Apache Corporation (NYSE, Nasdaq: APA) has announced it has completed the previously announced sale of its Gulf of Mexico Shelf operations and properties to Fieldwood Energy LLC, a portfolio company of Riverstone Holdings, for $3.75 billion in cash (subject to customary post-closing adjustments) and assumption of liabilities for future abandonment costs of the properties with a discounted value of $1.5 billion.

Apache retained 50 percent of its ownership interest in all exploration blocks and in horizons below production in developed blocks, where high-potential deep hydrocarbon plays are being tested.

Portfolio rebalancing progress

"Completing this transaction is a significant step toward our goal of rebalancing Apache's portfolio to focus on assets that can generate strong returns and drive more predictable production growth, including our deep inventory of onshore liquids assets in North America," said G. Steven Farris, chairman and chief executive officer.

On a pro forma basis accounting for the Fieldwood transaction and the previously announced  partnership with Sinopec International Exploration and Production Corp. in Egypt,  Apache's second-quarter 2013 production from North American onshore assets and from Egypt would have comprised approximately 55 percent and 15 percent, respectively.  In 2010, onshore North America contributed 31 percent of Apache's overall production, Egypt represented 25 percent and the Gulf of Mexico Shelf represented 17 percent.

Apache also announced that it has completed the previously announced sale of oil and gas producing properties in the Nevis, North Grant Lands and South Grant Lands areas of western Alberta, Canada, to Ember Resources Inc., a private Canadian company, for $214 million. Proceeds from the Ember transaction are subject to customary post-closing adjustments.

Including the Fieldwood and Ember transactions, the partnership with Sinopec and two additional agreements to sell oil and gas producing properties in western Canada, Apache has completed or announced more than $7 billion in asset sales year-to-date.

"In addition to enhancing our production and return profile, these transactions enable Apache to retain our an optimal capital structure for growth by reducing debt, enhance shareholder value through a 30-million-share repurchase authorization, and fund future capital expenditures including high-impact international projects," Farris said.

Chevron Technology Ventures LLC (CTV) has announced that it has launched CTV Fund V, a $90 million venture capital fund to invest in early- to mid-stage companies and in limited partnership funds. Investments from CTV Fund V will focus on companies developing emerging technologies that have the potential to improve Chevron’s oil and gas base business performance or create new opportunities for growth.

“We provide an excellent source of innovative technologies that can deliver value to Chevron’s business units when applied,” said CTV President Barbara Burger. “We are using venture capital as a conduit for early adoption of emerging technologies and to build a pipeline of innovation for Chevron.”

CTV-managed strategic investments prior to Fund V have supported a wide range of companies and venture capital funds. Partner technologies are used across Chevron’s Upstream and Downstream business units, producing substantial earnings for the company. CTV screens more than 400 opportunities per year, selecting one to three companies in which to invest. The company has a current portfolio of 37 companies.

Formed in June 1999, CTV invests in technology start-up companies whose innovations could significantly benefit Chevron’s existing businesses and lead to new growth opportunities. CTV identifies, sponsors and demonstrates emerging technology and champions its integration into Chevron.

 has announced that it has launched CTV Fund V, a $90 million venture capital fund to invest in early- to mid-stage companies and in limited partnership funds. Investments from CTV Fund V will focus on companies developing emerging technologies that have the potential to improve Chevron’s oil and gas base business performance or create new opportunities for growth.

“We provide an excellent source of innovative technologies that can deliver value to Chevron’s business units when applied,” said CTV President Barbara Burger. “We are using venture capital as a conduit for early adoption of emerging technologies and to build a pipeline of innovation for Chevron.”

CTV-managed strategic investments prior to Fund V have supported a wide range of companies and venture capital funds. Partner technologies are used across Chevron’s Upstream and Downstream business units, producing substantial earnings for the company. CTV screens more than 400 opportunities per year, selecting one to three companies in which to invest. The company has a current portfolio of 37 companies.

Formed in June 1999, CTV invests in technology start-up companies whose innovations could significantly benefit Chevron’s existing businesses and lead to new growth opportunities. CTV identifies, sponsors and demonstrates emerging technology and champions its integration into Chevron.

Anadarko Petroleum Corporation (NYSE: APC) has announced it has entered into a definitive agreement with ONGC Videsh Ltd. (OVL), a wholly owned subsidiary of Oil and Natural Gas Corporation Limited, to sell a 10-percent interest in Mozambique's Offshore Area 1 (Area 1) for $2.64 billion in cash. Anadarko will remain the operator of Area 1 with a working interest of 26.5 percent.

