Karoon secures $275m loan facility to complete acquisition of Baúna oil field

first_imgThe syndicated facility agreement is expected to offer an option to provide additional funding for the tie-in development of the Patola oil discovery Image: The Baúna field contains two producing oil reservoirs, Baúna and Piracaba. Photo: Courtesy of David Mark from Pixabay. Australian independent oil and gas firm Karoon Energy, through its wholly-owned subsidiary Karoon Petróleo e Gás Ltda (KPG), has signed a senior secured term loan facility of up to $275m, fully underwritten by ING Bank, Singapore Branch.Karoon said that it intends to use the facility as part of the funding package for the acquisition of a 100% operating interest in the Baúna oil field in the Santos Basin, offshore Brazil.The syndicated facility agreement is expected to offer an option to provide additional funding for the tie-in development of the Patola oil discovery, and the option is subject to final lender approval following Patola reserve certification, an approved updated bank model and project sanction.In addition, the company intends to complete the documentation and regulatory approvals prior to the completion of the Baúna acquisition, which is expected to be completed during the first quarter of the calendar year 2020.Baúna field acquisitionIn June 2019, Karoon executed a binding sale and purchase agreement to acquire a 100% operating interest in the Baúna field for a consideration of $665m.The Baúnafield contains two producing oil reservoirs, Baúna and Piracaba, where both tied back to the leased floating production,  storage and off-loading facility (FPSO) Cidade  de  Itajai, and the existing undeveloped Patola discovery.The field is currently producing light sweet crude at a rate of approximately 20Mbopd, and the acquisition would provide material operational and logistical synergies for the potential development of Karoon’s existing southern Santos Basin assets, Neon and Goiá.Karoon is an international oil and gas exploration company with projects in Australia, Brazil and Peru, and has a core exploration growth strategy, focused on large targets in proven Petroleum Systems.Karoon managing director Robert Hosking said: “The company has been working very hard over the past three years to acquire a high quality production asset with robust economic returns. Through the acquisition of the Baúna asset Karoon has delivered on its highest strategic priority.“Baúna will provide Karoon shareholders with  material oil production  (currently approximately 20Mbopd before development workovers) and  a platform for future growth. The  transaction  will  be transformational for Karoon shareholders, providing significant exposure to reserves, resources and high margin oil production”last_img read more

Ironwood II secures $400m investment from EnCap Flatrock Midstream

first_imgIronwood II has also signed an agreement to acquire midstream assets in South Texas currently owned by Twin Eagle Gardendale Pipeline Image: Ironwood Midstream Energy announces the formation of Ironwood II. Photo: courtesy of PublicDomainPictures from Pixabay. Midstream services company Ironwood Midstream Energy Partners II (Ironwood II) has secured $400m investment from EnCap Flatrock Midstream.Ironwood Midstream Energy Partners has formed Ironwood II that will focus on the development of midstream infrastructure for oil and gas producers working in shale plays across North America.Ironwood II chairman, president, and CEO Mike Williams said: “The mutual trust and respect we share is an important foundation for a business partnership.“Our values are aligned and so is our approach to creating value in the midstream sector. Ironwood II couldn’t ask for a better sponsor.”Ironwood II to acquire South Texas midstream assets from Twin Eagle subsidiaryBesides, the San Antonio-headquartered Ironwood II has signed a binding agreement to acquire midstream assets in South Texas which are currently owned and operated by Twin Eagle Gardendale Pipeline, a subsidiary of Twin Eagle.The acquisition is anticipated to close in December this year.The new affiliate will acquire Twin Eagle’s Gardendale and Asherton gathering systems, which together comprise 220.48km of crude oil collecting pipeline.The pipeline connects to multiple long-haul pipelines and allows access to the US Gulf Coast, Three Rivers and Houston markets.The Gardendale and Asherton systems, which are supported by long-term dedications totaling more than 124,000 acres, span Dimmit and La Salle counties.For the transaction with EnCap Flatrock Midstream Gibson, Dunn & Crutcher served as legal adviser to Ironwood II with partner Beau Stark in the lead role from the firm’s Denver office.EnCap Flatrock managing partner and founder Bill Waldrip said: “Mike Williams, Justin Johnson, Josh Doramus and Danny Rea have outstanding reputations and track records. We look forward to bringing more than capital by bringing our expertise and contacts to the table.”In January this year, Clear Creek Midstream, an independent energy company, had secured an initial venture capital commitment of $300m from EnCap Flatrock Midstream.last_img read more

