According to a senior official from state-owned Kuwait Petroleum Corp, the company plans to ramp up its production by c.44% to 4bn barrels a day by 2020.
The company has also planned to tender certain new E&P projects in the Persian Gulf and ramp up local production capacities.
According to OPEC, Kuwait exported most of its oil: an average of 2m barrels per day in 2015. During April 2016, a quarter of its oil was exported to China. Further, Kuwait was keen on expanding its exports to South Korea as it sought contracts on the country’s energy projects.
U.S-based Calumet Specialty Products posted a 1Q’16 loss of $67.7m or 87 cents per share, as compared to a profit of $23.8m, or 27 cents per share, a year ago. The news comes on the company’s earlier announcement that it expected a net loss between $59 – 83m for the same period.
Revenues for the 1Q’16 period declined 29% yoy to $713m (1Q’15: $1bn).
The company, which owns 10 refineries across the U.S., attributed the dismal performance to the effect of collapsing oil prices as its fuel products business suffered due to weaker refining margins.
In light of the weak results, the company’s CEO Tim Go stated that the company would look to divest some of its assets, including the $430m refinery that opened a year ago in western North Dakota.
The refinery, with an operating capacity of 20,000 bpd, currently processed output worth 15,000 bpd. Calumet plans to operate the refinery at 75% of capacity due to the weakening commodity prices.
Pacific Exploration received a $830m bid from private equity firm EIG Global Energy Partners, which argues that its bid was superior to the one selected last month by the company’s board.
The bid comes ahead of its restructuring-related court hearing on Tuesday in Canada.
Previously, the company’s board selected a bid submitted by Catalyst Capital Group, which had support from debt holders holding more than 75% of the company’s debt.
EIG’s new bid was considered to be superior to Catalyst’s offer, according to the company’s CEO R. Blair Thomas.
Washington-based EIG argued in its letter that the total creditor recovery of $830m in its new bid was 67% higher than the Catalyst offer and the implied enterprise value of $1.53bn was 39% higher too.
The $300m in sponsor equity contributed to the company was 20% higher in the new bid than what Catalyst proposed, the letter said. The $550m in total cash contributed to the company was also 10% higher than Catalyst’s. EIG said the binding offer will expire May 31.
Source: Globe and Mail
Baker Hughes Inc. sought to reassure investors on Monday by announcing a $2.5bn plan to buy back stock and pay down debt, using the breakup fee it will receive following the collapse of its long-stalled takeover by oilfield services provider Halliburton Inc.
Baker Hughes stated that proceeds from a $3.5bn breakup fee from Halliburton would fund its $1.5bn share buyback and repayment of $1bn of debt.
Baker Hughes also stated its plans to refinance it’s $2.5bn credit facility maturing in September 2016.
Separately, the company also announced a further 2,000 job cuts as part of its attempts to cut costs by $500m this year.
Ultra Petroleum Corp., an oil and gas explorer, filed for bankruptcy with $1.3bn of assets and $3.9bn of debt on a prolonged downturn in oil prices.
The company has requested, in courts, to permit it to continue with its surety bonding programme ($12.6m outstanding), which secures its obligations on plugging of wells, environmental damage and road damage.
Previously, the company missed certain interest payments on its debt. Further, Sempra Rockies Marketing LLC, a pipeline operator sued Ultra for failure to pay it transport fees.
Oil giants Halliburton Co. and Baker Hughes Inc. terminated their $28bn merger deal amid regulatory pressures.
The companies had announced the deal in November 2014 to compete with no. 1 firm Schlumberger Ltd. The companies had set a deadline by end of April 2016, to either come up with an outcome or end the deal.
Baker Hughes would receive a termination fee of $3.5bn from Halliburton by 4 May 2016.
The U.S. Justice Department filed a lawsuit in early April to stop the merger, saying it threatened to eliminate head-to-head competition in 23 products and services used in oil exploration.
Rig supplier Transocean stated that it would delay the delivery of two ultra-deepwater drillships to 2020 in an agreement with manufacturer Jurong Shipyard.
Transoceanic stated that the proprietary Jurong Espadon 3T designed rigs would be scheduled to be delivered between the first and third quarter of 2020.
Deferrals have been on the rise for the company as it anticipated fewer drilling contracts in 2016 due to oversupply of rigs in the market and falling crude oil prices.