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Petroleum industry

Energy Giants Make Moves Amid Regulatory Scrutiny

Strategic Insights

— 2 min read

As regulatory bodies scrutinize the industry, key players are making bold moves to expand, merge, and strengthen their positions in the global energy landscape. Last week, a range of significant developments in the energy sector highlighted the ever-changing landscape of deal-making, partnerships, and technological advancements.

Key Takeaways:

  • Coastal Petroleum Co. suffered a setback in its royalty-interest claim against the state of Florida, with the Supreme Court declining to review a Florida appellate court ruling.
  • National Iranian Oil Co. is organizing a massive oil tender, with a follow-up seminar in Tehran to receive applications for foreign participation in London.
  • Amoco Corp. announced a major pipeline project with a 750-mile pipeline system to transport natural gas from Turkmenistan to Europe.
  • Amoco signed an agreement with Algerian state oil and gas firm Sonatrach to develop gas fields in southern Algeria.
  • Nova Corp. shareholders approved the company's planned C$14 billion merger with TransCanada PipeLines Ltd.
  • Giant Industries Inc. and Holly Corp. received approval from their respective shareholders to proceed with their proposed merger, which will form a $1.4 billion refining and marketing company.
  • Enova Corp. and Pacific Enterprises completed their $6.2 billion merger, creating Sempra Energy.
  • Occidental Petroleum Corp. agreed to sell its stake in Occidental Netherlands Inc. to a subsidiary of TransCanada PipeLines Ltd. for $275 million.
  • Key Energy Group Inc. made an offer to buy Dawson Production Services Inc. for $16/share.
  • Precision Drilling Corp. acquired 16 service rigs from Brockham Oilwell Servicing (1986) Ltd. and BOS Well Servicing Inc.
  • Shell Oil Co. and Petroleos Mexicanos (Pemex) announced plans to expand the Deer Park refinery in Texas.

Statistics:

  • Coastal Petroleum Co.'s royalty interests cover 2.5 million tidal acres along the Gulf Coast.
  • National Iranian Oil Co.'s oil tender is expected to attract over 450 companies.
  • Amoco's pipeline project will transport 350 Bcf of gas annually, with the potential to expand to 1.225 Tcf.
  • Nova Corp. and TransCanada PipeLines Ltd.'s merger will create a company with $21 billion in assets.
  • Giant Industries Inc. and Holly Corp.'s merger will form a $1.4 billion refining and marketing company.
  • Enova Corp. and Pacific Enterprises' merger created a new energy services holding company with over $6.2 billion in assets.
  • Occidental Petroleum Corp.'s sale of Occidental Netherlands Inc.'s stake will earn the company $275 million.
  • Key Energy Group Inc.'s offer to buy Dawson Production Services Inc. is valued at $180 million.

Sources:

  • "Coastal Petroleum Loses Florida Supreme Court Review," Oil Daily, January 1998.
  • "Iranian Oil Tender Attracts Top Companies," Oil Daily, June 1998.
  • "Amoco Signs Agreement with Sonatrach," Oil Daily, June 1998.
  • "Nova Shareholders Approve Merger," Oil Daily, June 1998.
  • "Giant, Holly Get Go-Ahead for Merger," Oil Daily, June 1998.
  • "Enova, Pacific Complete Merger," Oil Daily, June 1998.
  • "Occidental Petroleum Sells Stake in Occidental Netherlands Inc.," Oil Daily, June 1998.
  • "Key Energy Makes Offer to Buy Dawson Production Services Inc.," Oil Daily, June 1998.
  • "Shell, Pemex Announce Plans to Expand Deer Park Refinery," Oil Daily, June 1998.

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