Oil and gas industry faces a defining decade for its future, says Environmental Defense Fund director

first_imgWhen new BP boss Bernard Looney announced last month he would oversee the oil major’s transition to net zero by 2050, he credited consultation with the Environmental Defense Fund (EDF) as a key influence in shaping his decision.The US-based advocacy group has established itself as a prominent voice in the ear of major companies around the world — advising on a range of sustainability issues, as well as how to maximise opportunities presented by the response to climate change.For the oil and gas industry, in particular, it says the next 10 years will be critical for executives, who will need to make tough decisions that will come to define the long-term success or failure of their organisations.“Business-as-usual for the oil and gas industry is over,” EDF senior director Ben Ratner announces to a room packed with industry delegates at London’s IP Week.“The defining decade has arrived. This is the decade in which the decisions energy executives make will define their companies’ future viability, and shape the standing of the entire industry on which every company in the value chain depends.” Environmental Defense Fund director Ben Ratner addressed oil and gas delegates at London IP Week on why the industry needs to embrace a low-carbon future Environmental Defense Fund’s Ben Ratner spoke at IP Week 2020 (Credit: Twitter/Energy Institute) At London’s IP Week, senior director for the Environmental Defense Fund’s business energy transition team, Ben Ratner, took to the stage to address oil and gas delegates on what he sees as a “defining decade” for the future of the industry. Andrew Fawthrop was in the audience for NS Energy to hear what he had to say. Investor decisions are changing the future outlook of the oil and gasThe subject of climate change is, without doubt, working its way up corporate agendas with greater urgency than ever before. Several significant developments, even since the turn of the year, emphasising the fact that the oil and gas industry must sit up and take notice, or risk both financial and reputational damage.Ratner tells his audience: “The CEO of BlackRock says climate change has become a defining factor in companies’ long-term prospects. Jeff Bezos donates $10bn to climate change solutions. BP’s CEO announces a set of new ambitions to net zero by 2050 or sooner.“Financial analyst Jim Cramer goes on live TV and goes so far as to declare fossil fuel stocks dead. Not because they are not paying dividends, but because an increasing group of investors are unwilling to tolerate the environmental and social costs that come with those dividends.“Already investors are making decisions, like whether to maintain exposure to oil and gas for a set of reasons — and, if so, which companies deserve their capital and their trust. The talent are making their decisions about what kind of industry they want to work in and what kind of company they want to work for.”center_img Ratner tells industry to think of renewables as ‘core growth’While some sections of the environmental movement call for an immediate end to all fossil fuel activity and the companies associated with it, Ratner says his goal, and the goal of his organisation, is to work alongside industry and policymakers as a partner to support them transition to a low-carbon economy.Citing International Energy Agency data showing oil and gas firms currently only direct about 1% of their capital expenditure into “non-core” areas — effectively meaning renewables and clean technology — he tells the delegates to instead think of these business segments as “core growth”.He adds: “Whatever we disagree on, I think there’s common ground that oil and gas is not going to have a massive growth trajectory.“We can discuss and debate when peak oil is going to be, but massive growth is not on the horizon. However, we have already seen a massive hockey-stick adoption in electrification and renewables.” Measurable goals and advocacy for climate policy are key to progressFour pillars make up this strategy for transforming the face of the oil and gas industry: commitment to ambitious goals, support for science-based climate policy, collaboration to achieve results at scale, and innovation.Ratner says the first step for any company is to set measurable and ambitious targets in line with the Paris Agreement, while putting pressure on governments and regulators for policies that reward environmental performance.“Conventional wisdom has taught us that what gets measured gets managed,” he says.“We face a systems problem that requires a systems approach to deliver a systems solution. Any serious set of climate goals must include Scope 3 emissions — they should be at priority level one.“Net zero by 2050 is an ambition, but it’s a distant point on the horizon to steer the ship towards.“The medium tenure for an oil and gas CEO is about four and a half years, so long-term ambitions must be backed by interim targets that help drive actual plans, and I would encourage you to include measurable goals for 2025 and 2030.“Change this big requires government and business to work together. I know that stricter environmental regulation doesn’t come easily for many people in the industry, but times are changing, and there are good business reasons to make seeking strong climate policies a part of your business as usual.“Well-designed policies send signals for innovation — they reward environmental performance and make it easier for companies to turn that big ship and achieve their goals cost-effectively with the support of government and other stakeholders.“When I talk to investors I hear their growing appreciation not just of the essential role of ambitious government action but of the influential and important duty of companies to engage and support governments in stepping up.“If industry can unlock the same innovation above ground as it has below ground in the last century, this defining decade could well be yours.“In an era that’s fluid and competitive, all companies must put their innovation agenda front and centre because the opportunity is that great and it’s what customers, investors, employees and civil society demand.”last_img read more