"This transaction demonstrates our continuing ability to create substantial value through exploration and to again accelerate the value of our longer-dated projects through attractive monetizations and third-party capital," Anadarko Chairman, President and CEO Al Walker said. "Mozambique LNG is a premier global energy project, and we look forward to working with our partners and the government to advance this world-class development.

"As the operator of Area 1, we are very pleased to have reached this agreement with OVL, which values our pre-transaction interest at more than $9.6 billion. We expect to use the net proceeds from this transaction to further accelerate the short- and intermediate-term oil and liquids opportunities we have in the Wattenberg field, Eagleford Shale, Permian and Powder River basins, as well as the Gulf of Mexico and other evolving plays in our portfolio. Our objective with this allocation of capital will be to further increase our cash-flow growth with attractive wellhead margins, while providing additional value to our shareholders as evidenced by our recent dividend increase and continued portfolio-management activities."

The transaction is expected to close around the end of 2013, and is subject to existing preferential rights, governmental approvals and other customary closing conditions.

Area 1 is operated by Anadarko Moçambique Area 1 Limitada (a wholly owned indirect subsidiary of Anadarko) and is located in Mozambique's deepwater Rovuma Basin. The block contains the Prosperidade and Golfinho/Atum natural gas complexes that combined hold an estimated 35 to 65-plus trillion cubic feet (Tcf) of recoverable natural gas resources. In cooperation with the Government of Mozambique, Anadarko, its partners, and Eni (as the operator of the adjacent Area 4 block) continue to advance the development of an LNG park with first LNG cargoes expected in 2018.

Anadarko's partners in Area 1 include Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and PTT Exploration & Production Plc (8.5 percent). Empresa Nacional de Hidrocarbonetos, E.P.'s (ENH) 15-percent interest is carried through the exploration phase.

At a meeting held on August 16 , Petrobras' Board of Directors approved the following asset sale transactions totaling US$ 2.1 billion:

1. Sale of a 100% interest in Petroquímica Innova S.A. (Innova) to Videolar S.A. and its majority shareholder for R$ 870 million (approximately US$ 372 million1), the buyer to take on debt of approximately R$ 23 million.

The transaction will be put to a vote at an Extraordinary Shareholders' Meeting to be convened in due course and, based on the opinion of the Brazilian Securities Commission, will not involve any preemptive rights for the acquisition of Innova shares by Petrobras shareholders.

Innova is a second-generation petrochemical company sited in the Petrochemical Zone of Triunfo, in the state of Rio Grande do Sul. It produces ethylbenzene, styrene and polystyrene, used in the manufacture of home appliances, disposables, elastomers, packaging, paints and fiberglass.

Completion of the transaction is subject to certain standard pre-conditions, including approval by the Brazilian Antitrust Authority (Cade).

2. Sale of the 35% stake held by Petrobras in block BC-10, known as Parque das Conchas, to the Sinochem Group for US$ 1.54 billion.

Block BC-10 is located in the Campos Basin, some 100 km off the south coast of the state of Espírito Santo, and partners include Shell, the operator with a 50% stake, and ONGC with 15%. These partners have preemptive rights which can be exercised within 30 days after notification.

Completion of the transaction is subject to the certain standard pre-conditions, including approval by the Brazilian Antitrust Authority (Cade), Brazil's National Petroleum, Natural Gasand Biofuels Agency (ANP) and China's National Development and Reform Commission (NDRC).

3. Signing of farm-out contracts amounting to US$ 185 million related to 100% of the Petrobras stake in blocks MC 613 (Coulomb), GB 244 (Cottonwood) and EW 910, all in production and located in the US Gulf of Mexico.

Petrobras has a 33% stake in the Coulomb field; the remaining 67% is held by Shell, which is the operator. The field is located in Mississippi Canyon Block 613 (MC 613), some 130 km off the coast of Louisiana.

Petrobras has a 100% stake in the Cottonwood field located in the Garden Banks Block 244 (GB 244), some 220 km off the coast of Texas.

Petrobras has a 60% stake in the EW910 asset; the remaining 40% is held by W&T Offshore, which is the operator.

The transaction is subject to third party preemptive rights and approval by the Bureau of Ocean Energy Management (BOEM).

Firm represents Teekay Shuttle Tanker Finance LLC in issuing 10-year senior secured notes for delivery of a pair of identical tankers built in Korea to work Brazil’s  offshore oil fields

In its latest major transaction in the service of Brazil’s  burgeoning offshore energy sector, Milbank, Tweed, Hadley & McCloy has advised Teekay Shuttle Tanker Finance LLC, as issuer, in the $174,150,000 financing of two Suezmax-class shuttle tankers designed to operate between Brazil’s  offshore oil fields and coastal refineries and terminals.

