Strategic

In a strategic deal that would create the world’s third-largest offshore driller, Pride International agreed to buy Marine Drilling Cos. for $1.92 billion in an all-stock deal Thursday. The new company, to be called Pride International, has already received approval by both boards.

Barrett Resources Corp.’s move to provide “strategic alternatives” to its shareholders, and thus, increase the value if it is taken over, appears to have paid off. This week, the Denver-based independent apparently received at least two more bids to compete with Royal Dutch/Shell Group’s offer of $60 a share. Barrett had set a deadline of Wednesday for other companies to make an offer.

Duke/Fluor Daniel (D/FD), a joint-venture partnership of FluorCorp. and Duke Energy, announced a management realignment andstrategic development to strengthen its engineering, procurementand construction (EPC) operations as well as its diverse operatingplant services (OPS), businesses. “With an increased need for powergeneration, the expansion and realignment of Duke/Fluor Daniel’smanagement team enhances the partnership’s ability to capitalize onthe tremendous growth of our EPC business,” said Alan Boeckmann,president of Fluor Corp. “Duke/Fluor Daniel has become a marketleader and, in 2000, was building about one out of every threemegawatts under construction in the United States. Three keyleaders in our team will focus on the same goal: excellence inexecution of every EPC contract.” Ron Barnes will lead projectoperations for a significant portion of business from Duke EnergyNorth America. Abe Fatemizadeh will focus on project operations forDuke/Fluor Daniel’s external clients. Chris Tye will manageDuke/Fluor Daniel’s global operations.

The Department of Energy’s National Energy Technology Laboratory(NETL) through its Strategic Center for Natural Gas released asolicitation for proposals to improve the reliability of thenation’s natural gas infrastructure. NETL expects to fund researchand development projects totaling up to $10 million over athree-year period through this solicitation. Multiple awards areanticipated with industrial participants expected to contribute atleast 35% of each selected project’s cost. The proposals are due byJan. 9, 2001. The solicitation is available at the NETL web sitehttp://www.netl.doe.gov/business/solicit/index.html . For moreinformation, contact David J. Anna, (412) 386-4646, or e-mail:anna@netl.doe.gov .

Marathon Group, a unit of USX Corp., said the strategicre-organization of its upstream business is largely complete but anadditional 250 positions likely will be eliminated, leaving theupstream business with 24% fewer employees than in 1999. “We haveplans in place for dramatic change and improvement and I believethat the organization is both ready for change and able to deliveron our commitments,” said Company President Clarence Cazalot.Cazalot introduced a new senior leadership team in September afterannouncing the restructuring plan in October. Commenting on thecompany’s target of implementing $150 million of annual repeatableefficiencies by the end of 2001, Cazalot said, “We are on track todeliver a $75 million reduction in above-the-field costs and wehave made substantial progress towards cutting exploration expensesby $50 million. As we also realize annual savings of $25 millionthrough global procurement, we are well on our way to meet ourambitious overall target.”

High energy prices and strategic actions initiated since 1997have added $1.25 per share in recurring earnings annually forOccidental Petroleum and allowed the company to pay down asignificant amount of debt this year, said CEO Ray R. Irani at thecompany’s meeting last week with financial analysts in New York.But its stock price remains in the basement at about $20/share wellbelow that of many of its peers.

High energy prices and strategic actions initiated since 1997have added $1.25 per share in recurring earnings annually forOccidental Petroleum and allowed the company to pay down asignificant amount of debt this year, said CEO Ray R. Irani at thecompany’s meeting yesterday with financial analysts in New York.But its stock price remains in the basement at about $20/share wellbelow that of many of its peers.

Mobil Canada and Imperial Oil Ltd. said last week that as ofNov. 15 the companies will form a strategic business alliance tocreate synergies while pursuing new oil and gas production venturesin Canada. Even though ExxonMobil owns Mobil Canada and a 69.7%majority share of Imperial Oil, the move is not a merger of thecompany’s Canadian assets. Instead, the companies will share commonbusiness and operational support services while remaining separateoperating entities.

Mobil Canada and Imperial Oil Ltd. said yesterday that as ofNov. 15 the companies will form a strategic business alliance tocreate synergies while pursuing new oil and gas production venturesin Canada. Although it is not a merger, the companies will sharecommon business and operational support services.