GEV signs joint development agreement for CNG power project in Brazil

first_imgThe partners will use their respective expertise to jointly evaluate and promote the development of a CNG to Power project Pre-Salt regional overview and proximity to Porto Norte Fluminense. (Credit:GEV/EPE) Australian compressed natural gas (CNG) developer Global Energy Ventures (GEV) has signed a joint development agreement (JDA) with Porto Norte Fluminense (PNF), and GEV’s Brazil country associate, GAIA, to assess the development of a CNG to Power project in Brazil.As per the JDA, the partners will leverage their respective expertise to jointly evaluate and promote the development of a CNG to Power project, including CNG import facilities at the Port.Offshore port and gas hub planned in municipality of São Francisco de ItabapoanaPNF is developing an offshore port and gas hub in the municipality of São Francisco de Itabapoana, State of Rio de Janeiro.GEV said that the Port’s proposed offshore terminal would be ideal for CNG import and unloading, due to its fit for purpose design, offshore accessibility and dedicated facilities.If feasible, the partners would progress to definitive and binding agreements with operations planned to commence in 2025.GEV Brazil project manager Luke Velterop said: “While gas reinjection can be required for reservoir management, operators are having to consider reinjection of the entire gas stream, due to the lack of midstream infrastructure and gas market challenges.“An integrated CNG to Power project would solve both of these issues. CNG Optimum and PNF can unlock value in Pre-Salt natural gas reserves by offering operators a fit for purpose solution with the CNG shipping fleet, port terminal and plant facilities specifically sized to the gas production and market demand.”“The JDA partners envision a CNG to Power project with a long-term Pre-Salt gas price would be competitive to power plants using imported LNG as fuel.”In advance of Brazilian power auctions scheduled in 2021, the JDA partners plan to assess the cost competitiveness of specific gas fields for a CNG to Power project.last_img read more

