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COMPANY'S NEWS BRIEFS - Acquisitions, Joint Ventures, Appointments etc. | |
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Kencana Petroleum Berhad’s (Kencana) shareholders today gave their nod of approval with a 99.8% vote on the proposed merger between Kencana and SapuraCrest Petroleum Berhad (SapuraCrest), which is now on track to being listed in the first quarter of 2012 pending regulatory approvals. Given the sizeable combined assets and talent pool, Kencana is optimistic about unlocking revenue synergies upon merging with SapuraCrest in a union that will result in the country’s largest oil and gas service provider and world’s fifth largest EPCIC (engineering, procurement, construction, installation & commissioning) company by asset base. The cash and share swap deal will see special-purpose vehicle Integral Key Berhad (IKB) acquire all the assets and liabilities of Kencana and SapuraCrest for RM5.98 billion and RM5.87 billion respectively. Kencana’s shareholders will receive an aggregate offer price of RM3 per share which breaks down to RM0.49 in cash and RM2.51 in value of IKB shares for each Kencana share. They will receive in total 2.50 billion new IKB shares and RM969 million cash. SapuraCrest shareholders will receive an aggregate offer price of RM4.60 per SapuraCrest share, amounting to RM0.685 in cash and 1.957 new IKB shares for each SapuraCrest share. A total of 2.5 billion new IKB shares at an issue price of RM2 per share and RM875 million in cash will be distributed. The cash payout to shareholders of both entities amounts to RM1.84 billion. The total merger consideration is expected to be disbursed to shareholders of both Kencana and SapuraCrest by end February 2012 when the merger is expected to be completed. Kencana Group Chief Executive Officer Dato’ Mokhzani Mahathir said, “The cash payout gives us the opportunity to enhance the return on our shareholders’ investment and reward them for their loyal support over the years. We’re in this business to enhance shareholders’ value and we are excited about kicking off a new chapter of growth for two home-grown companies coming together as a one-stop service provider in the domestic and global O&G landscape. Once merged, we are looking at a compounded annual growth rate of 15 to 20%.” “Our current focus is on unlocking synergies as a merged entity to ensure we have the right capabilities to secure the larger, more complex projects out there. Our combined capabilities make us a full-fledged, integrated EPCIC player with a robust value chain and expanded asset base, with strong synergies derived from premium, end-to-end turnkey projects that effectively utilize the expertise, best practices and capabilities of both companies.” According to Dato’ Mokhzani the merged entity will have 9,000 people on its payroll worldwide with diverse talents and capabilities, across more than 20 countries ranging from Malaysia, Thailand and India to Australia, US, Brazil and beyond. “It is going to be the human aspect of both companies that will differentiate us from the rest once we merge. We are most keen to develop and retain our talent pool while exposing them to new possibilities. We believe that the strength of our combined human capital will be a major boon to the future growth of the merged entity. Our ability to provide experienced management teams as well as skilled technical teams who will be able to offer the right know-how to fulfil the requirements of projects throughout the EPCIC spectrum will make the merged entity a formidable force in the O&G industry.” The RM11.85 billion merged entity will be jointly helmed by Dato’ Mokhzani Mahathir as Executive Vice-Chairman and Dato’ Seri Shahril Shamsuddin as President and Group Chief Executive Officer. The proposed Board of Directors of the merged entity has been selected from among existing directors of both entities and will comprise Chairman Dato’ Hamzah Bakar, Yeow Kheng Chew, Chong Hin Loon, YM Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin, Shahriman Shamsuddin and Mohamed Rashdi Mohamed Ghazalli. Upon its listing on the Main Market of Bursa Malaysia, IKB will be among the top 40 listed companies in the country in terms of market capitalization of approximately RM10 billion, with a combined order book of RM12.8 billion which includes Kencana’s recent Wheatstone contract in Australia worth about RM1.07 billion. At Kencana’s Seventh Annual General Meeting today, the company announced a record 64% increase in profit after tax amounting to RM223 million for the financial year ended 31 July 2011.This was on the back of increased revenue of RM1.5 billion, a 37% growth as compared to FY2010’s RM1.1 billion. The Group also maintained a higher order book balance, valued at RM2.2 billion at the end of FY2011. Date: 23rd December 2011 < Back to News Index > 
