Swap

Apache Corp. and Amerada Hess Corp. have agreed to a land swap, with Apache selling its 55% interest in a deepwater section off of Egypt’s coast for $413 million and Hess selling eight fields in the Permian Basin of West Texas and New Mexico for $404 million.

Kerr-McGee Oil & Gas Corp. and BP plc executed a property swap last week, with BP giving up its 37.5% working interest in the deepwater Gulf of Mexico Blind Faith discovery. In exchange, BP will receive an undisclosed amount of cash and interests in several oil and natural gas assets in the Arkoma Basin of southeast Oklahoma.

Kerr-McGee Oil & Gas Corp. and BP plc have executed a property swap, with BP giving up its 37.5% working interest in the deepwater Gulf of Mexico Blind Faith discovery. In exchange, BP will receive an undisclosed amount of cash and interests in several oil and natural gas assets in the Arkoma Basin of southeast Oklahoma.

Kerr-McGee Oil & Gas Corp. and BP plc have executed a property swap, with BP giving up its 37.5% working interest in the deepwater Gulf of Mexico Blind Faith discovery. In exchange, BP will receive an undisclosed amount of cash and interests in several oil and natural gas assets in the Arkoma Basin of southeast Oklahoma.

Duke Energy Field Services (DEFS) and a unit of Williams have agreed to an exchange of natural gas gathering and processing interests located in Wyoming, Texas and Oklahoma. Under the agreement, Williams will receive DEFS’s 34% interest in the Echo Springs processing plant and related gathering system near Wamsutter, WY. In exchange, DEFS will receive Williams’ Oklahoma-based Hugoton gathering system and three gas processing plants: Baker, in Baker, OK; Hobart Ranch, in Canadian, TX; and South Bishop, in Ellis County, OK.

The Houston Exploration Co., headquartered in Houston, announced new hedges for 2003, committing 40,000 MMBtu/d of the company’s 2003 annual production at a swap price of $3.19/MMBtu. Earlier this month, Houston Exploration announced it had entered into an agreement to purchase South Texas properties from Conoco Inc. for $69 million. The new hedges will ensure the necessary cash flow to fund planned development in these properties in 2003, the company said in a written statement. Houston Exploration expects the transaction to close on Dec. 31, 2001 with an effective date of Jan. 1, 2002. The company’s hedging strategy is part of a corporate risk management program used to achieve more predictable cash flows. For 2002, current hedged volumes total 210,000 MMBtu/d with an average effective floor of $3.40 and an average effective ceiling of $4.66. Hedged volumes represent approximately 72%-77% of Houston Exploration’s 2002 estimated production volumes.

In a $3 billion stock swap, Santa Fe International Corp. agreed last week to purchase Global Marine Inc., which will create the world’s second largest offshore oil and natural gas driller, behind Transocean Sedco Forex. The merger of the equals gives them more flexibility to serve the marketplace and provide equipment for customers anywhere in the world, especially with many of their shared customers now merged.

In a $3 billion stock swap, Santa Fe International Corp. has agreed to purchase Global Marine Inc., which will create the world’s second largest offshore oil and natural gas driller, behind Transocean Sedco Forex. The merger of the equals gives them more flexibility to serve the marketplace and provide equipment for customers anywhere in the world, especially with many of their shared customers now merged.

Small producer Canadian Superior Energy launched a takeover bid for Canadian 88 Energy Corp. last week. The stock swap deal would put Canadian 88’s maverick former CEO Greg Noval back in control of the firm. Noval is offering 2.75 Canadian Superior shares for each share of Canadian 88, which he left last year after a change of control. The deal is worth about C$4.95 a share, or C$700 million (US$451 million).