Ford, Zipcar Announce New 2 Year Strategic Alliance for U.S. University Members

- Ford, Zipcar Announce New 2 Year Strategic Alliance for U.S. University Members



Aug 31, 2011

Ford (NYSE:F) and Zipcar (NASDAQ:ZIP) announced a new a strategic alliance establishing Ford as Zipcar's largest university vehicle partner, reaching students at more than 250 campuses.

The first of its kind, two-year tie up introduces a new generation of drivers to Ford vehicles with the highly-fuel efficient Focus and Escape now part of Zipcar's existing fleet of environmentally friendly, reliable and fun vehicles.

Zipcar will offer $10 off the $35 annual membership fee for the first 100,000 new University members who sign up for Zipcar, plus $1 off the hourly rate for the first 1 million hours of use on any of the new Ford vehicles at select colleges and universities

New Ford vehicles start arriving on campuses this week. The program, which could generate 2 million hours behind the wheel of Ford vehicles for college-age drivers, also helps reduce parking demand, congestion and emissions.

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BP, Reliance Make India Alliance Official

- BP, Reliance Make India Alliance Official

Tuesday, August 30, 2011
Reliance Industries Limited

Reliance Industries Limited (RIL) and BP on Tuesday announced the completion of BP's acquisition of a 30-percent stake in 21 oil and gas production sharing contracts (PSCs) that Reliance operates in India, including the producing KG D6 block.

This significant step will commence the planned alliance which will operate across the gas value chain in India, from exploration and production to distribution and marketing. The completion of the deal delivers one of the largest ever foreign direct investments into India.

The two companies will also form a 50:50 joint venture for the sourcing and marketing of gas in India which will also accelerate the creation of infrastructure for receiving, transporting and marketing natural gas.

Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said, "The alliance with BP will boost our efforts to realize the true potential of India's hydrocarbon reserves. The globally renowned expertise of BP and the in-depth domestic experience of Reliance make for a formidable alliance which will deliver unparalleled value for the country in its pursuit of energy security."

"This is the beginning of what we expect to be a long and successful working partnership with Reliance, building on the strengths of each company," said Bob Dudley, BP group chief executive. "This major investment is directly aligned with our strategy of creating long-term value by forming alliances with strong national partners, gaining material positions in significant hydrocarbon basins and increasing our exposure to growing energy markets."

BP will pay RIL an aggregate consideration of US$7.2 billion subject to completion adjustments for the interests to be acquired in the 21 production sharing contracts. Further performance payments of up to US$1.8 billion could be paid based on exploration success that results in development of commercial discoveries.

The 21 oil and gas blocks cover approximately [220,000] square kilometers and lie in water depths ranging from 400 to over 3,000 meters. They include the KG D6 block that currently produces about [1.7] billion cubic feet of gas per day (bcf/d), over 40 percent of India's total gas production. RIL will remain operator of the PSCs and BP will bring its global deepwater, sub-surface and gas expertise to enhance exploration and development of the blocks.

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Alliance to Develop Natural Gas Facilities in North Dakota

- Alliance to Develop Natural Gas Facilities in North Dakota

Thursday, June 23, 2011
Alliance Pipeline L.P.

Alliance announced plans to develop a pipeline and associated facilities in North Dakota to transport liquids-rich natural gas. Hess Corporation has entered into a precedent agreement with Alliance for service on the proposed 80-mile lateral pipeline, which would connect production from Hess' gas processing facility in Tioga, ND to the Alliance mainline near Sherwood, ND, for onward shipment to the Chicago market hub.

The pipeline's initial design capacity is approximately 120,000 Mcf/day, and can be expanded based on shipper demand. Alliance will hold an open season this summer to identify further shipper transportation needs.

The Tioga Lateral Project has a planned in-service date of July 2013, subject to regulatory and other required approvals.

"The Alliance system ships high-energy, liquids-rich natural gas, to NGL processing facilities owned by Aux Sable Liquid Products at the terminus of the mainline system near Chicago," said Murray Birch, Alliance president and CEO. "We are pleased that the Tioga Lateral Project will enable us to offer Williston Basin producers a value-added transportation option that is unique in North America."

