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GENERAL INTEREST QUICK TAKES
Lucid to sell Delaware basin unit for $1.6 billion
Lucid Energy Group, Dallas, agreed to sell Lucid Energy Group
II LLC (Lucid II), to a joint venture controlled by Riverstone
Global Energy and Power Fund VI LP, an investment fund managed by Riverstone Holdings LLC, and investment funds managed by the Merchant Banking Division of The Goldman Sachs
Group Inc. for $1.6 billion in cash. The transaction includes
committed debt financing provided by Jefferies LLC.
The Lucid II assets, in the northern Delaware basin, include
the South Carlsbad and Artesia natural gas gathering and processing systems.
The deal includes 1,700 miles of natural gas gathering pipelines and 585 MMcfd of processing capacity. An additional 200
MMcfd is under construction and scheduled to be in service by
Lucid II holds long-term dedications and production volume commitments from oil and gas producers operating in the
450,000 acres spanning New Mexico’s Eddy and Lea counties.
Privately held Lucid Energy Group holds more than 1 bcf of
gas processing capacity in operation or under construction in
the Permian basin and more than 2,400 miles of pipeline assets. EnCap Flatrock Midstream serves as its financial sponsor.
Lucid II will retain its name and operate as a Riverstone and
Goldman Sachs MBD portfolio company. The members of the
Lucid management team will remain in their current roles with
Closing is expected in the first quarter of this year.
Court rejects climate challenge to licenses
Two environmental groups have lost a court fight against Arctic
oil and gas licenses off Norway that they called the first lawsuit
claiming governmental violation of the Paris climate accord.
The Oslo District Court supported the Norwegian Ministry
of Petroleum and Energy against a challenge to its issuance of
10 licenses covering 40 blocks in the Barents Sea (OGJ Online,
May 18, 2016).
Greenpeace and Nature and Youth said award of the licenses
in Norway’s 23rd licensing round violated the country’s constitution and the Paris accord.
The court disagreed and ordered plaintiffs to pay court costs.
Operators of the blocks in question are Statoil Petroleum
AS, Capricorn Norge AS, Centrica Resources (Norge) AS, Det
Norske Oljeselskap ASA, and Lundin Norway AS. Three other
companies hold interests.
Oil firms agree to cut methane emissions
BP PLC, Eni SPA, ExxonMobil Corp., Repsol SA, Royal Dutch
Shell PLC, Statoil ASA, Total SA, and Wintershall AG have
committed to further reduce methane emissions from natural
The companies signed a Guiding Principles document in
2017 put forth by the Climate & Clean Air Coalition (CCAC)
to address priority areas for action highlighted in the International Energy Agency’s World Energy Outlook 2017.
The principles focus on continually reducing methane emissions, advancing strong performance across gas value chains,
improving accuracy of methane emissions data, advocating
sound policies and regulations on methane emissions, and increasing transparency.
Companies plan to work, in part, through various partnerships, studies, and collaboration with industry groups, institutions, governments, and others across the gas value chain;
establishment and maintenance of monitoring and reduction
plans; improvements in methane emissions data collection
methodologies and data; and efforts to provide and standardize
relevant reports and reporting processes.
Tim Gould, head of the supply division, World Energy Out-
look, IEA, called credible action to minimize methane emis-
sions “essential to the achievement of global climate goals, and
to the outlook for natural gas.” He said, “Implementing all of the
cost-effective methane-abatement measures worldwide would
have the same effect on long-term climate change as closing all
existing coal-fired power plants in China.”
The document signed by the companies was developed in
collaboration with the Environmental Defense Fund, IEA, In-
ternational Gas Union, Oil & Gas Climate Initiative Climate
Investments, Rocky Mountain Institute, Sustainable Gas Insti-
tute, Energy & Resources Institute, and United Nations Envi-
The companies agreed to encourage other companies to apply the principles.