CNPC Wins Bid for Afghan Blocks

- CNPC Wins Bid for Afghan Blocks

Tuesday, September 06, 2011
Tethys Petroleum Ltd.

Tethys announced that it understands that the Chinese State Oil Company, CNPC, has won the tender for the Kashkari, Bazarkhami and Zamarudsay blocks in Northern Afghanistan which Tethys was also bidding for.

As a commercial oil and gas company Tethys could not offer the same terms as CNPC which, in Tethys' view, would make the project non-commercial. Tethys still believes there is good oil and gas potential in Afghanistan and will evaluate any other future opportunities there.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

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Transocean Bid Gets Green Light from Aker Investors

- Transocean Bid Gets Green Light from Aker Investors

Friday, August 26, 2011
Transocean Ltd.

Transocean Services, a wholly owned subsidiary of Transocean, after receiving clearance by the Oslo Stock Exchange, launched its all cash voluntary offer (the "Offer") for 100 percent of the shares of Aker Drilling ASA ("Aker Drilling") for NOK 26.50 per share. The Offer has been made on the same terms as the previously announced voluntary offer, except that it has been made on an unconditional basis and with settlement guaranteed by a financial institution.

The Offer period begins August 26, 2011 and ends on September 23, 2011 at 11:30 a.m. (EDT), 5:30 p.m. (CEST). To date, Transocean and its affiliates have acquired 13.7% of the shares and votes in Aker Drilling, and shareholders representing 59.5% of the total share capital of Aker Drilling have given their unconditional and irrevocable pre-acceptances to the Offer.

The Offer document has been reviewed and approved by the Oslo Stock Exchange in accordance with Section 6-14 of the Norwegian Securities Trading Act. The document will also be sent to the shareholders of Aker Drilling, subject to restrictions under applicable securities laws.

The Offer and the distribution of this announcement and other information in connection with the Offer may be restricted by law in certain jurisdictions. Transocean assumes no responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.

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ONGC Chairman: Plan To Bid Aggressively for Overseas Blocks

- ONGC Chairman: Plan To Bid Aggressively for Overseas Blocks

Thursday, August 25, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma

Oil & Natural Gas Corp. (ONGC) plans to aggressively bid for oil and gas assets overseas in upcoming auctions as part of its strategy to more than double oil production abroad to 20 million tons a year by 2020, the chairman of India's flagship explorer said.

ONGC plans to work with other Indian state-run oil and gas companies through its overseas investment arm ONGC Videsh Ltd., or OVL, to bid for assets overseas, A.K. Hazarika told Dow Jones Newswires in an interview late Wednesday.

"Ours is an import-dependent country and we need energy," Hazarika said. "Although, all the companies can go out and bid, we shouldn't be competing against each other. So we will form joint ventures."

India's state-run companies have lagged behind those from bigger Asian rival China in acquiring energy assets overseas.

OVL's last big acquisition was Russia-focused Imperial Energy in January 2009, which it bought for $2.12 billion.

The federal government is now considering creating a sovereign fund focused on resource asset acquisition overseas to seek energy sources for the world's second-fastest growing major economy.

OVL has been shortlisted to bid in Iraq's forthcoming auction round, Hazarika said, adding his company will form a consortium for bidding.

Iraq is offering 12 exploration blocks in its fourth licensing round, which will take place in January.

He said OVL will also be interested in forthcoming auctions in Brazil and Oman.

Early next year, Brazil is expected to hold the 11th bid round for exploration and production blocks in onshore and offshore basins.

OVL has stakes in one producing block and half a dozen exploratory blocks in Brazil.

Oman is expected to offer about five oil and gas blocks in a new exploration licensing round.

"ONGC will look into the properties and take a call based on due diligence," Hazarika said.

He said OVL, which produced 9.43 million tons of oil and oil equivalent gas in the year ended March 31, has invested INR560 billion ($12 billion) so far in overseas assets.

"Money is not a constraint for us as OVL can easily borrow from the market," Hazarika said. He didn't give details about the company's overseas investment plans.

He said OVL also expects to resume exploratory activities in Libya and explore more investment opportunities once normalcy returns in the African country.

OVL declared force majeure and suspended operations in February in an offshore exploration block in Libya, citing political unrest.

Oil companies active in Libya before the civil war began gearing up for the challenge of resuming operations in the country Monday as rebel forces moved closer to taking over Tripoli.

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

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Iraq Oil Ministry Qualifies 41 International Firms for New Bid Round

- Iraq Oil Ministry Qualifies 41 International Firms for New Bid Round

Monday, August 08, 2011
Dow Jones Newswires
AMMAN
by Hassan Hafidh

The Iraqi oil ministry has qualified some 41 international companies to compete for 12 exploration blocks in the next bidding round which is scheduled to be held in January, the ministry said in statement Monday.

Iraq, which sits on the world's third largest oil reserves, has estimated that the new blocks would add some 10 billion barrels of oil to Iraq's current reserves of 143 billion barrels, and some 29 trillion cubic feet of gas to its current reserves of 112.6 trillion cubic feet.