The bond financing is to be split into two equal tranches and funded through two issuances the first taking place this month, the second scheduled for November, prior to the delivery of each tanker.  Proceeds from the secured 10-year notes will be used to fund delivery of the two vessels.

The two tankers are being built by Samsung Heavy Industries Co. Ltd. of South Korea and will be under 10-year charter to BG in Brazil.  Each identical tanker, Bossa Nova Spirit and Sertanejo Spirit, is 282 meters in length and with a capacity of 167,500 cubic meters.

Teekay Shuttle Tanker Finance LLC is a wholly owned subsidiary of Teekay Offshore Partners LP, one of the world’s leading owners and operators of shuttle tankers, which since the 1970s has provided an alternative to conventional pipelines for transferring oil from offshore to storage or refining facilities. Shuttle tanker technology permits their operation in deep water and harsh or remote locations, which has earned them the moniker “floating pipelines.”

Project Finance partner Daniel Bartfeld, who co-led Milbank’s  team, says that the successful notes offering for the two shuttle tankers marks a significant milestone and is noteworthy for its multi-vessel and multi-issuance structure, which we believe is a first in this industry.  We’re very pleased to have led in this private placement for Teekay.”

Co-lead partner Jay Grushkin, a member of Milbank’s Structured Finance group, added, This is yet another example of the willingness and appetite of the traditional private placement market to fund non-traditional assets.”

Also working on the transaction were Milbank associates Caroline Conway, Sean O’Neill and Mikhel Schecter.

Patrick Lagrange will lead the charge to build the investment arm of CSA

Continental Shelf Investment Capital, Inc. (CSIC) is pleased to announce that Patrick Lagrange is joining the firm as its new Managing Director. Lagrange will help manage CSIC’s existing investments in the coastal, ocean, and subsea industries and look for new opportunities.  Working with fledgling and established entrepreneurs alike, Lagrange and CSIC will work to help entrepreneurs develop their concepts and ideas into great businesses.   “CSIC’s mission of supporting and growing companies with the capital needed to get to the next stage is exciting.  I’m thrilled to be part of this effort,” said Lagrange.

Hailing from New Orleans, Lagrange brings with him nearly two decades of experience investing in and advising companies in a variety of capital markets, M&A, and restructuring transactions.  Lagrange began his career as an attorney working for the oil industry through the early 1990s.  He then made a career shift that would allow him to pursue his interest in finance by earning an MBA from New York University.  After that he worked with several leading investment and financial advisory firms in the Northeast.  He joins CSIC from Carl Marks Advisory Group LLC, a leading middle market New York-based investment bank and financial advisory firm where he served as CEO of the firm’s broker/dealer affiliate and head of its strategic research unit.

Lagrange has played a leading role in the corporate restructuring industry.  In 2009 – 2010, he served as President and Chairman of the Turnaround Management Association, the premier global professional organization dedicated to corporate renewal with over 9000 members in 47 chapters in the Americas, Europe, Asia and Africa. 

In addition to his work at CSIC, Mr. Lagrange will serve as President of Pelagic Strategic Partners LLC (Pelagic).  Pelagic is a newly formed CSA affiliate that will bring high-quality strategic and management consulting services to small-growth stage companies in the coastal, ocean, and subsea industries.  “Pelagic will work in partnership with CSIC to help entrepreneurs build great companies by combining its capital with Pelagic’s management services,” said Lagrange.

NYC-based PIRA Energy Group reports that global Asian oil markets remain supported on a global basis. On the week, U.S. stocks fell, split about equally between crude and products.  In Japan, crude stocks drew on higher runs and contained imports. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following: 

Asian Oil Markets Remain Supported on a Global Basis

Oil prices remain at the top of their trading range with firmness being supported by tightened crude balances which are being fueled by supply losses from producers such as Libya and Iraq and ongoing outages from Syria and Nigeria. All told, the market is currently at its maximum point of physical strength, with high runs, supply losses and crude stock declines. 

Overall Commercial Inventories Decline

U.S. stocks fell for the week ending August 16, split about equally between crude and products and matching last year's inventory decline for the same week. This left the inventory excess 1.9% above year ago levels. The bulk of the excess inventory is in gasoline. Overall adjusted oil demand growth is now running just 0.9% above year ago levels. This is the second week in a row that demand growth was no higher than 1% after three earlier weeks of near 3% growth. Some of PIRA's other energy indicators of economic growth (e.g. electricity demand) have also been weakening, which is not a good sign for the economy. 

