TransCanada Explores Pipeline Unit Sale
Pipeline operator TransCanada Corp is exploring a potential sale of its Columbia Midstream unit in a deal that could value the business at about $1 billion, three sources aware of the matter said.TransCanada, based in Calgary, British Columbia, is offloading parts of its infrastructure to help finance the $8 billion it has earmarked to spend on new projects in 2019, such as the high-profile Coastal GasLink system and the Keystone XL pipeline, which are likely to generate higher returns than these legacy assets.A sale of Columbia Midstream is not guaranteed, and TransCanada’s plans could still change, the sources cautioned, asking not to be named because the information is private. Columbia Midstream’s assets include four gathering systems and a pipeline in eastern Ohio and western Pennsylvania, according to the company’s website. The unit generates around $100 million of earnings before interest, tax, depreciation and amortization annually (EBITDA), and could be valued at a multiple of 10 times that amount, the three sources said. Private equity firms, infrastructure and pension funds have all viewed pipeline assets as attractive acquisitions because of their steady financial returns.TransCanada is working with an investment bank to assist it in the sale process. TransCanada is also selling a package of mineral rights in the same area, located in the Appalachian region of the eastern United States, which would raise further cash for the company, one of the sources said
Petrobras to Sell Pipeline Unit to Engie
Brazilian state-run oil company Petroleo Brasileiro SA has agreed to sell its TAG natural gas pipeline unit to a consortium led by France’s Engie SA for roughly $9 billion, Bloomberg News reported, citing a source.The Engie consortium, which also includes Canada’s Caisse de Dépôt e Placement du Québec, beat out two competing consortia, led by Itausa Investimentos Itau SA and EIG Global Energy Partners with Mubadala Investment Co, respectively, Bloomberg said, citing a source with knowledge of the matter.Petrobras, as the company is widely known, and Engie declined to comment.Sources told Reuters last month that Petrobras was accepting the final round of bids for its TAG gas pipeline unit on April 2, which was expected to bring in several billion dollars and will likely be the company’s largest divestiture in Petrobras’ asset sales program.The oil company had been targeting a sale of a 90 percent stake in TAG, which operates about 2,800 miles (4,500 kilometers) of gas pipelines.Brazil Mines and Energy Minister Bento Albuquerque said he is optimistic that there will be a deal by next week resolving the government’s dispute with Petroleo Brasileiro SA over the offshore oil-producing zone known as the transfer of rights area.Albuquerque said he hoped for a deal in time for the National Energy Policy Council’s (CNPE) meeting set for next week. The CNPE website does not list a date for the meeting.
US Oil Deals Plunge 93% in Q1
The value of U.S. oil and gas mergers and acquisitions fell to a 10-year low in the first quarter, according to data released, as investors pushed shale producers that have driven a recent merger boom to focus on lifting shareholder returns rather than production.The value of oil and gas deals tumbled plunged 93 percent to $1.6 billion last quarter from a year ago to the lowest in a decade, energy consultancy Drillinginfo said in its quarterly M&A review.Investors have urged independent shale producers to stop spending on acreage and on corporate deal-making and return cash to shareholders through dividends and share buybacks
Gazprom Neft Boosts Oil Output Capacity in Kurdistan
Russian oil producer Gazprom Neft has increased the production capacity of its Sarqala field in Iraqi Kurdistan by 25 percent by launching a third production well, the company said.The cumulative daily oil production at the field has reached 35,000 barrels.Gazprom Neft plans to produce 1.2 million tonnes at Sarqala in 2019, of which its share will reach more than 0.5 million tonnes.Gazprom Neft participates in two projects in Iraqi Kurdistan, at the Shakal and Garmian blocks. Garmian includes the Sarqala field
Aramco Treads Carefully on Saudi Ties
For Saudi Aramco and its advisers, a debut international debt issue that could raise well over $10 billion presents a key challenge - how to forge an identity as a state-owned major while in the same league as the likes of Exxon Mobil and Shell.At stake is the likely multi-million dollar difference in interest payments over coming years between its standing as an independent international corporate and one tied closely to the host kingdom whose oil it ships to global markets.Having said in January it was planning its first ever international debt issue, Aramco has been meeting with investors in Asia, Europe and the United States to promote the bonds. It hasn’t commented on what was said during the sessions
China Firm in Low-Sulphur Marine Fuel Deal
China Marine Bunker (PetroChina) Co Ltd, known as Chimbusco, has agreed a one-year supply deal with a COSCO Shipping Corp unit for low-sulphur marine fuel that meets new global environmental rules, according to a Chimbusco statement posted on a social media platform. A Chimbusco executive told Reuters that the marine fuel company will supply 500,000 tonnes of low-sulphur fuel oil in 2020 to COSCO Shipping Lines Co Ltd, a unit that operates container vessels for the China shipping conglomerate. The executive said the 500,000 tonnes makes up half of the annual marine fuel demand at Chinese ports by the whole fleet of COSCO Shipping Corp, adding that Chimbusco expects to source most of the supplies from imports.