WellDog, Excel Ink MOU to Introduce Natural Gas Services in China

- WellDog, Excel Ink MOU to Introduce Natural Gas Services in China

Wednesday, July 27, 2011
Gas Sensing Technology Corp.

WellDog and Excel Team Holdings have signed a Memorandum of Understanding under which Excel will introduce WellDog's suite of technical services to the fast-growing coalbed methane (CBM) and shale gas markets in China.

"This is an exciting moment for both companies as China is gearing up unconventional gas (CBM) activities in its 12th 5 year plan," said Peter Ho, Chairman and CTO of Excel. "Our group will be acting as a main technology bridge between top notch North America CBM technology groups such as WellDog and companies that are engaged in exploiting China's vast unconventional gas resources. WellDog's alliance with us will provide the crucial technical service support for the complex coal environment in China. We look forward to WellDog's service expansion into China soon!"

The MOU covers all of WellDog's business lines, including its award-winning pre-production gas testing services, its established pressure monitoring sales and installation services, its new permeability testing services, and its reservoir engineering services, as well as its business line based around a sustainably-focused downhole water/gas separation and re-injection technology.

"We've been examining the China market landscape for two years, and Excel is exactly the market entry channel that we've been seeking," said John M. Pope, Ph.D., president and CEO of WellDog. "Rational investigation indicates that China will become the leading unconventional gas market soon -- both as a consumer and as a producer that needs best-in-class services. We're pleased to now be able to help China unconventional gas producers make more gas with less environmental impact, as we have in many other markets."

Excel recently announced that it has opened up a new Unconventional Gas Research Centre in Harbin, via its subsidiary Multi Century Energy Technology (Beijing), to provide equipment and expertise to Coal Field Geology Bureau of Heilongjiang Province. The Research Centre will provide a leading platform for foreign CBM technology providers such as WellDog to showcase and demonstrate unique CBM expertise and penetrate into China's growing upstream CBM market.

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BG Group Signs MOU with Bank of China for $1.5B Funding

- BG Group Signs MOU with Bank of China for $1.5B Funding

Monday, June 27, 2011
BG Group plc

BG Group and Bank of China have signed a key cooperation agreement that enhances the existing close working relationship between the organizations and also allows for up to $1.5 billion of new funding options to support the Group's major growth program.

The Memorandum of Understanding (MOU) signed today builds upon existing commercial relationships between BG Group and Bank of China and confirms the intention to make extended credit facilities available that can be used to help deliver the Group's global growth plans - including its operations in China where the Group has an established commercial presence and where an initial offshore exploration program is underway.

The MOU also identifies other areas of potential cooperation including investment banking services, derivatives products, bank deposits, insurance and international settlement and trade finance facilities. Separately, BG Group already has a US$200m lending facility in place with Bank of China which is just one of a series of committed lending facilities that the company has with a group of international banks. These lending facilities in aggregate have been recently increased and extended and now total US$4.4 billion.

On signing the MOU with the Chairman of the Bank of China Gang Xiao, BG Group Chief Executive Sir Frank Chapman said, "This is a significant agreement for BG Group. It affirms and enhances our existing excellent relationship with the Bank of China. BG Group has a well established presence in China as a result of our LNG sales into this valuable and rapidly growing market, through a long-term sales and equity agreement with CNOOC in our QCLNG project in Australia, and with an extensive exploration program offshore China that has already produced a discovery.

"This agreement builds on our existing facilities with Bank of China and provides the option for substantial additional funding for our commitments in China and also our global growth program."

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Eni, PetroSA Ink Cooperation MOU for S. Africa, Abroad

- Eni, PetroSA Ink Cooperation MOU for S. Africa, Abroad

Monday, June 06, 2011
Eni S.p.A.

Eni signed with South Africa's State-owned oil company PetroSA (Petroleum Oil and Gas Corporation of South Africa) a Memorandum of Understanding establishing mutual cooperation between the companies in the country and abroad.

The parties will evaluate the eventual acquisition by either party of participating interests in upstream projects for the development of both conventional and unconventional hydrocarbons. Moreover, the parties will evaluate the opportunity to participate jointly in projects in other African countries.

According to the MoU, Eni could also supply crude oil and refined products to the South African market, which is characterized by a fast-growing demand for such products.

Eni and PetroSA will also evaluate the possibility of leasing the Saldanha storage facility strategically located for the Asian, American and European markets.

Finally, the parties will also study joint initiatives for LNG import and will evaluate the potential for long-term LNG supplies to be provided by Eni to PetroSA for both power generation and GTL in South Africa, together with the possibility for Eni to support the realization of possible new power plants.

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East West Petroleum Enters MOU to Develop Romania Blocks

- East West Petroleum Enters MOU to Develop Romania Blocks

Wednesday, May 25, 2011
East West Petroleum Corp.