Kuwait Clean Fuels Project commissions key Hydrocracker Unit

first_img Kuwait Clean Fuels Project commissions key Hydrocracker Unit (Credit: Petrofac Limited) Our Clean Fuels Project for Kuwait National Petroleum Company (KNPC) has achieved a further significant milestone, with the safe and successful commissioning of Hydrocracker Unit 214 at Mina Abdullah Refinery.This is the second largest hydrocracker unit in Kuwait. It is licensed with a feed processing capacity of 50,000 barrels per stream day (BPSD) and will upgrade heavy gas oil fractions into lighter products through a hydro-cracking process using catalyst and hydrogen. This will enable the production of Kuwait’s new generation of ultra-low Sulphur fuel products, including Euro 5 Diesel, Kerosene and Jet Fuel, Naphtha and LPG.Petrofac is leading a joint venture partnership with Samsung Engineering Co Ltd and CB&I Nederland BV (now McDermott International). As well enabling the production of these new, cleaner fuel products, the project will also increase processing capacity at this key project for Kuwait’s refining industry.Prashant Bokil, JV Project Director, said: “We have progressively continued the commissioning and handover of each unit and the Hydrocracker is another important milestone for this mega project. Thank you to everyone involved, we are focused on safely delivering the remaining work ahead and completing the project to the full satisfaction of our client KNPC.”The Clean Fuels Project, Mina Abdullah Refinery has a total of 12 new process units from five licensors, inter-refinery transfer lines and interconnecting pipe rack. Seven of the units, along with associated flares, have now been commissioned, with the Vacuum Rerun (VRU) Unit 213 currently under commissioning and the remaining four units (HCR-114, ARDS-212 and 112 and CCR-127) in advanced stages of pre-commissioning.This is an Engineering, Procurement and Construction (EPC) project on a massive scale. At the peak of activity, more than 15,000 people were working on the Kuwait site. An exemplary safety record has been maintained, with more than 67.2 million work hours without lost-time incident since May 2018. Source: Company Press Release This is the second largest hydrocracker unit in Kuwaitlast_img read more

First-time buyers make up nearly half of all mortgages

first_imgFirst-time buyers in this country now account for almost half of all homes purchased with a mortgage, a rise of 38 per cent since 2011, owed in part to a surge in first-time buyer mortgage deals, new research shows.The study from the Halifax revealed that first-time buyers make up 47 per cent of all mortgage-aided acquisitions, while the deposit that they have to pay has increased by 6 per cent over the past 12 months to an average of £29,894, reflecting a general rise in property prices over the past year. The average first-time deposit is now 82 per cent or £13,494 higher than in 2007.Overall there were an estimated 139,500 first-time buyers in the first six months of this year, down 7 per cent year-on-year, but while this is the first annual decrease on this basis since the first half of 2011, it is still the highest total for the first six months of the year since 2007.Craig McKinlay (left), Halifax Mortgages Director, said, “There was a modest decline in the number of first time buyers in the first half of the year following the substantial increases recorded in 2013 and 2014. This fall has been in line with the general softening in market activity.“However, there are now signs of a pick-up in mortgage activity as the economy continues to recover and mortgage interest rates remain at very low levels. These factors could boost the number of first-time buyers during the second half of the year.”The number of first-time buyer mortgage products now available has soared to its highest level since 2007, with the number of 90 per cent and 95 per cent loan-to-value (LTV) mortgages now totalling 723 products.“This marks a 73 per cent increase on five years ago, when buyers with small deposits only had the choice of 194 products,” said Charlotte Nelson (right), Finance Expert at Moneyfacts.co.uk.She added, “Surprisingly, Help-to-Buy doesn’t account for all of these new products, but with the number of deals totalling 437 before the scheme was launched, it is clear that H2B acted as a catalyst for banks and building societies to get in on the act.”With mortgage competition fierce, the average rates for 95 per cent LTV deals have dropped to the lowest on record, with the average two-year fixed rate now standing at 4.47 per cent.“The boost in numbers and the lower rates suggest that lenders are finally recognising the importance of first-time buyers, who have often been considered the life-blood of the housing market,” Nelson added.Halifax mortgages Moneyfacts.co.uk Charlotte Nelson Craig McKinlay first-time buyers July 8, 2015The NegotiatorWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles 40% of tenants planning a move now that Covid has eased says Nationwide3rd May 2021 Letting agent fined £11,500 over unlicensed rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 Home » News » Housing Market » First-time buyers make up nearly half of all mortgages previous nextHousing MarketFirst-time buyers make up nearly half of all mortgagesThe average first-time deposit is now 82 per cent or £13,494 higher than in 2007.The Negotiator8th July 20150694 Viewslast_img read more