Two Weeks of Japanese S/D Data

Two weeks of data were reported this past week due to the mid-August hiatus. Crude stocks drew on higher runs and contained imports. Gasoline demand was expectedly strong. Conversely, gasoil demand eased sharply due to the typical mid-August vacation impacts and stocks built, even with higher exports. Kerosene stocks continued to build seasonally, with the average build rate over the last two weeks being relatively high. 

Slow U.S. Stock Building

U.S. propane storage is building rather slowly pushing its price higher going into the crop drying and heating seasons. Butane demand will gain for gasoline blending while ethane continues to be impacted by steam cracker outages. 

Ethanol Prices Advance

U.S. ethanol prices rose the week ending August 16 due to higher corn costs and a tighter market with lower inventories. Prices were also supported by concerns that output will decrease prior to the next harvest because of plant maintenance and corn shortages. RIN prices rebounded after falling to a three-month low in the previous week.

Ethanol Output Decreases

U.S. ethanol production declined to 844 MB/D the week ending August 16, the second lowest level since April, and down from 857 MB/D in the preceding week. Due to dwindling supplies, some ethanol producers have contracted to barge in corn from as far south as Louisiana, where the 2013/2014 harvest has already started. 

The information above is part of PIRA Energy Group's weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Apache Corporation (NYSE, Nasdaq: APA) has announced it has agreed to sell oil and gas producing properties in the Nevis, North Grant Lands and South Grant Lands areas of western Alberta, Canada, to Ember Resources Inc., a private Canadian company, for US$214 million (CAN$220 million).

"Going forward, Apache is focused on growing our liquids production from a deep inventory of crude oil- and liquids-rich opportunities that generate attractive rates of return on our extensive remaining acreage in Canada's Western Sedimentary Basin," said Rodney J. Eichler, president and chief operating officer. "We also remain focused on advancing the Kitimat LNG project to monetize large unconventional resources in the Liard and Horn River basins in northern British Columbia.

"This transaction is one element of a comprehensive review of Apache's portfolio to determine which assets make the most sense for Apache to own given our growth and return objectives and which assets are better owned by others," Eichler said. "The Nevis, North Grant Lands and South Grant Lands assets fit in the latter category."

Apache's Nevis, North Grant Lands and South Grant Lands assets

The assets comprise 621,000 gross acres (530,000 net acres) and more than 2,700 wells that had average net production of 67 million cubic feet of gas and 237 barrels of liquid hydrocarbons per day from late Cretaceous sands and coal seams during the second quarter of 2013. Apache will retain 100 percent working interest in horizons below the Cretaceous, such as potential Duvernay and Nisku, in Nevis and North Grant Lands.

The effective date of the transaction is April 1, 2013, and it is expected to be completed during the third quarter, subject to customary regulatory approvals and other closing conditions.

"I commend the employees who have worked these assets for many years of safe and environmentally responsible operations," Eichler said.

Portfolio Rebalancing

Apache previously announced plans to divest $4 billion in assets by year-end 2013. The company intends to use proceeds from the asset divestitures to reduce debt and enhance financial flexibility and to repurchase Apache common shares under a 30- million-share repurchase program authorized by the Board of Directors earlier this year.

In July, Apache announced an agreement to sell its Gulf of Mexico Shelf operations and properties to Fieldwood Energy LLC (Fieldwood), an affiliate of Riverstone Holdings, for cash proceeds of $3.75 billion. In addition, Fieldwood will assume all asset retirement obligations for these properties, which, as of June 30, 2013, Apache estimated at a discounted value of approximately $1.5 billion.

Noble Corporation (NYSE: NE) announces that its Board of Directors has approved a plan to separate a business comprised of many of its standard specification drilling units, resulting in the creation of two separate and highly focused offshore drilling companies.  The drilling units that would be owned and operated by the new company comprise most of the standard specification drilling units in the Noble fleet, including five drillships, three semisubmersibles, 34 jackups, two submersibles, and one FPSO.  The new company would also be responsible for the Hibernia platform operations.  Noble will continue to own and operate its high-specification assets with particular operating focus in deepwater and ultra-deepwater markets for drillships and semisubmersibles and harsh environment and high-specification markets for jackups.

