Rosneft and the country's biggest private oil producer, Lukoil, on Thursday signed a long-term cooperation deal that includes offshore exploration in Russian Arctic waters.

The two companies agreed to work together on "geological exploration in the license areas of Rosneft on Russia's shelf and development of fields already discovered," Lukoil and Rosneft said in a joint statement.