Among the companies qualified by the ministry for the licensing auction are some of the world's oil majors such as BP, Shell, ExxonMobil, Lukoil, Total, China National Petroleum Corp., or CNPC, Eni, Occidental Petroleum Corp. (OXY) and Chevron.

The list also includes nine Japanese firms. They are, among others, INPEX, Japan Oil, Gas and Metals National Corp., or JOGMEC, Mitsui Oil Exploration Co. Ltd, JX Nippon Oil & Gas Exploration Corp., or JX-NOEX, Itochu, Mitsubishi, and Japan Petroleum exploration Co. Ltd, known as Japex.

Two Arab companies are listed by the ministry. They are Mubadala Oil & Gas of the United Arab Emirates, and Kuwait Energy of Kuwait.

The ministry said the chosen companies are among 50 firms who submitted applications and documents to take part in the bidding round, scheduled to be held in January next year.

Many of the listed companies have won deals to upgrade Iraq's vast oil and gas fields. Baghdad has held three bidding rounds in the past two years to auction off 15 of the country's most prized oil and gas fields.

Three of the announced blocks are located in the western Anbar province while two others are shared by the Anbar, Nineveh and Najaf governorates. The sixth is in Nineveh governorate in northern Iraq. These six are believed to contain gas resources, oil ministry officials said.

The remaining five blocks, believed to contain crude oil resources, are located in other governorates including Basra, Dhi Qar (Nassiriyah), Muthanna (Samawa), Babil, Najaf, Wasit and Diyala provinces, the officials said.

The size of the blocks range from 5,500 square kilometers to 9,000 square kilometers, they added.

Iraq needs to boost gas production and build more gas-fired power plants to increase its power output, currently at 6,500 megawatts, which represent less than half the country's needs.

Although international companies would prefer production-sharing contracts for exploration blocks, Iraqi oil officials said the deals would be based on a service contract, which means winning companies will be paid a flat fee for their services rather than be given a share in the resources. But it would be slightly different from the 20-year service contract offered in the previous three bidding rounds, they said.

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

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Bristow to Bid for SAR Contract

- Bristow to Bid for SAR Contract

Friday, July 15, 2011
Bristow Helicopters Ltd.

Bristow Helicopters announced its intent to offer the British Government a confident and assured solution for the new UK interim Search and Rescue (SAR) contract which is due to be launched following the collapse of the £6 billion SAR-H program.

Secretary of State for Transport, Philip Hammond, announced in the House of Commons on Monday, July 11, that a tender will be issued for the interim period. The contract is expected to run for up to six years until the long-term future provision of such services are fully considered.

Bristow originally held the UK SAR service contract for over three decades until 2007; during this period Bristow aircrews amassed over 11,500 SAR missions. With full desire to regain this contract, Bristow hopes to inject confidence into the Government and local communities through solid partnerships and a value for money solution which allows this vital public service to continue uninterrupted.

Richard Burman, Bristow Helicopters' Managing Director, said, "Bristow has a long and distinguished record in SAR with the Maritime Coastguard Agency and we would be delighted to service the contract again."

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Williams Raises Bid for Southern Union to About $5.6B

- Williams Raises Bid for Southern Union to About $5.6B

Thursday, July 14, 2011
Dow Jones Newswires
by Ben Lefebvre

Williams Cos. raised its bid for Texas pipeline company Southern Union to about $5.6 billion in cash in the latest round of a takeover battle with Energy Transfer Equity.

Williams latest bid tops Energy Transfer's previous $5.1 billion cash-and-stock offer and its own previous bid of $5 billion in cash. The two companies have been competing to merge with Southern, with the winner of the competition expected to become the country's largest natural-gas pipeline company.

Williams said it hopes to have an agreement hammered out with Southern by Tuesday, which it maintains is enough time to share business data with Williams and hold the necessary management meetings to get approval.

"It's fairly simple as to what we have to offer," Williams Chief Executive Allan Armstrong said in an interview. "We don't think the decision process is real complex."

Representatives of Southern and Energy Transfer were not immediately available to comment.

Williams all-cash bid might be simple, but in the end it might not be as compelling as the company is portraying, said Morningstar equities analyst Jason Stevens said. Morningstar values Energy Transfer's cash-and-stock offer at $46 a share--higher than William's $44 a share offer--because of tax benefits and dividends the stock portion of the deal would offer. A merger with Southern might also force Williams to sell some of its pipeline assets in Florida to win over antitrust regulators, Stevens said.

"They'd have to sell their premiere assets," Stevens said. "It's just not as compelling an offer."

It might be difficult for Williams to go any higher than its current 10% premium to Energy Transfer's current offer, said BMO Capital Markets analyst Carl Kirst.

"Williams paying more than $44 would start facing investor blowback given the premium involved," Kirst said in an investors note.