The plan approved by the Board of Directors involves the separation of the standard specification business through the distribution of the shares of the new company to Noble shareholders in a spin-off that would be tax-free to shareholders.  Subject to business, market, regulatory and other considerations, the separation may be preceded by an initial public offering of up to 20 percent of the shares of the new company. Consummation of the transaction is contingent upon the receipt of a tax ruling from the IRS, which Noble expects to receive soon.  If Noble proceeds with the IPO as part of the spin-off, Noble expects that the new company would file a registration statement for the IPO with the U.S. Securities and Exchange Commission in late 2013 or early 2014.  The transaction is also subject to the approval of Noble's shareholders, which the company anticipates seeking in the second quarter of 2014.  Noble anticipates that the spin-off would be completed by the end of 2014.  Noble expects that the new company would use the net proceeds from borrowings by the new company (and the IPO if undertaken) to repay to Noble the debt the new company would incur to Noble in order to acquire the standard specification business and assets from Noble.  Noble expects that, in turn, it would use such proceeds to repay outstanding indebtedness of Noble and its subsidiaries.

The purpose of the separation is to:

•    separate Noble's existing rig fleet into high specification and deepwater and ultra-deepwater assets, which will remain with Noble, and many standard specification assets, which will comprise the new company's fleet, as set forth in the attachment to this release;

•    allow each company to have a more focused business and operational strategy;

•    enhance each company's growth potential and overall valuation of its assets;

•    provide each company with a greater ability to make business and operational decisions in the best interests of its particular business and to allocate capital and corporate resources with a focus on achieving its strategic priorities;

•    better utilize the professionalism and skills of Noble's team and culture to deliver excellent service, safety and operational integrity to its customers;

•    improve each company's ability to attract and retain individuals with the appropriate skill sets as well as to better align compensation and incentives with the performance of these different businesses; and

•    allow the financial markets and investors to evaluate each company more effectively.

David W. Williams, who will remain as Chairman, President and Chief Executive Officer of Noble, said, "The purpose of the separation is for Noble to move forward with our development as a robust high specification and deepwater drilling company through continued execution of newbuilds and fleet enhancements.  By separating these two businesses, we believe each company will be able to better leverage the overall value of its fleet by focusing on the drivers of its particular business."

There can be no assurance that Noble's proposed plan will lead to an initial public offering or spin-off of the new company or any other transaction, or that if any transaction is pursued, that it will be consummated. This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities. This announcement is being issued pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933, as amended.

Due to limitations imposed by U.S. securities laws, Noble will not hold a conference call to discuss the contents of this release.

For more detailed information click here

NYC-based PIRA Energy Group reports that Brent crude prices have moved higher and are likely to stay strong. On the week, U.S. commercial stocks increased. In Japan, crude imports rose sufficiently to produce a moderate stock build. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Bullish Oil Prices

It is hard not to be bullish oil prices with the global economy gradually improving, tight physical oil markets and MENA turmoil, which is already substantially reducing global oil supplies and has the potential to reduce supplies further. Current positioning and likely September deflationary type headlines, due in part to a challenging calendar, but also the startup of Iranian nuclear negotiations, pose downside risks to oil prices. Yet, the burgeoning momentum to own oil seems poised to push oil prices higher for now with SPR chatter somewhat limiting the upside.

Slight U.S. Commercial Stock Build

Commercial inventories increased for the week ending August 30 as product stocks swung from a draw the week before to a build. Added supply resulted from reported product demand weakening and product output increasing. This more than offset a product import decline. Last year for the same week, product stocks declined as refinery operations were curtailed by Hurricane Isaac. Hence the year on year product stock excess widened with the bulk of the excess in gasoline and other products.

Japanese Crude Runs Decline as Turnarounds Gear Up

Crude runs began to decline as turnarounds started to gear up and crude imports rose sufficiently to produce a moderate crude stock build. Gasoline demand eased modestly, while gasoil demand remained strong. Stocks of both posted only modest changes on the week. Kerosene demand perked up and with a lower yield the stock build rate slowed. Refinery margins remain very poor.

Saudi Formula Crude Prices for October Tightens for Asia, Less Aggressive in Europe

Saudi’s formula prices for October were recently released. In Asia, differentials were raised most aggressively on lighter grades, but the differential for Arab heavy was left unchanged. While the price adjustment was termed "less aggressive" than market expectations, refiners still cannot be too pleased given the woefully weak refining margins, particularly for topping configurations.

Cushing Stocks Drop 15 Million Barrels in Last 9 Weeks

Crude stocks at Cushing, Oklahoma have fallen for nine consecutive weeks – a total of 15 million barrels since late June. Southern price spreads remained tight, with WTI discounts to Atlantic Basin light crudes averaging $4-5/Bbl in August. Northern spreads were mixed, as oil sands upgrader maintenance restricted synthetic crude supplies while raising bitumen production.

Slow Stock Building in U.S.

