Stake

After retreating from war-torn Sudan earlier in the week by selling its stake in Sudan’s major oil project to India’s national oil company for C$1.2 billion ($760 million), Canada’s No. 2 producer, Talisman Energy, said Friday it is buying the assets of Fairman Drilling Co., FDC Venture 15 LP, East Resources Inc. and ABARTA Oil & Gas Co. Inc. for US$58.6 million. The purchase is being made through Talisman subsidiary Fortuna Energy Inc.

Energy Transfer Co., a privately held Dallas-based company, is paying $265 million in cash for Aquila Inc.’s 50% ownership in the 600-mile Oasis natural gas pipeline system, as well as the company’s Southeast Texas and Mid-Continent pipeline systems, which include natural gas and gas liquids processing assets. In just a few months, Aquila has announced asset sales totaling $483 million.

Exxon Mobil Corp., which owns a 25% stake in Thunder Horse — the largest oil and gas discovery to date in the deepwater Gulf of Mexico — this week approved an undisclosed amount of money to fund its share of development costs. Together with 75% stakeholder BP, the Houston-based major will begin construction of what will become the world’s largest semi-submersible floating production, drilling and quarters (PDQ) unit, with a total operating displacement of more than 140,000 tons. The project is scheduled for initial oil and natural gas production in 2005.

Energy Transfer Co., a privately held Dallas-based company, has agreed to pay $265 million in cash for Aquila Inc.’s 50% ownership in the 600-mile Oasis natural gas pipeline system, as well as the company’s Southeast Texas and Mid-Continent pipeline systems, which include natural gas and gas liquids processing assets. In just a few months, Aquila has announced asset sales totaling $483 million.

Following the lead of other multi-faceted energy marketers forced to sell income-producing assets to build cash, CMS Energy Corp. is negotiating the possible sale of its entire domestic pipeline and field services businesses, worth a combined net value of $1.4 billion. Assets on the table include the Panhandle Eastern and Trunkline interstate natural gas pipelines, the Lake Charles, LA, liquefied natural gas (LNG) receiving terminal, CMS Field Services’ gas gathering and processing assets, and its one-third ownership interest in Guardian Pipeline.

Conoco Canada said Wednesday it will join with operator ChevronTexaco Canada and Petro-Canada, and take a 20% stake in a well being drilled off the coast of Nova Scotia, a region where Conoco plans to spend more time and money into the future. ChevronTexaco Canada is drilling the Newburn H-23 well off the Atlantic Coast, and Conoco will earn a 20% interest in the EL2359 block through participation in the well, which is expected to be completed in early September. The well is currently being drilled at a water depth of 3,115 feet (950 meters). As operator, ChevronTexaco’s interest in the well after drilling will be 37%, with the remaining 43% percent held by Petro-Canada. Terms of the transaction were not released. “This is a further step in Conoco’s strategy of increasing our investments in long life projects in Canada and particularly off the Atlantic Coast,” said Conoco Canada’s President Henry Sykes. “We already have an interest in substantial acreage offshore Newfoundland in the Laurentian Basin, and the EL2359 block will give us an entry into the Scotian Shelf, an area of significant exploration interest.”

More than $500 million is at stake in a growing dispute between Sempra Energy’s San Diego Gas and Electric Co. utility and various political, regulatory and consumer leaders, resurfacing recently with the release of sworn testimony by an SDG&E executive.

Alberta’s First Nation and Metis aboriginal groups are signaling a more active participation in Canada’s energy exploration and development, after signing an agreement Tuesday with Lakota Drilling to transfer the ownership and eventually the full operatorship of three heavy-duty drilling rigs. Collectively, the aboriginal groups will eventually invest a total of C$13.5 million toward the overall purchase cost of the rigs, and EnCana Corp. has made a minimum four-year drilling commitment at competitive rates to ensure that the rigs are fully engaged.

PacifiCorp Energy Canada’s Enstor division said last week that it has acquired Dominion Canada’s 40% stake in the Alberta Hub natural gas storage facility. The company’s affiliate, PacifiCorp Power Marketing Inc. (PPM), said it plans to market the capacity and add more storage facilities to its portfolio in the near future. Terms of the transaction were not disclosed.