Energy Transfer and Southern Union last week set a deal initially valued at $40 a share, four dollars lower than Williams's latest bid. Energy Transfer also agreed to sell some assets in order for the deal to pass muster with antitrust regulators.

The companies also raised the breakup fee for their agreement to $162.5 million from $92.5 million in the original agreement, another indication that a higher bid was expected. Williams in its latest bid said it would pay the breakup fee and related expenses for Southern.

Both companies had expressed willingness to assume Southern's debt, totaling $3.7 billion.

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

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Energy Transfer Ups Southern Union Bid

- Energy Transfer Ups Southern Union Bid

Tuesday, July 05, 2011
Energy Transfer Equity L.P.

Energy Transfer Equity and Southern Union have entered into an amended and restated merger agreement under which ETE will acquire SUG for $8.9 billion, including $5.1 billion in cash and ETE common units.

Under the terms of the revised agreement, which has been unanimously approved by the boards of directors of both companies, SUG shareholders can elect to exchange their common shares for $40.00 of cash or 0.903 ETE common units. The maximum cash component is 60% of the aggregate consideration and the common unit component can fluctuate between 40% and 50%. Elections in excess of either the cash or common unit limits will be subject to proration.

The revised purchase price represents a significant increase in value being paid to SUG shareholders and more than a 42% premium to the closing price of SUG common stock on June 15, 2011, the last trading day prior to the announcement of the original merger agreement.

The revised agreement provides, at the SUG shareholders' option, certainty of value through substantial cash consideration per SUG share and significant potential upside from ETE common units at a compelling fixed exchange ratio and on a tax-deferred basis. The merger is not subject to any financing contingency as ETE has secured approximately $3.3 billion in committed financing from Credit Suisse to fund the cash consideration to SUG shareholders.

"We have listened to SUG shareholders and are providing a superior yet simpler transaction, including a significant cash component and the opportunity to benefit from ETE's upside through the ownership of ETE common units," said Kelcy Warren, ETE's Chairman of the Board of Directors and largest unitholder. "The revised ETE / Southern Union agreement delivers superior value, highly compelling equity participation and certainty to close for SUG shareholders. The Southern Union board and I strongly believe that ETE is the right partner for Southern Union and that the combination of our companies is in the best interests of our investors, customers and employees."

ETE has received signed support agreements from shareholders representing 14% of SUG's total shares outstanding, who will pre-elect to receive ETE common units as their consideration, subject to the same proration as all other shareholders.

George L. Lindemann, Chairman and CEO of SUG, said, "We are pleased to be able to deliver superior value to our shareholders, with greater certainty to close, through this transaction with ETE. This deal creates strategic benefits that could not be achieved through any other industry combination. Our businesses are highly complementary and the combination will provide a broader range of services and market access that our existing and future customers demand."

Eric D. Herschmann, Vice Chairman, President and COO of SUG, added, "Our combination with ETE is the best path forward for this company and our shareholders, who will be able to elect, subject to the proration provision, to exchange their SUG shares for a guaranteed cash payment at closing or opt to participate in the potential upside of the combined companies through long-term equity ownership in ETE."

Prior to receipt of ETE's revised offer, Messrs. Lindemann and Herschmann informed ETE management and a Special Committee of SUG directors that, given their significant combined shareholdings of SUG, they had voluntarily determined to terminate their consulting and non-compete agreements with ETE included in the original merger agreement entered into on June 15, 2011. ETE has accepted the voluntary termination of those agreements.

In a sign of its commitment and confidence that it can complete this transaction in or before the first quarter of 2012, ETE has agreed to divest businesses, to the extent required by regulators, to ensure federal anti-trust approvals for the proposed ETE / SUG transaction will not delay or prohibit the closing. ETE has already begun the approval process with its HSR and Missouri regulatory filings.

In connection with the revised merger agreement, ETE also announced a binding agreement for the drop down of Southern Union Company's 50% interest in Citrus Corp., which owns 100% of the Florida Gas Transmission pipeline system, to Energy Transfer Partners, a publicly traded partnership, for $1.9 billion in cash. The drop down of this interest in Citrus Corp. is subject to the closing of ETE's acquisition of SUG and is not subject to any financing condition on the part of ETP or ETP unitholder approval.

"The drop down of Citrus to ETP allows ETE to deleverage its balance sheet upon closing and provides ETP with an interest in one of the best pipeline systems in the United States," said Mr. Warren.

Credit Suisse Securities (USA) LLC acted as exclusive financial advisor to ETE, with Latham & Watkins LLP, Bingham McCutchen LLP and Potter Anderson having acted as legal counsel. Evercore Partners and Goldman Sachs Group Inc are serving as financial advisors to the Special Committee of the board of directors of SUG. Sullivan & Cromwell LLP and Morris Nichols Arhst and Tunnell LLP are serving as legal advisors to the Special Committee. Locke Lord Bissell & Liddell LLP and Roberts & Holland LLP are serving as legal counsel to SUG.

* Energy Transfer Raises Its Offering Price for Southern Union to $8.9 Billion


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