East West Petroleum and Naftna Industrija Srbije j.s.c. Novi Sad ("NIS") announced the final stage of conclusion of agreements for upstream cooperation which is to rapidly advance the development of its four Romanian onshore blocks EX-2 (Tria), EX-3 (Baile Felix), EX-7 (Periam) and EX-8 (Biled). The joint exploration programs planned will include the collection and processing of approximately 900 km of 2D and 600 sq km of 3D seismic data with a minimum of 12 wells to be drilled on the four blocks in Romania. The terms of the agreement are: NIS will fully fund all environmental work, 2D and 3D seismic acquisition and processing, and the drilling of 12 wells, to earn an 85% participation interest. NIS will also refund 100% of EWP's sunk costs which total C$525,000 and EWP will retain a 15% carried interest to commercial production on all four blocks.

In an earlier agreement the Company signed Concession Agreements for four onshore exploration blocks EX-2 (Tria) EX-3 (Baile Felix), EX-7 (Periam) and EX-8 (Biled) with the Romanian National Agency of Mineral Resources.

The new petroleum licenses are located in the western region of Romania within the prolific Pannonian Basin. The blocks have a combined area of approximately 1,000,000 acres. The blocks, which contain multiple exploration targets, lie within a major producing region of western Romania. The blocks have been only moderately explored, with previous exploration on the acreage generally limited to shallow structural traps. The Company has identified a number of structural and stratigraphic leads in the deeper section and plans to focus its exploration activities on the conventional oil and gas potential in addition to unconventional shale gas potential.

EWP and NIS plan to cooperate extensively to explore for and produce oil and gas from the four concession areas. Both conventional and unconventional resource potential has been identified on the acreage, which is situated close to numerous oil and gas fields. The joint work programs planned will include the acquisition and processing of approximately 900 km of 2D and 600 sq km of 3D seismic data during the first two years of operations. The new seismic data will be used to high-grade a number of prospective conventional oil and gas leads already identified on the acreage, to further study the unconventional shale potential and select drilling sites. Under the terms of the agreement East West will retain a 15% carried interest through Phase 1 (compulsory) and Phase 2 (optional) exploration periods as well as a carried interest on any discovery through to the declaration of commerciality. EWP will retain a 15% share of all production realized from the four concessions.

NIS is a leading explorer in this sector of the Pannonian Basin. NIS is currently carrying out extensive E&P operation in the Vojvodina region of northern Serbia, immediately adjacent to the Romanian Periam and Biled Concessions. NIS's operational capabilities and knowledge of regional geology are expected to contribute significantly to the success of the Romanian exploration programs.

The exploration programs are subject to final ratification of the Concession Agreements by the Government. The farmout to NIS will be subject to further agreements and approval of NAMR, which is expected to take place soon after the Government of Romanian ratifies the Concessions.

"The cooperation agreement with East West will allow NIS to expand its presence outside Serbia and to implement NIS's strategy of becoming an active player in the Balkan energy market. Participation of NIS in the project as operator will allow us to further our experience in the region and to apply innovative technologies for developing conventional and unconventional resources," commented Kiril Kravchenko, NIS Chairman of the Management Board.

Denis Sugaipov, the COO of NIS Company said, "The deal with East West Petroleum has several operational synergies for both companies and benefits for the Romanian energy sector. NIS's geological knowledge of Pannonian basin and its success in development can be applied to an area which is analogous to the Serbian North Banat region. In addition, EWP can contribute its technical expertise in unconventional resources. I hope that this deal will show results in the near future and contribute to the development of the Romanian energy sector, enabling the sustainable development of the entire region."

David Sidoo, Chairman of East West commented, "These agreements are the culmination of many months of hard work and we are confident that in Naftna Industrija Srbije, a subsidiary of Gazprom Neft, we have sourced a key and strategic partner, with substantial operating experience and the necessary financial and operating capabilities which can be applied to the Romanian concessions and can very quickly advance with the development of the Romanian concessions."

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NC KMG, KMG EP Sign MOU for Joint Participation in Caspian Sea

- NC KMG, KMG EP Sign MOU for Joint Participation in Caspian Sea

Wednesday, May 25, 2011
JSC KazMunaiGas Exploration Production

JSC NC KazMunaiGas (NC KMG) and JSC KMG EP (KMG EP) have signed a Memorandum of Understanding, providing KMG EP with access to the detailed geophysical, financial and economic data of a number of oil and gas projects, including those located in the Kazakhstan sector of the Caspian sea. The list of projects includes, in particular, the offshore blocks Zhambyl, Ustyurt, Zhenis, Godina, С-1, С-2 as well as an onshore block Urikhtau. By agreement between the two parties the list of oil and gas projects may be expanded.

On the basis of the provided data KMG EP will conduct a technical, economic and investment evaluation of the above-stated projects to consider the Company's participation in these projects, subject to negotiations with NC KMG and on the same commercial terms as other participants.

Kairgeldy Kabyldin, Chairman of the Management Board of NC KMG noted, "The engagement of the resources and experience of KMG EP in the joint development of the Caspian sea shelf along with the large international oil companies is an important step for the KazMunaiGas group of companies. Enhanced participation of the National Company KMG in the offshore projects corresponds to the strategic interests of the country in the oil and gas sector."