Propane building season continues but at a slow pace, despite the latest week's surge, in the U.S. as exports remain quite high, petchem feed usage is ongoing and the crop drying season is just weeks away. Europe is starting to attract cargoes as North Sea maintenance continues and petchem feedstock usage is quite favorable. The Northern Hemisphere needs to start preparing for the upcoming heating season.

U.S. Ethanol Prices Soar

U.S. ethanol prices rose to a two-month the week ending August 30. The jump was primarily due to the scarcity of corn in the Midwest, causing ethanol production to drop to a 21-week low. Also providing support were petroleum prices which rose to a two-year high.

The information above is part of PIRA Energy Group's weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Statoil ASA (OSE: STL, NYSE: STO) has signed an agreement to divest minority interests in the Gullfaks and Gudrun fields offshore Norway and exit the non-core, non-operated Schiehallion and Rosebank fields, West of Shetlands.

In addition to the cash consideration of USD 2.65 billion, the transaction with Austrian oil and gas company OMV includes a contingent payment and involves a partnership between the two companies. Statoil reduces its ownership share in Gullfaks from 70% to 51% and from 75% to 51% in Gudrun, and retains its operatorships on both fields. 

"Through this transaction, Statoil captures value created through asset development and unlocks capital for investment in high return projects in core areas. This includes our recent discoveries on the Norwegian continental shelf. We continue to deliver on our strategy to create value through active portfolio management and to further increase our financial flexibility," says Helge Lund, Statoil's president and chief executive officer.

Statoil expects to recognize a gain from the transaction estimated to be between USD 1.3-1.5 billion, to be adjusted for activity between the effective date 1 January 2013 and the closing date.

The transaction will enable Statoil to redeploy around USD 7 billion of capital expenditure, around USD 5.5 billion of which is pre-2020 (excluding potential investments in the recent Shetland/Lista discovery at Gullfaks).

Entering partnership

OMV is an established company on both the Norwegian (NCS) and the UK (UKCS) continental shelves. Statoil and OMV enter into a partnership including potential cooperation on exploration opportunities across Norway, the UK and the Faroese Islands as well as the development of enhanced oil recovery (EOR) technologies.

"Statoil is pleased to strengthen the partnership with OMV on the Norwegian continental shelf. OMV is already a valued partner in Edvard Grieg and Aasta Hansteen, and this agreement enables our companies to develop the cooperation further," says Lund.

"I believe this is a win-win deal for Statoil and OMV. Apart from the assets, I am especially proud that we can partner with a world-class leader in offshore and EOR technology," says Gerhard Roiss, chief executive officer of OMV.

Demonstrating value of Statoil's NCS and UKCS portfolio

The transaction builds on Statoil's offshore competence and experience, and track record of realising value through asset development and portfolio management.

As operator of the Gullfaks field, Statoil has added substantial value through successful efforts to maximise oil recovery and recently announced a new discovery in the Shetland/Lista formation. As part of the transaction, Statoil captures upside from this discovery through a contingent payment of 6 USD per barrel of oil equivalent of reserves developed.

Gudrun is on track for production start-up in the first quarter of 2014. As the operator, Statoil is executing the development on time and below original cost estimates. Today's transaction demonstrates the value of efficient project execution in an asset where Statoil increased its ownership in 2010.

Statoil remains committed to growing its business on the UKCS and is the operator of large field developments including the Mariner project and exploration licenses. By divesting non-core, non-operated developments in the West of Shetlands, Statoil further focuses its UK portfolio.

Statoil's production from the divested assets in the first half of 2013 was approximately 26,000 barrels of oil equivalent per day from Gullfaks. Production impact for Statoil from the transaction is estimated to around 40,000 barrels of equity oil equivalent per day in 2014 and 60,000 per day in 2016.

The effective date for the transaction is 1 January 2013. Closing is expected around year end 2013, pending government and partner approvals.

Total proceeds of around USD 15 billion have been realised through divestments by Statoil since 2010, enabling the company to redeploy resources to core, high-return upstream projects.

Bank of America Merrill Lynch and Lambert Energy Advisory Limited were financial advisors to Statoil on this transaction.

ConocoPhillips (NYSE: COP) has announced that it has closed a transaction with the National Gas Company of Trinidad and Tobago Limited (NGC) for the sale of its wholly owned subsidiary, Trinidad and Tobago Holdings LLC, for a total consideration of $600 million plus customary adjustments.

Trinidad and Tobago Holdings LLC holds a 39 percent interest in Phoenix Park Gas Processors Limited (PPGPL). PPGPL operates a gas processing and natural gas liquids fractionation facility located at Point Lisas, Trinidad.