The two global certification bodies DNV Business Assurance and Nemko announce that they will merge certification and testing operations for the medical and EX equipment industry in the joint venture DNV Nemko Presafe. The joint venture will commence operations from January 1st 2012.  << Image on the left: Haakon Knudsen is the Managing Director of DNV Nemko Presafe >>
“We are proud to offer a highly competitive and holistic service portfolio which incorporates the wide array of quality and safety management system and sustainability certification expertise of our parent companies”, says Haakon Knudsen, Managing Director of DNV Nemko Presafe. DNV Nemko Presafe will provide services related to the Medical Device Directive, the ISO13485, ATEX directive and IECEx standards. By means of merging the expertise and networks of DNV and Nemko, DNV Nemko Presafe aspires to provide manufacturers and operators across the supply chain in the medical and EX equipment industry with the most effective and attractive service offering on the market. “By joining forces within Medical and EX equipment certification and testing in DNV Nemko Presafe, we will be able to offer enhanced services to new and existing customers. Presafe offers an extended network of skilled and dedicated specialists with global knowledge, and can adapt to local needs worldwide. Customers will experience the excellent competence of the staff and even faster delivery of quality services,” says Thomas Vogth-Eriksen, CEO of DNV Business Assurance. “Nemko is excited to further expand our value proposition to the customer through the establishment of DNV Nemko Presafe. The two parties are quite complementary in their current services and together the new entity has global reach, based on the strengths of both DNV and Nemko,” says Dag Tørvold, President and CEO of Nemko. DNV Nemko Presafe will have its central technical competence center in Oslo, Norway, and build on the heritage of DNV Business Assurance and Nemko in the global market for compliance and market access services across the whole supply chain for medical and EX equipment. The joint venture will have a reach across 48 markets with a network of 2,200 professionals through the combined forces of DNV and Nemko. DNV Nemko Presafe will leverage expertise, speed and customer service on a global scale. Date: 23rd December 2011 < Back to News Index >
Survey and Design Association (CPCESDA) AVEVA, a leader in engineering design and information management solutions for the plant, power and marine industries, announces that it has signed a Strategic Memorandum of Understanding (MOU) in Beijing with the China Petroleum & Chemical Engineering Survey and Design Association (CPCESDA). AVEVA and CPCESDA have allied together to provide engineering design and information management technology and training for EPCs in the China petrochemical industry. Members of the CPCESDA include China’s petroleum giants CNPC, Sinopec and CNOOC. “We are pleased to be working with CPCESDA in this new partnership to meet the growing petrochemical industry needs for advanced engineering design and information management technologies”, said Paul Eveleigh, AVEVA Executive Vice President for Greater China. “Having been a long time player in China, AVEVA is further increasing its exposure to this fast growing market and strengthening our local team to meet the demand of our existing and potential customers in the petrochemical industry. As a result of the signing of this MOU, AVEVA will foster better engineering and enterprise solutions adoption in the China petrochemical industry, and assist the members of CPCESDA to achieve design approach innovation, and full engineering lifecycle management through advanced software and solutions.” Mr. Rong Shili, Chairman from CPCESDA said, “China is a rapidly-growing GDP country and the second largest economy in the world. The petrochemical industry plays a critical role in the infrastructure of developing China, and the growth in the petrochemical industry will maintain this rapid pace for many years to come. Promoting and ramping up 3D engineering and design as well as full lifecycle management technology will allow a promising future in the petrochemical industry. AVEVA have many successful users and customers in China, most of them members of this association. Supporting and promoting the technical development of our members is one of the missions of the association and I believe our new partnership with AVEVA will definitely bring tremendous benefits to all these members. We will quickly begin planning the activities for this strategic agreement between the two sides, by heavily promoting AVEVA’s 3D collaborative design technology and advanced applications in the petrochemical engineering and design industry”. Through bilateral effort, both parties will seek to establish and improve the standards of 3D and integrated engineering design for the Chinese petrochemical industry. AVEVA will support the association by providing best-in-class technical support and professional services to the members by holding technical seminars on engineering design and information management. Date: 23rd December 2011 < Back to News Index >