Askar Balzhanov, Chief Executive Officer of KMG EP said, "Signing of the Memorandum is an important step in implementation of our Strategy which envisages participation in the development of the Caspian sea shelf as a way to increase the Company's resource base and hydrocarbons production. KMG EP possesses the necessary technical and financial resources for carrying out offshore oil operations."

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Pride, Ensco Enter MOU in Merger Lawsuit

- Pride, Ensco Enter MOU in Merger Lawsuit

Friday, May 20, 2011
Pride International Inc

Pride announced it and the other named defendants in the previously disclosed stockholder class action lawsuits filed in the Delaware Court of Chancery related to the proposed merger with Ensco entered into a memorandum of understanding with the plaintiffs to settle the litigation. As part of the memorandum of understanding and subject to the approval of the Ensco board of directors, Pride and Ensco agreed to, among other things, enter into an amendment to the merger agreement.

The amendment would reduce the fee payable by Pride in connection with certain terminations of the merger agreement to $195 million from $260 million. The amendment also would shorten the "tail period" for certain transactions that could trigger a termination fee from 12 months to nine months after termination. Under the amendment, the $195 million fee would be payable by Pride if the agreement is terminated under specified circumstances, including (1) the decision by the Pride board of directors to accept a superior proposal, (2) an adverse change in the recommendation of the Pride board of directors or (3) a failure to obtain approval by Pride stockholders after public disclosure of an alternative business combination proposal before the stockholder meeting and either the Pride board of directors determines such proposal to be a superior proposal or, within nine months after termination of the merger agreement, Pride enters into a definitive agreement or consummates an alternative business combination proposal.

The amendment also would eliminate the "force the vote" provision applicable to Pride such that Pride would not be required to submit the adoption of the merger agreement to its stockholders if the Pride board of directors made an adverse recommendation change.

Pursuant to the memorandum of understanding, Pride has also agreed to make certain additional disclosures related to the proposed merger in an SEC filing.

The memorandum of understanding also provides, among other things, that the parties will seek to enter into a stipulation of settlement which provides for the release of certain claims held by such class. The stipulation of the settlement will be subject to customary conditions, including court approval. There can be no assurance that the parties will ultimately enter into a stipulation of settlement that receives court approval. The memorandum of understanding is also subject to the approval of the Ensco board of directors.

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ONGC, Uzbekneftegaz Enter MOU

- ONGC, Uzbekneftegaz Enter MOU

Wednesday, May 18, 2011
ONGC Videsh Ltd.

ONGC Videsh (OVL) entered in to a Memorandum of Understanding (MOU) with Uzbekneftegaz (UNG), the National Oil Company of Uzbekistan for Joint Cooperation in the Upstream E&P sector of Uzbekistan as well as third countries. The MOU was signed on May 17, 2011 by Mr. Satpal Garg, Director (Finance) of OVL and Mr. Shokir Faizullayev, Chairman, Uzbekneftegaz in the presence of H.E. Mr. Rustam Azimov, First Deputy Prime Minister, Minister of Finance of Uzbekistan.

Uzbekistan has long been an important gas producer and ranks 13th in terms of global gas supply. The MOU provides for the formation of Joint Working Group consisting of experts from both the companies for identifying specific oil & gas fields in Uzbekistan and the areas in third countries for E&P activities through Joint Cooperation.

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Petrobas Inks MOU with Chinese Oil Cos

Petrobas Inks MOU with Chinese Oil Cos

Friday, April 15, 2011
Petrobras

Petrobras has signed a Memorandum of Understanding (MOU) with the Chinese company Sinochem Corporation and a General Technological Cooperation Agreement (GTCA) with Sinopec.

The MOU signed with Sinochem includes a strategic cooperation between the parties in oil and gas exploration and production in Brazil and abroad; technological cooperation for the development of projects aimed at increasing oil recovery; export of oil and other products.

The objective of the GTCA signed with Sinopec is the exchange of experiences and knowledge in technological areas with a focus on Geophysics, Geology, Reservoir Engineering and Assessment aimed at increasing oil recovery of the reservoirs of both Companies.

The agreements are designed to enhance cooperation between the activities of the companies, both in Brazil and abroad, in areas of common interest and are aimed at developing a strategic cooperation in activities of the oil and gas industry.

Eni Inks MoU for Ukraine Upstream Cooperation

Eni Inks MoU for Ukraine Upstream Cooperation

Monday, March 28, 2011
Eni S.p.A

The Minister of Ecology and Natural Resources Mykola Zlochevskiy of Ukraine and Eni CEO Paolo Scaroni signed in Kiev a Memorandum of Understanding defining the framework for possible cooperation initiatives in exploration and production of hydrocarbons in Ukraine.

The parties agreed to collaborate on the study of initiatives in conventional and unconventional oil and gas on the basis of a mutual sharing of data, competencies and technology. They also arranged to set up a joint working team that will begin the evaluation of such opportunities.

During his visit to Kiev, Eni CEO Paolo Scaroni also had the opportunity to meet with the Minister of Energy and Coal Industry Yuriy Boyko to discuss possible cooperation in Ukrainian upstream sector.