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Repsol, Alliance Oil Team Up in Russian JV

- Repsol, Alliance Oil Team Up in Russian JV

Monday, June 20, 2011
Alliance Oil Co.

Repsol and Alliance Oil have signed a Memorandum of Understanding to form a joint venture that will serve as a growth platform for both companies in the Russian Federation, the world's largest oil and gas producer.

Alliance Oil will hold a 51% stake in the joint venture and contribute producing assets in the Volga-Urals Region while Repsol will own the remaining 49% and make an initial cash investment to finance future growth opportunities.

The agreement seeks to combine Alliance Oil's knowledge and privileged access to Russian exploration and production business opportunities with Repsol's know-how and technical capabilities to create a long-term exploration and production alliance.

In addition to the exploitation of the assets to be contributed by Alliance Oil, the agreement includes seeking opportunities for exploration and growth through producing assets in the Russian Federation.

"This cooperation with Alliance Oil enables Repsol to increase its producing assets and obtain privileged access to assets in the country, home to some of the largest hydrocarbon resources in the world, reinforcing this growth vector of our group," said Repsol Executive Chairman, Antonio Brufau.

"We are pleased to develop our partnership with Repsol and together create an additional important strategic upstream growth platform in Russia. I am convinced that the joint venture will create significant value for our shareholders and make a meaningful contribution to our reserves and production," said Eric Forss, Chairman of Alliance Oil Company ltd.

Repsol already owns a 3.47% stake in Alliance Oil resulting from the merger between Alliance Oil and West Siberian Resources in 2008. Repsol also owns a 74.9% stake in Eurotek-Yugra, which holds exploration and production licenses in the Karabashsky-1 and -2 blocks in the prolific West-Siberia basin.

The transaction is subject to negotiation of final contractual terms, due diligence of the assets to be contributed by Alliance Oil and the procurement of the relevant regulatory and corporate approvals, which is expected to be completed during 2011.

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Shell, CNPC Form Alliance for Well Manufacturing JV

- Shell, CNPC Form Alliance for Well Manufacturing JV

Monday, June 20, 2011
Royal Dutch Shell plc

Shell and China National Petroleum Company (CNPC) have signed a Global Alliance Agreement emphasizing their shared intent to pursue mutually beneficial cooperation opportunities internationally as well as in China.

The two parties also signed a Shareholders Agreement to establish a Well Manufacturing joint venture (50% CNPC and 50% Shell) subject to further corporate and government approvals. It is intended that the joint venture will develop an innovative, highly automated Well Manufacturing System (WMS) that could significantly improve the efficiency of drilling and completing new wells onshore. The details of the parties' respective contributions to the joint venture will be agreed during the transition phase over the coming months.

Peter Voser, Chief Executive Officer of Royal Dutch Shell plc, and Jiang Jiemin, Chief Executive Officer of CNPC, attended the signing ceremony in Beijing. Peter Voser said, "CNPC and Shell are collaborating in a variety of projects globally with the aim of investing for profitable growth, and to meet the world's growing demand for cleaner, affordable energy. The Shareholders Agreement for the Well Manufacturing JV underscores how Shell and CNPC are working together to develop gas resources using innovative and cost competitive technologies."

Full scale commercialization of tight gas, shale gas and coal bed methane can require the drilling of hundreds of wells each year, over many years. It is intended that the WMS will be designed to drill and complete wells in a standardized and repeatable manner, using advanced automation techniques. The system aims to incorporate the best technology and procurement capabilities from both partners.

The joint venture intends to use state-of-the-art technologies such as automated directional drilling and drilling optimization, including technologies pioneered by Shell in its North America tight gas operations. The WMS joint venture is expected to source the majority of its rigs, services and drilling equipment from low-cost suppliers in China. This combination could unlock substantial natural gas resources cost-efficiently, and on a large scale.

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BP, Rosneft Look to Salvage Alliance after Setback

BP, Rosneft Look to Salvage Alliance after Setback

Friday, March 25, 2011

by  Guy Chazan & Gregory L. White

The Wall Street Journal

 

BP and Rosneft scrambled Friday to salvage their landmark alliance after BP's Russian partners in its TNK-BP Ltd. joint venture blocked it. But it is unclear how a deal so mired in legal challenges and high-stakes Russian power struggles can now be rescued.