In mid-March Black & Veatch made two senior management appointments as it addresses infrastructure needs for global regions trying to balance energy demand increases and dwindling water availability. The move is part of the company’s increased focus on large-scale engineering, procurement and construction (EPC) opportunities around the world. Dr. Hoe Wai Cheong, Managing Director, Asia and Middle East, India, Europe and Africa (MEIEA), Black & Veatch’s global energy business has been appointed to Black & Veatch’s Executive Committee. The Executive Committee is the senior leadership team of Black & Veatch, responsible for the company’s strategies and global operations. In his committee role, Dr. Cheong will bring critical insights and perspectives from his day-to-day role implementing strategy, developing the business and executing energy projects for clients in regional markets. His leadership has been instrumental in the continuing success of several large EPC projects including Glow Phase 5, a combined cycle and cogeneration power plant with a capacity of 340 megawatts (MW) in Rayong, Thailand, and Tanjung Jati B Units 3 & 4, on the island of Java in Indonesia, a power plant consisting of two 660 MW pulverized coal-fired units. Black & Veatch’s global water business also has named Richard Dagwell as Managing Director for Expanded Scope projects in Asia Pacific to help meet growing water-infrastructure needs in the region. Dagwell will lead the company’s focus on targeting more EPC contracts in Asia Pacific, lending his experience from many successful large-scale water infrastructure projects in Australia, such as the award-winning Bundamba Advanced Water Treatment Plant in Queensland, delivered through a Thiess/Black & Veatch joint venture. Date: 22nd April 2011 < Back to News Index >
GE announced on March 29 that its Energy business has entered into an agreement to acquire approximately 90 percent of Converteam, a leading provider of electrification and automation equipment and systems, from a controlling shareholder group that includes management, Barclays Private Equity and LBO France, for approximately $3.2 billion. The transaction, endorsed by Converteam’s management team and employee representative groups, is expected to close during third quarter 2011, subject to customary closing conditions. Converteam’s senior management will retain approximately a 10 percent stake in the company. GE and Converteam senior management have entered into agreements pursuant to which GE would purchase the remaining shares in the company over the next two to five years. The price for the shares can vary based on the time of sale, business performance and other factors. GE expects that the price should be no greater than approximately $480 million. The multi-sector energy efficiency, electrification and automation industry, in which Converteam participates, was valued at over $30 billion in 2010 and is growing at rates above global GDP growth. Approximately 25 percent of the world’s electricity is used to power rotating machines in a wide range of industries and applications. Converteam’s high-efficiency solutions are designed to reduce the electricity consumption of rotating machines by nearly one-third, offering significant savings in terms of cost, energy intensity and greenhouse gas emissions. GE’s global reach and local expertise will improve Converteam’s ability to serve customers in high growth regions such as Brazil, Russia, China, India and the Middle East. Building on more than 100 years of expertise in power electronics and automation technologies, Converteam operates across six key vertical sectors: offshore and onshore oil and gas, power generation, wind and solar renewables, industrial, marine and services. Headquartered in Massy, France, Converteam has 5,300 employees, including more than 1,600 engineers, and operates in more than 80 countries. Converteam recently announced 2010 sales of approximately $1.5 billion and EBITDA of approximately $239 million, with approximately 36 percent growth in orders versus 2009. Date: 22nd April 2011 < Back to News Index >
As of March 21, Indonesia was only producing 917,000 barrels of oil per day (bpd), making the 2011 production target of 970,000 bpd a bit beyond reach, upstream oil and gas regulator BPMigas has revealed. BPMigas spokesperson Gde Pradnyana said there was nothing peculiar with the current production trend because, in the first semester, almost all oil firms operating in the country usually produced below the target. "In the second semester, starting in July or August, their productions will generally exceed the target," he said in a telephone interview. He blamed unplanned shutdowns, caused by poor weather and technical problems, as main contributors to the country's failure to reach the oil production target. He said that, since the beginning of the year, there had been 195 unplanned shutdown events across the country. "Those