“The sale of this noncore, midstream asset represents further progress in strengthening and focusing the ConocoPhillips portfolio, and advances the strategic interests of both NGC and ConocoPhillips,” said Don Wallette, executive vice president, Commercial, Business Development and Corporate Planning. “We appreciate the long and productive relationship we have had with NGC.”

ConocoPhillips expects to recognize an after-tax gain of approximately $290 million for the sale.

Including this transaction, ConocoPhillips has announced expected proceeds of approximately $14.1 billion from the sale of nonstrategic assets as part of its 2012-13 asset disposition program. Through June 30, 2013, the company has received $3.8 billion in proceeds from completed sales, with the remainder expected by year-end 2013. These proceeds will be available for general corporate purposes and allow the company to advance existing growth programs.

NYC-based PIRA Energy Group reports that U.S. crude stocks declined relative to the same week last year. On the week, U.S. commercial inventories declined, while Japanese stocks rose. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

U.S. Commercial Inventories Decline

Commercial inventories declined for the week ending September 13 led by lower crude inventories but also lower gasoline and distillate. U.S. commercial stocks are now 12.7 million barrels above last year. This is down sharply from last week due both to the stock draw this past week and the huge stock build for this same week last year. The excess continues to be largely in gasoline. While crude is down compared to last year and distillates are nearly flat and remain quite low relative to history.

Japanese Crude Imports and Stocks Rise, Demand Weakens

Crude stocks and imports jumped and gasoline demand was surprisingly soft. Kerosene stocks returned to building mode as demand eased back. Refinery margins remain abysmal with gasoline cracks being the biggest drag, though fuel oil cracks are also very weak.

Low Propane Stocks in the U.S. and High Levels of Feedstock Usage

High levels of propane exports and on-going feedstock usage will keep propane stocks relatively low going into the winter. Growing LPG imports into Europe as well as the winding down of North Sea maintenance are pressuring prices. Steam cracker operators should be maximizing propane use in both Europe and Asia.

Ethanol Values Plummet

U.S. ethanol values plunged for the week ending September 13 as the 2013/2014 corn harvest has begun and corn prices have fallen, lowering the cost to manufacture the fuel. The supply/demand balance also shifted from tightness to a surplus position.

Ethanol Output Lower

U.S. ethanol production fell to 838 MB/D for the week ending September 13, erasing some of the gains made in the previous week. Output is expected to increase soon as the corn harvest begins in the Midwest and several plants restart.

The information above is part of PIRA Energy Group's weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Click here for additional information on PIRA’s global energy commodity market research services.

NYC-based PIRA Energy Group believes that burgeoning momentum to own oil seems poised to push oil prices higher for now. On the week, U.S commercial stocks built led by crude, while Japanese crude stocks drew strongly. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Bullish Oil Prices

It is hard not to be bullish oil prices with the global economy gradually improving, tight physical oil markets and MENA turmoil, which is already substantially reducing global oil supplies and has the potential to reduce supplies further. Current positioning and likely September deflationary type headlines, due in part to a challenging calendar, but also the startup of Iranian nuclear negotiations, pose downside risks to oil prices. Yet, the burgeoning momentum to own oil seems poised to push oil prices higher for now with SPR chatter somewhat limiting the upside.

U.S. Commercial Stocks Build Led by Crude

Overall U.S. commercial oil inventories increased for the week ending August 23 according to the latest weekly DOE data with the entire build occurring in crude, while product inventories declined. Overall U.S. oil inventories are in the upper end of their historic range, in part because of high "other" products. Crude and the four major products stocks (gasoline, distillate, jet and resid) are at the average of their historic range, although crude stocks are indeed relatively high. The stock increase for the same week last year was higher, thereby narrowing the year-on-year stock excess. Nearly the entire excess is in gasoline.  

Strong Crude Stock Draw in Japan, Refinery Margins Very Weak

Crude runs were little changed, but a very low crude import figure drew stocks strongly. Gasoline demand remained strong and gasoil demand rebounded from abnormally low levels. The kerosene stock build rate moderated. Refinery margins collapsed to very weak levels as all cracks gave ground. While cracking margins are weak, topping margins are even worse. 

Withdrawal of Half of Libya’s Oil From the Market

Crude oil trade flows have been significantly altered in 3Q13 by the withdrawal of nearly half of Libya’s 1.4 MMB/D of oil from the market and the subsequent increase in production from Saudi Arabia to record levels to compensate for these losses and to accommodate growing global demand over the second half of the year. Tanker markets are adjusting with more West African crude staying in the Atlantic Basin, which is shifting tonnage demand to smaller vessels. More sour crude production has also benefited ship operators by lowering bunker prices, which have risen less than crude. 