Variety the key as Emson grows

first_imgClive Emson Auctioneers is cataloguing 150 lots for its Spring sale. This follows a successful landmark 200th auction in March at which the firm sold land and property worth £22 million, achieving a 75 per cent sale rate after cataloguing 150 lots.Managing Director James Emson said, “We continue to grow as we progress through 2018 with many additional people turning to property and land auctions.“Our packed salerooms and the strong results we achieve for clients are testament to the excellent value found at our sales for both vendors and purchasers.“Among our 150 lots are a hotel with panoramic sea views, a former Ministry of Defence munitions store, a metal water tower, a toll house dating from 1758, an old Baptist chapel, an historic former mint house, cottages with river fishing rights, former pubs, woodland, development sites with planning permission and a host of lock-up garages.”Some of the spring auction highlights include: Three cottages (pictured) in a very pretty setting on the River Exe at Bickleigh, Devon with 110m of river frontage and fishing rights are freehold, guide priced £300,000 to £400,000.auction auction lot Clive Emson Auctioneers Emson May 14, 2018The NegotiatorWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Agencies & People » Variety the key as Emson grows previous nextAgencies & PeopleVariety the key as Emson growsThe Negotiator14th May 20180357 Viewslast_img read more

71% of estate agents have no idea what will happen to their EU employees after Brexit

first_imgMany estate agents have no idea what’s going to hit their businesses when the UK leaves the EU on March 29th next year.That’s the conclusion of a study of the property industry by a leading legal firm which found that 71% of business leaders in the sector felt unprepared for Brexit, 57% were worried about leaving the EU and 43% said they would be concerned about employing someone from an EU state after Brexit.Leeds-based Black Solicitors also found that three quarters of property business leaders have a limited understanding of how the Brexit process will affect their business or the what it may mean for their non-UK employees under proposed immigration laws, despite 67% of agents employing staff from the EU.Under current proposals after the UK leaves the EU and also following a transition period, all but the most highly skilled workers will be treated as temporary workers with restricted access to benefits and services, and with no long-term right to settle in the UK.EU workers will have to register in order to continue working and living hereOther likely outcomes of Brexit agents will include a lengthier recruitment process, it is claimed, and higher recruitment costs.And over a third of all businesses quizzed said they were not sure if they could replace departed EU colleagues with British alternatives.“With less than seven months to go until Britain leaves the EU, it is worrying that such large numbers of employers still feel in the dark about their ability to retain and recruit EU nationals,” says Louis MacWilliam (left), an immigration expert at Blacks Solicitors.“This is in spite of the Home Office publishing concrete details about the new mandatory registration scheme for EU nationals, due to open later this year.“Businesses in [the property] industry rely heavily on EU labour and employers can play an important role in securing the rights of their EU employees.“This includes ensuring employees are aware of any eligibility to apply for British citizenship or EU documentation before we leave the EU, as well as the new mandatory system of registration for EU nationals.”leaving the eu Louis MacWilliam Blacks Solicitors LLP Brexit August 10, 2018Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021 Home » News » 71% of estate agents have no idea what will happen to their EU employees after Brexit previous nextRegulation & Law71% of estate agents have no idea what will happen to their EU employees after BrexitMajority of industry leaders say their agencies are unprepared for Brexit even though three quarters of them employ EU nationals.Nigel Lewis10th August 201802,143 Viewslast_img read more

