Member Info for Slift

"They won't settle for 500$ millions. Period."

You may be right, but wouldn't be certain about it. I think they might settle for $600-700m.

Occidental have been trying to sell their Africa portfolio since 2019.
For a company of that size, they will take some loss here to move on. Don't forget the Africa portfolio was part of Oxy's $55b takeover. Of which, they have already sold majority of the Africa portfolio for around $8-10bish.
They certainly aren't going to be looking for a few mills here and there to complete their goal.

Not sure why this sale is a "red flag" lol.
This sale will bolster up PFC's finances.
The in-person training business is a loss making cash burn in the CURRENT environment.

For Petrofac:
Petrofac is taking the initiative to offload business they feel will not grow as much in the future - note focus is more on "digital and online learning".
Petrofac comments:
"Global head of Petrofac training services, Patty Eid, said: “We have refocused our North Sea offering with an emphasis on digital competency management, online learning and emergency response."

For 3t Energy:
The acquisition of this business is at a value much lower than what it should and what it could have been. Therefore, this business is "transformational" for 3t Energy.
However, they are also banking on the economy recovering to make the acquired business more cashflow positive. I.e. opening up the economy such that in-person training can be provided without any restrictions to social distancing as well as group training (i.e. classes).
Currently, majority of the training bought by companies is remote training via Zoom, Teams, etc.

3t Energy comments:
"Mark Corrigan, chairman of 3t Energy, stated: “This is a strategic acquisition for 3t Energy which will have a transformational impact on the group."
"“As we all hope the world returns to some normality after a tumultuous 2020, we believe there will be a huge opportunity for us to grow our business further as companies and individuals focus on up-skilling and core competencies to meet the challenges of the post pandemic economy.”"

But it's great that you're stalking my posts ;)

No, I do follow westmount energy for their indirect interest in Guyana-Suriname basin.

"As part of the initial drilling operations in 2019, the wellhead assembly was fitted with a cap containing a transponder for the relaying of monitoring data from downhole gauges and a basket was placed on the seabed adjacent to the well containing associated wireless telemetry equipment."

2019 when Lincoln Crestal was drilled and found to have flowing oil.

Sure, click the link then.

"PFML intend to go back to abandon the well this year, which would include an as left survey, so further efforts will be made then to locate and recover. If not found, no other action will be taken."

https://kingfisherbulletin.org/notice-map?noticeId=1298

Because this was a mistake and a very bad deal for Tullow.
Oh wells, time to move on with the reduced growth potential.

Interesting to see how the Ghana drilling progresses in 2021. Drilling is meant to start this month.

This was a fire sale, no doubt. But Petrofac likely got enough for it.
The business that was sold is a cash burn in the current environment. 3t Energy bought on the hopes the economy picks up again and the recently bought business starts producing some meaningful revenue.

In Petrofac's current situation, when combined with sale price and cost savings by selling this in-person training business, it likely worked out as a good deal.

I don't believe in-person training will be as effective as it once was prior to the pandemic. I mean, majority of people are and will be working from home for some years to come.

Denby69,

I don't think someone would plead guilty if there was no evidence against them.
According to SFO case reports: There is evidence that payments were "ultimately made" or "due to be made" by Petrofac to agents.

I think the issue that SFO are facing now is that accounts are not proved and there is no link to any BOD.
But given X more number of years of heavy investigation, SFO will likely find the link.
$80m in outflowing cash will crop up somewhere.

But it's not in the public interest for SFO to drag this on for decades to find that link.

lol bigsmokey, I have a day job!
Gotta have the money rolling in haven't I? ;)

https://www.reuters.com/article/us-occidental-m-a-carlyle-group/carlyle-in-talks-to-acquire-occidentals-ghana-oilfields-sources-idUSKBN2BO4YR

24% Jubilee Stake @ 16.5k bopd (2021)
17% TEN Stake @ 5.8k bopd (2021)

2P reserves estimated at 108-110mmboe
2C resources estimated at approx. 200mmboe

for "over $500m".
Looks pretty cheap to me.

Paddy,
The difference between RR and PFC is that an individual (former employee of PFC) has pleaded guilty to charges on several counts.
All counts for the benefit of Petrofac as the contract receiver. All counts where it is Petrofac that paid the bribe money. All counts where the beneficiary party is Petrofac (in terms of contract awards won).

I don't believe Petrofac itself can be charged/convicted without further evidence of BOD involvement.
But Lufkin's guilty pleas are all directed towards Petrofac. So SFO will find evidence if enough time is provided to them. You don't just have c. $80m cash outflow without the knowledge of a BOD.

However, the management has changed. The executive board of Petrofac has changed altogether, so would be pointless for SFO to carry on this investigation for X more number of years.. and would be pointless for Petrofac to let SFO continue this as this is damaging their prospects.

So a DPA with a fine is most likely outcome. Not because SFO has direct evidence against Petrofac, but they do have indirect evidence against Petrofac on 14 counts.

https://www.energyvoice.com/oilandgas/311974/3t-energy-confirms-purchase-of-petrofacs-uk-training-centres-in-transformational-deal/

Further employee size (104) and revenue reduction.
However, this should boost Petrofac's current finances. Would be interesting to know how much this was sold for.

wtf? lol
How is today any different from any other day for HUR?

Sea of idiots on this board today

Never seen this much excitement over a 5% rise before.

People sure are getting desperate for this to rise lol

Interested in knowing current watercut.

Yes!

23.75% --> 24.56% is a HUGE REDUCTION in w/c!

Blatant rampers and gamblers getting desperate

"Only 30 hours late lol"

The winners were announced today approx. 12 hours ago.

There's a big difference being nominated and winning amongst competitors!
Winning here has definitely boosted Petrofac's chances of securing future projects in Oman.
Petrofac had delivered this project on time and under budget benefiting the client as well as Petrofac's margins.

In a way, this has the opposite effect to SFO.

Let's hope Petrofac lands a decent sized project on the back of this.