Week in review
Multinational 
ISTANBUL, March 10, 2017 – The past week was one of farm-ins and acquisitions, with several majors splurging on gas-rich acreage in particular.
OMV set the buying in motion on Monday when it announced it had reached an agreement with German energy company Uniper on the acquisition of a stake in the Yuzhno Russkoye field.
One of Russia’s largest gasfields, the deal is expected to add 100,000 boepd to the Austrian major’s production capacity. OMV will pay USD 1.85 billion for a 24.99% interest in Yuzhno Russkoye, equivalent to 580 million boe of the remaining recoverable reserves.
The Siberian field is operated by Gazprom on a 40% stake, with Wintershall holding 35%.
Eni from the block
Eni on Tuesday concluded a farm-in deal with Total for a 50% participating interest in Cyprus’ Block 11.
The French major will continue in its role as operator of the offshore asset, which is located in proximity to the super-giant Zohr discovery in Egyptian waters.
The farm-in agreement, green-lit by the Council of Ministers of the Republic of Cyprus, further expands Eni’s footprint in the Eastern Mediterranean.
The Italian giant returned to the headlines on Thursday, closing a deal with ExxonMobil for the sale of a 25% stake in the Area 4 block off Mozambique.
The transaction will see ExxonMobil make a cash payment of USD 2.8 billion for an indirect interest in the gas-rich asset, which is 50% owned by Eni. It operates Area 4 through a 71.4% ownership stake in Eni East Africa. The remainder is held by China National Petroleum Corporation (CNPC).
Eni and ExxonMobil will split the Eni East Africa stake, taking 35.7% each. CNPC has 28.6% while Mozambique’s ENH, Korea Gas Corporation and Galp Energia of Portugal hold 10% stakes each.
Job generator
Earlier in the week, ExxonMobil said it would spend USD 20 billion over the next 10 years expanding its refining and petrochemicals manufacturing capacities in the US Gulf Coast Region.
Company CEO Darren Woods made the announcement to visitors at the CERAWeek conference in Houston on Monday.
According to Woods and an accompanying press release on the company’s website, ExxonMobil will upgrade or build new facilities at 11 sites in Texas and Louisiana.
These chemical, refining, lubricant and LNG projects are a part of the company’s “Growing the Gulf” expansion programme. Woods noted the projects have the potential to add more than 45,000 direct jobs in the region.
Permian push
Another notable deal was the Marathon Oil purchase of about 283 net square kilometres in the popular Permian Basin. According to a company announcement on Thursday, the US independent will acquire the property for USD 1.1 billion in cash from BC Operating and other entities. The sale includes 51,500 net acres in the Northern Delaware Basin of New Mexico, a sub-basin of the prolific Permian Basin, which also stretches into west Texas.
Finally, Shell on Thursday reached agreements with Canadian Natural Resources on the sale of its in-situ oil sands assets, along with undeveloped leases.
Valued at USD 7.25 billion, the deals will see Shell sell its 100% ownership stake in the Peace River Complex in-situ assets. Additionally, the company will reduce its shareholding in the Athabasca Oil Sands Project from 60% to 10%.
The 10% stake will be held through a shareholding in Marathon Oil Canada Corporation, which Shell jointly acquired with Canadian Natural in a second, separate transaction.
Shell will maintain its operatorship of the Scotford upgrader and Quest Carbon Capture and Storage project, as well as the nearby refinery and petrochemicals facilities.
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