Deals wrap: Diamondback and Endeavor merger, Adnoc and BP's JV in Egypt, Chesapeake, Gunvor and Delfin sign LNG deal

The deal of the week was the USD 26 billion merger between US Permian producers Diamondback and Endeavor. The combined group would have access to a pro forma scale of ~838,000 net acres and 816,000 Boe/d of net production.

Also noteworthy is the joint venture gas company to be set up by ADNOC and BP in Egypt. This is a continuation of ADNOC's expansion internationally. 

Diamondback and Endeavor agree USD 26 billion merger deal

Diamondback Energy and Endeavor Energy have agreed terms on a USD 26 billion merger deal to create a “premier Permian independent operator” with combined net production in excess of 800,000 Boe/d.

Under the terms of the deal, Diamondback will pay USD 8 billion in cash, while also transferring 117.3 million shares of Diamondback stock to Endeavor ownership.

Following the deal, Diamondback’s existing stockholders will own approximately 60.5% of the combined group with Endeavor owning the remaining 39.5% of outstanding stock.

ADNOC's expansion continues after agreeing Egypt JV with BP

BP and ADNOC announced plans for a joint gas venture in Egypt which will give the Abu Dhabi-based company access to a number of assets in the country, including the offshore Zohr field.

A statement said the JV (BP 51%, ADNOC 49%) will combine to two companies’ “deep technical capabilities and proven track records as it aims to grow a highly competitive gas portfolio”.

BP will transfer its interests in three development concessions, as well as exploration agreements, in Egypt to the new JV. Meanwhile, ADNOC will “make a proportionate cash contribution which can be used for future growth opportunities,” the statement said.

Chesapeake, Gunvor and Delfin agree 0.5 mtpa LNG supply deal for 20 years

​Oklahoma-headquartered Chesapeake Energy, Delfin LNG and commodities trader Gunvor announced the entrance into an LNG export deal for 0.5 mtpa over 20 years, starting in 2028.

Under a Sales and Purchase Agreement (SPA), Chesapeake will purchase the LNG from Delfin at a Henry Hub price, then deliver to Gunvor on an FOB basis with the sales price linked to the Japan Korea Marker (JKM).

These volumes will represent 0.5 mtpa of the Heads of Agreement (HoA) with Gunvor for up to 2 mtpa which was announced in March last year. 

QatarEnergy selects Nakilat to own and operate up to 25 conventional LNG vessels

QatarEnergy announced that it has selected Qatar Gas Transport Company Limited (Nakilat) to be the owner and operator of up to 25 conventional-size LNG carriers pursuant to Time Charter Parties (TCP) to be entered into by affiliates of QatarEnergy and Nakilat.

This constitutes the first award in the second batch of long-term TCPs under QatarEnergy’s LNG Fleet Expansion Project.

QatarEnergy anticipates selecting additional bidders as vessel owners and announcing these awards in due course, the company said.

Mitsubishi Power receives order for Uzbekistan's Navoi 3 CCGT power plant project

Mitsubishi Power received an order for one system of core equipment for a power generation facility for the third facility planned to be built at the Navoi Power Plant (Navoi 3) by JSC Thermal Power Plants, the state electric power corporation of Uzbekistan.

The planned system will comprise a gas turbine combined cycle (GTCC) with 600 MW of power capacity.

Commercial operation is scheduled to start in 2026. This is the third order received by Mitsubishi Power for GTCC equipment for the Navoi Power Plant.

Aker Solutions wins FEED contract for 1 GW Korean offshore wind project

Aker Solutions has been awarded a front-end engineering and design (FEED) contract for Haewoori Offshore Wind 2 (500MW) and 3 (500MW), Copenhagen Infrastructure Partner’s (CIP's) floating offshore wind projects off the coast of Ulsan, Korea.

Work will start immediately on the FEED and is due to be completed by November 2024.

Separately, Aker also said it has been awarded a contract by Equinor to carry out a feasibility study for its Mongstad Industrial Transformation on the west coast of Norway. The scope includes a new greenfield facility which will be developed to produce blue hydrogen from natural and refinery fuel gas, along with a carbon capture and export solution.