Rosneft still appears determined to implement its tie-up with BP, despite Thursday's decision by a Stockholm arbitration panel to effectively put it on ice. The Russian company's chairman, Igor Sechin, noted the arbitrators did not block the deal completely, but simply extended an injunction temporarily freezing it.
Sechin, who is also Russia's deputy prime minister, told Russian newswires that Rosneft was "satisfied" with BP as a partner, and was working on a series of measures to allow it "to defend its interests."
That suggests the state-controlled oil company has not given up on its proposed alliance with BP, under which the two firms agreed to swap shares in each other and explore for oil and gas together in the frigid, hydrocarbon-rich waters of the Russian Arctic.

The panel's move marked a setback for the architects of the deal, Sechin and BP Chief Executive Bob Dudley, and both are bound to lose face as they seek to navigate a way out of the impasse. Some analysts worry the dispute could harm BP's overall position in Russia, which accounts for one-quarter of its global oil and gas production and close to a fifth of its reserves.

"On the face of it this looks a messy situation and one where we think BP will do well to emerge with all of its investment in TNK-BP, reputation in Russia and Arctic oil deal intact," Citigroup said in a note.
But for the apparent winners of the spat, Access-Alfa-Renova or AAR, the group of Soviet-born billionaires who own 50% of TNK-BP, the victory may be Pyrrhic. Some bankers and analysts say AAR could soon face pressure from the Russian authorities to drop its opposition to a deal that has the public support of the country's top leaders.

"It's pretty risky to challenge the government on something that's considered strategically important," said one veteran Moscow banker.

People close to AAR insist the Russian shareholders are confident they have the support of the authorities for what they see as a defense of their legal interests.

One way out of the standoff would be for TNK-BP to participate in the Arctic project in place of BP, as the joint venture's management had proposed last month. At the time, both Rosneft and BP opposed that option, arguing that TNK-BP lacked the experience and technology required for the venture.

Sechin appeared to soften his position slightly Friday, saying TNK-BP might be able to come up with a structure that would allow it to take part -- such as by outsourcing some of the work to others with experience drilling offshore. "But this is a somewhat different construct," he said.

BP, meanwhile, is still determined to at least salvage the share swap element of its deal with Rosneft. It said Thursday that it would be seeking a determination from the Stockholm arbitrators as to whether that part of the agreement "may proceed on its own."

A BP spokesman denied suggestions from analysts that such an equity investment would be of dubious strategic value to BP without the Arctic deals. "It would still be a very effective way of building on the relationship we've had with Rosneft since the late 1990s," he said.

In opposing the BP-Rosneft tie-up, AAR argued that it violated their shareholder agreement with BP, which stipulates the U.K. company must pursue all business opportunities in Russia exclusively through TNK-BP. The deal was sent to independent arbitrators after AAR won a court injunction last month freezing it.

The Russian tycoons can now either ensure that TNK-BP is dealt in on the BP-Rosneft alliance, or that they are richly compensated for dropping their opposition to the deal.

Thursday's ruling will also give them maximum leverage if they want to discuss terms for an exit from TNK-BP, according to people close to the situation. "This at least forces everyone to the table," said one person.
AAR insists they have no plans to sell, and Sechin said Friday that Rosneft has not discussed a buyout with them. The likely price tag -- at least $30 billion -- would make the deal a costly one for any potential buyer, analysts and bankers say.

Another possible outcome could see BP selling its stake in TNK-BP to another international oil company, thereby freeing the U.K. giant up to proceed as planned with its Rosneft deal. No such discussions have been held, according to people close to TNK-BP.

The most painful scenario for BP would be to see the Arctic deal go to a rival, such as Shell or Chevron.
The exclusivity period of its deal with Rosneft expires Apr. 14. Yet people familiar with the situation say it's unlikely any other Western major would agree to swap shares with Rosneft. BP's willingness to carry out such an arrangement was a key factor in it winning the Arctic deal.