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Weekly OFS Newsletter

News Items Ending February 12, 2018


 

Mergers and Acquisitions

  • Wolf Midstream Inc., a Calgary based energy infrastructure company acquired MEG Energy Corp.’s (TSX:MEG) 50% ownership interest in Access Pipeline and 100% ownership interest in the Stonefell Terminal. The acquisitions will cost Wolf Midstream $1.52 billion plus additional capital commitments of approximately $90 million. The transaction will be funded by Wolf Midstream through a $800 million investment by Canada Pension Plan Investment Board (CPPIB) and third-party debt financing.
  • Cenovus Energy Inc. (TSX:CVE) is seeking to divest its some light oil properties and oil sands properties in Alberta. The light oil properties up for sale include a 100% working interest in 25,728 ha at Puskwa and a 100% working interest in 4,907 ha at Simonette. The oil sand properties for sale include up to 57,536 ha of land with oil sands rights at the Panny, Godin, Peace River, Portage/Duncan and Craigend areas.
  • Suncor Energy Inc. (TSX:SU) announced the $920 million acquisition of an additional 5% interest in the Syncrude joint venture from Mocal Energy. The acquisition adds 17,5000 bbls/d of light sweet synthetic crude capacity to Suncor’s portfolio, and increases Suncor’s share in the joint venture from 53.75% to 58.74%. The acquisition is expected to close in the first quarter of 2018.

 

Other

  • Halliburton Co. (NYSE:HAL) is waging an aggressive campaign to challenge Schlumberger’s (NYSE:SLB) fracking related patents, claiming that Schlumberger’s patents “are not inventions but old ideas repackaged”. Among the patents being challenged are those covering the use of fiber optic tools to monitor interior well conditions, sensors to collect temperature readings across a broader area and ways to more precisely control where fracking fluid goes. Concurrently, Halliburton is pursuing more patents itself and was awarded 35% more patents in 2017 compared to 2016.
  • Canada’s federal Environment Minister Catherine McKenna unveiled changes to the National Energy Board (NEB) and the way energy projects will be reviewed. The government is introducing legislation to replace the NEB with the Canadian Energy Regulator (CER), which would conduct more defined reviews with shorter timelines (300 days) for projects not subject to the new Impact Assessment Act. All impact assessments for major projects will be led by a new single agency, the Impact Assessment Agency of Canada (IAAC), with legislated maximum timelines for the process of two years.
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