Leading developers sign leasehold reform pledge, but critics claim it’s ‘cobbled together’

first_imgHome » News » Leading developers sign leasehold reform pledge, but critics claim it’s ‘cobbled together’ previous nextRegulation & LawLeading developers sign leasehold reform pledge, but critics claim it’s ‘cobbled together’Housing minister James Brokenshire claims the initiative will further support existing and future leaseholders by protecting them from onerous fees.Nigel Lewis29th March 201901,088 Views Housing minister James Brokenshire has revealed that 40 leading new homes builders and industry organisations including the Home Builders Federation have signed a 14-point ‘pledge’ to end the practice of unfair and onerous leaseholds.Big names in the industry to have signed up to the document include Bellway, Bovis, Barratt, Countryside, Fairview, Galliford Try, Miller, Octagon, Persimmon, Redrow, Taylor Wimpey and Telford Homes.The pledge includes a promise to free the 12,000 existing leaseholds trapped in bad ‘doubling clause’ deals and ending the practice of unjustified legal fees when leaseholders take freeholders to court over dubious leasehold clauses.Leasehold reformFor existing leaseholds, developers have promised to help them move to RPI-indexed rises in ground rent regardless of whether they have previously asked to amend their leaseholds or not.The pledge also requires developers not to insert onerous clauses in future agreements, and ensure details of each leasehold are represented in a ‘fair and transparent way’.Developers have also agreed to put in place both appropriate complaints and redress schemes to reassure leaseholders that any future problems are dealt with appropriately.“Today’s news is a victory for those stuck in leases with onerous ground rent payments, charged for making alterations to their properties, and [who are] ultimately unable to sell their homes,” says Mark Hayward (left), Chief Executive of NAEA, which has been campaigning on the issues.“These measures are a huge step in the right direction towards fixing Britain’s broken housing market.”Cobbled togetherBut the initiative is not without its critics. Campaigning organisation the Leasehold Knowledge Partnership, headed up by former Mail on Sunday property editor Sebastian O’Kelly (right), says: “Developers and freeholders have pledged to act fairly, having previously told the Communities Select Committee that everything in leasehold smelled of roses and leaseholders were exaggerating the problems.“The government and panicky leasehold monetisers have cobbled together a sort of good behaviour pledge mainly in response to the Communities Select Committee’s thoroughly researched assault on leasehold practices published earlier this month.” Leasehold knowledge partnership Mark Hayward James Brokenshire NAEA sebastian o’kelly March 29, 2019Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more

Revealed: how much newbuild industry is dependent on Help to Buy

first_imgThe extent to which the new-build homes market has become increasingly dependent on the government’s  to Buy Equity scheme have been revealed by the Ministry of Housing, Communities and Local Government (MHCLG).Last year 42,748 first time buyers bought a new-build property via the scheme, an increase of 14% on 2017 and an 85% increase on 2014, the first full year of its operation.The scheme now represents approximately 5% of all types of home sold in England, and nearly a third of all new-build home purchases.MHCLG’s figures also reveal that 211,000 properties have been bought via the scheme since it began in 2013 with a total value of £54.48 billion, and that the mean purchase price of a property was £258,223.Also, the image of cash-strapped young first time buyers using the scheme to buy apartments is undermined by the survey, which reveals that the most popular kind of home is a semi-detached house.Help to Buy equity loans are only available on new build properties and the maximum purchase price is £600,000. The loans are paid direct to house builders registered to take part in the scheme, which was recently topped up with an extra £10 billion in funding.Not everyone is wild about Help to Buy. Buying agent Henry Pryor (pictured, left) says: “It’s a policy that has been allowed to go on far too long and although I’m aware that there are many within the new homes industry who disagree with me on this, I’m utterly convinced it has corrupted the market.”Read more about Help to Buy.help to buy henry pryor equity loans May 1, 2019Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Land & New Homes » Revealed: how much newbuild industry is dependent on Help to Buy previous nextLand & New HomesRevealed: how much newbuild industry is dependent on Help to BuyLatest official government figures show that a third of all new home purchases are funded via the Government’s equity loan version of the Help to Buy scheme.Nigel Lewis1st May 201901,142 Viewslast_img read more