shutdowns caused the country to lose around 14,000 barrels of oil per day," said Gde, adding that the country also lost 14,000 bpd last year and 21,500 bpd in 2009 due to unplanned shutdowns. The agency's data shows that, as of March 6, Chevron was still the largest oil producer in Indonesia, producing 359,000 bpd, followed by state oil and gas firm PT Pertamina's 122,000 bpd, France-based Total's 89,000 bpd and US-based ConocoPhillips' 51,000 bpd. Gde said the agency would strengthen its supervision of production sharing contract (PSC) holders to prevent more shutdowns from happening over the course of the rest of the year. He said that BPMigas would persuade companies to improve the maintenance of their production facilities and equipment. An energy expert from the ReforMiner Institute, Pri Agung Rakhmanto, told The Jakarta Post that BPMigas could do nothing to prevent unplanned shutdowns, since almost all oil fields in the country, as well as their production equipment, were out of date. "The only way to crank up our oil production is by boosting exploration activities to find new oil fields," he said. Seeing the current sluggish trend in exploration activities, Pri believed that Indonesia's oil production would never reach the 970,000 bpd targeted by the government. He estimated that the production level would stay at between 900,000 and 950,000 bpd. "In at least the next two years, our oil production will decline or at least stay at the current level," he said. According to BPMigas, in 2010, Indonesia's oil production was only 954,000 bpd, or 4,000 bpd below the target. This year, the government announced that the oil production would reach 970,000 bpd. Pri deemed that the target set by the government was unrealistic considering that no new oil fields had been found recently. "This year, it would be a good achievement if our oil production can reach 945,000 bpd," he said. Gde acknowledged that in the past decade, no discovery of major oil fields have been made in the country. The last discovery of a major oil field was Cepu block in Central Java, that was currently operated by US-based ExxonMobil. "The block was discovered in 1998, while the development started in 2005. The block is estimated to have a maximum capacity of producing 185,000 barrels of oil per day," he said. Date: 22nd April 2011 < Back to News Index >
In April it was announced that the PetroVietnam Group will spend $2.35b developing 25 petroleum projects in countries of the former Soviet Union, as well as Venezuela and elsewhere in Latin America. Oil and gas exploitation overseas would eventually reach 2-3 million tonnes per year, with reserves as high as 15 million tonnes. The group made the announcement at a conference in Ha Noi held by the ministry of industry and trade to discuss opportunities for the development of Viet Nam's oil and gas industry with Dutch companies. PetroVietnam was also intending to invest a total of $84 billion between now and 2015 in strengthening oil and gas exploitation, petrochemicals production and other related lines of business, the group said. Nguyen Thanh Tung, an official from the ministry of industry and trade, told the conference that the potential for the oil and gas industry and the energy sector overall in Vietnam remained great. However, he said, foreign investment and technology was needed to develop a domestic gas processing industry. Tung said that, to attract investment in the petroleum sector, the Vietnamese government had offered incentives and created opportunities for foreign investors and joint ventures to develop various projects in the nation's oil industry. Gas exploration and exploitation, particularly in the southern part of the continental shelf, remained in the beginning stages, he said. The nation's untapped gas reserves have been estimated at 682 billion cubic meters, offering a greater potential for exploitation than oil. According to PetroVietnam, Vietnam's crude oil reserves stood at 4.4 billion barrels at the end of 2010, while crude oil productivity last year reached 15.1 million tonnes. Gas production reached 9.4 billion cubic meters. The Dung Quat oil refinery has been in operation for two years with a capacity of 6.5 million tonnes per year, corresponding to approximately 148,000 barrels a day and meeting 30 percent of domestic demand for refined petroleum products. PetroVietnam has plans to build additional refineries in the provinces of Thanh Hoa and Ba Ria-Vung Tau. Date: 22nd April 2011 < Back to News Index >