LPG Market Appears Tight

The slow pace of propane stock building has pushed prices higher and will keep prices supported as crop drying and winter heating demand are approaching.  Gasoline blending season is starting, increasing the pull on butanes. Prompt European LPG markets are relatively tight given low arrivals in August and North Sea maintenance. More imports will be attracted from the USGC and West Africa.

Ethanol Output Drops to 21-Week Low

Ethanol output fell to a 21-week low of 820 MB/D the week ending August 30 from 844 MB/D in the preceding week, while imports dropped to 4 MB/D from 19 MB/D over the same period.  Inventories decreased by 232 thousand barrels to 16.3 million barrels as PADD II stocks fell below 5.0 million barrels for the first time since the DOE began reporting weekly ethanol data in June 2010. 

The information above is part of PIRA Energy Group's weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

NYC-based PIRA Energy Group believes that the China GDP slowdown is underway. On the week, U.S. commercial stocks drew. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

 Difficult Transitions Underway

The China GDP slowdown is underway. It is still unclear whether the long-predicted transition to slower, domestic led growth will be successful and smooth. While this may represent a vulnerability to demand growth (for all fuels), the increasingly volatile political transition in MENA could prove to represent a far more important vulnerability to oil and gas supply growth. The shale revolution continues to spread from the natural gas supply to the demand side of the balance as new markets emerge to take advantage of the growth of low cost North American production. 

U.S. Stocks Drew Last Week

Total commercial stocks decreased for the week ending August 9, largely offsetting the modest builds seen in the prior two weeks. Products increased despite lower refinery runs and lower product imports due to weaker reported demand. Crude stocks drew, with Cushing crude stock draws accounting for half of the total draw. Cushing crude stocks are now down from the all-time high this year and at the lowest level since 1Q12. Despite this week’s decline, the stock excess to last year widened as there was a draw in this week last year. 

U.S. Sees Low Propane Stock Build

A surprisingly low stock build was indicated for the latest reporting week. The U.S. is experiencing a widening deficit to last year. The storage deficit relative to last season is expected to widen as the pace of exports picks up and with a likely favorable crop drying season ahead. 

EPA Finalizes 2013 Biofuel Standards and Will Reduce 2014 Mandates

U.S. ethanol prices and margins fell last week because of rising production, inventories and imports. Sharply lower RIN prices also put downside pressure on prices. The EPA finalized the renewable fuel standards for 2013 and stated that it will reduce the 2014 mandates in order for them to be achievable. 

Ethanol Stocks Draw; Production Higher

Ethanol stocks were drawn by 291 thousand barrels to 16.4 million barrels for the week ending August 9, erasing the build from the previous week. U.S. ethanol production rose for the second straight week, reaching 857 MB/D from 853 MB/D the prior week as several manufacturers maximized output prior to extended turnarounds planned for later this month and during September. 

The information above is part of PIRA Energy Group's weekly Energy Market Recap, which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against McDermott International, Inc.  ("McDermott" or the "Company") (NYSE: MDR) and certain of its officers.  The class action, filed in United States District Court, Southern District of Texas, and docketed under 13-cv-2442, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of McDermott between November 6, 2012 and August 5, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

McDermott is an engineering, procurement, construction and installation ("EPCI") company focused on executing complex offshore oil and gas projects worldwide.  The Company provides integrated EPCI services for upstream field developments including, fixed and floating production facilities, pipelines and subsea systems from concepts to commissioning.  McDermott operates in approximately 20 countries across the Atlantic, Middle East and Asia Pacific area.  

The Complaint alleges that throughout the Class Period, Defendants made false and misleading statements and/or failed to disclose that: (a) the Company was experiencing weakness in its project bidding and execution; (b) the Company was engaging in poor risk evaluation; (c) the Company had been experiencing poor project management; (d) the Company was experiencing material losses in its Middle East, Asia Pacific and Atlantic segments; and (e) based upon the above, the Defendants lacked a reasonable basis for their positive statements about the Company during the Class Period.

On August 5, 2013 the Company issued a press release, reporting the Company's second quarter financial and operating results for the quarter ending June 30, 2013, stating a substantial decrease in the Company's year-over-year financial results which the Company attributed to poor performance of several significant projects in the Middle East and Asia Pacific segment along with underutilization of assets in the Company's Atlantic segment.  The Company additionally disclosed that it was taking immediate action to correct "weaknesses" in its "project bidding and execution" and that management was putting in place four initiatives in order to create a "more disciplined culture within the Company" to deliver adequate return on the Company's investors' capital.  On this news, McDermott shares declined $1.80 per share or over 19%, to close at $6.93 per share on August 6, 2013.