It was announced in mid-April that the Malaysian Petroleum Resource Corporation (MPRC) is being set up to aid the development of Malaysia’s oil and gas industry. The new organisation will be under the aegis of the Malaysian Industrial Development Authority. "We are looking at human capital requirements, marketing and how we can promote the industry further," interim MPRC chief executive Shahreen Madros was quoted as saying, adding that Prime Minister Najib Razak would make an announcement "soon" on details of the MPRC. A net oil exporter with flagging output, Malaysia produced 1.61 million barrels of oil equivalent per day in the three months to 31 March, down from 1.64 million boepd for the same period last year, according to national oil company Petronas. Malaysia has been trying to lure new energy investments. In January, the government said oil giants ExxonMobil and Shell would invest 15 billion ringgit ($4.9 billion) in new oil, gas and energy assets in the country, Reuters reported. Malaysia has 106 marginal oil fields, with 580 million barrels of oil and the government recently announced plans to tap into the wells. Date: 22nd April 2011 < Back to News Index >
Bureau Veritas is pleased to announce the acquisition of Atomic Technologies Pte Ltd, a leading Non Destructive Testing (NDT) company based in Singapore. Founded in 1993, Atomic Technologies offers a full range of standard and advanced NDT services to the oil and gas and process industries, provided by a team of highly qualified inspectors. The company is particularly active on Jurong Island, in the southwest of Singapore, the home of leading petroleum, petrochemicals, specialty chemicals and manufacturing companies. With this acquisition, Bureau Veritas reinforces its asset integrity management offering and will serve a much broader client base in the fast growing South East Asia region. Date: 13th April 2011 < Back to News Index >
Scottish Enterprise’s Energy and Low Carbon Technologies team has announced an agreement with Glasgow based TUV NEL, an international technology services organisation, to drive forward the development of carbon capture and storage (CCS) opportunities in Scotland. As initial step in this contract, TUV NEL Senior Consultant, John Morgan, will be seconded to work alongside Scottish Enterprise’s energy team and act as CCS Champion in Scotland. Acting as a focal point for Scottish Enterprise activities in the area of CCS, John’s main duties will include assisting Scottish Enterprise and other public sector agencies to develop a coherent strategy for the development of CCS. Speaking of his new role, John said, “I look forward to working as an integral member of the Scottish Enterprise energy team, building on the existing CCS roadmap to make a significant contribution to the economic development of CCS in Scotland. “According to the CCS roadmap, jointly published by the Scottish Government and Scottish Enterprise in March 2010, there is the potential for a whole new industry to emerge in Scotland, which could support up to an estimated 10,000 new jobs in the next 15 to 20 years. In view of this, my role will specially focus on establishing close links with major industry and academic partners, as well as the broader stakeholder community, with current involvement or potential interest in development of CCS and advise them of future opportunities. “I will work towards building strong working relationships with potential funding partners to ensure that maximum available funding in support of CCS is attracted to Scotland”, said John. David Rennie of Scottish Enterprise Energy Team said, “We are delighted with this new agreement as TUV NEL supports our work in developing CCS opportunities for Scottish businesses. Recently, Scottish Enterprise Energy Team conducted a foresighting exercise which highlighted the major opportunities for Scottish companies. We recognise the need to develop a sustainable and profitable CCS industry, for which there will be a requirement to ensure that supply chain, infrastructure and skills set are fit for purpose. “There is a large storage capacity in depleted oil and gas fields and saline aquifers in the North Sea, and much of this is well understood having been mapped during oil and gas exploration activities; so there is much to play for. It is estimated that the potential global market opportunity could be worth around £5000 billion, and the Scottish Enterprise and Scottish Government CCS Industry Advisory Group believes that a significant part of this opportunity can be realised in Scotland. “With John’s extensive experience in consulting, programme and project management across numerous industrial sectors and public sector organisations, we believe he will bring a real focus to our work within this sector, helping to ensure that Scotland stays at the forefront of new opportunities. John brings a level of knowledge and experience that will be important to us if we are to fully capitalise on Scotland’s potential for CCS”, concluded David. John has previously played key consultancy roles in innovation programmes including technical and financial due diligence, technology transfer, business analysis, re-engineering, supply chain integration and techno-economic analysis. As part of his current activities, he undertakes key responsibilities within TUV NEL for the delivery of major UK and European collaborative R&D programmes. Date: 25th October 2011 < Back to News Index > |
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