Companies in the news

Conoco and Phillips have agreed to merge in a $35 billion strategic combination. Both boards have unanimously approved the merger of equals. The new company will be named ConcoPhillips. This combination creates the third-largest integrated U.S. energy company and the six largest in the world, based on market capitalization and reserves and production, as well as the fifth-largest global refiner. Under terms of the signed agreement, Phillips shareholders will receive one share of new ConocoPhillips common stock for each share of Phillips they own, and Conoco shareholders will receive .4677 shares of the new firm’s stock.

Anadarko Petroleum and El Paso Energy Partners (EPN) formed an innovative alliance to jointly develop Marco Polo, Anadarko’s first deepwater project on Green Canyon Block 608 about 150 mi offshore Louisiana in the Gulf of Mexico. Plans include a platform in 4,300 ft of water that will also function as a hub for nearby production. EPN will own the platform with Cal Dive International, Inc. Production capacity will be 100,000 bopd and 250 MMcfgd, and is slated to be online in 2004. Output will be transported through a new gathering pipeline owned by EPN to downstream markets. Oil will be transported through a new 34-mi, 14-in. pipeline and EPN’s Allegheny oil pipeline to its 50% owned Ship Shoal 332 platform.

Weatherford International, Inc., agreed to purchase Johnson Screens division from Vivendi Environment. Johnson provides screens for fluid-solid separation processes. Meanwhile, Weatherford also acquired BD Kendle Engineering Ltd., a UK-based manufacturer of premium well servicing tools and associated equipment.

Wintershall BM-ES-1 Limitada, a wholly owned affiliate of Wintershall AG, agreed with Esso Exploracao Espirito Santo Limitado (ESSO) to acquire a 25% non-operating share in the BM-ES-1 Espirito Santo basin offshore, Brazil, exploration block. The block encompasses about 1,050 sq mi in about 5,000 – 10,000 ft of water.

Turner Industries formed Turner Asset Management Solutions, which operates as a division of Turner Corp.

Mitsui Babcock and MacGregor Energy Services formed an alliance to capitalize on opportunities in the global energy market. MacGregor specializes in business solutions, while Mitsui Babcock’s expertise is in global energy solutions.

Kvaerner reached an agreement with its largest shareholder, Aker Maritime on a comprehensive industrial and financial solution for the Kvaerner Group. Kvaerner will secure new equity through a directed equity issue, a subsequent rights issue, and through the merger of Aker Maritime’s core business with Kvaerner Oil & Gas.

BP Exploration formed a five-year production optimization alliance with Emerson Process Management to provide real-time production optimization systems for its upstream oil and gas facilities. Several BP facilities are using the system, and this agreement will focus on maximizing gains across the corporation.

EDG, Inc., Consulting Engineers and Albert Garaudy and Associates formed a joint venture to provide management, construction management and engineering services on capital oil and gas facilities projects. The new entity, Freo Facilities Group, combines the onshore / offshore capabilities of the two independent engineering consulting companies to align services with global operators. Resources will be expanded to staff capital projects with high man-hour demands on a project-by-project basis.

Stewart & Stevenson celebrates its 100th anniversary this year. Meanwhile, the firm has completed building a new 170,000-sq-ft facility at the Chalk Hill Road exit of I-30 in Dallas, Texas. The new facility includes a 42-bay service area capable of handling large vehicles. Complete testing, repair and rental services are available for all types of products offered by Stewart & Stevenson.

CMS Energy sold all of its ownership interests in Equatorial Guinea, West Africa, to Marathon Oil for about $1 billion. The sale, subject to government approval, is expected to close early 2002.

Abbot acquired Deutsche Tiefbohr-Aktiengesellschaft for £134 million.

Nexen has acquired 50% working interest in Lease 27, a heavy oil recovery and field upgrading project near Fort McMurray, Canada from OPTI Canada. Nexen will operate the lease with responsibility for the construction and development of the proposed steam assisted gravity drainage (SAGD) portion of the project. The 3,000-bpd pilot project is slated for 2002, followed with a 35,000-bpd commercial SAGD project. OPTI will be responsible for the design, construction and operation of a 60,000 – 70,000 bpd upgrader.

Grant Prideco acquired the rights to Plexus International Ltd.’s technology for use in deepwater E&P, production applications and jack-up exploration wellheads. It joins and seals concentric members, and is particularly suited to supporting and sealing casing hangers and making casing, riser, pipeline or wellhead connections.

ProMinent ORLITA is now marketing their high-end metering pumps in the U.S., including their MF series hydraulic double PTFE diaphragm, Mh series hydraulic stainless steel diaphragm, PS plunger and the unique DR valveless pump, enabling metering of highly viscous liquids that also might contain large suspended solids.

Following a strategic re-orientation, The Dietsmann Group sold its UK subsidiary Dietsmann Morgan Moore Ltd. through a management buy-in group led by Mike Main. The Dietsmann Group now aims to focus on markets in the Middle East, Far East, Africa, the Mediterranean and Central Asia.

The University of Aberdeen opened its new Scottish Offshore Materials Centre in November. It will be jointly run by the University’s Engineering and Chemistry Departments, and will be a high pressure, high temperature facility based in the engineering department.

Weatherford International, Inc., signed an agreement to acquire CiDRA Corp. Optical Sensing Systems unit, which is commercializing a suite of permanent downhole fiber-optic sensor systems. The technologies consist of pressure temperature gauges, flow and phase fraction systems, as well as an in-well seismic system.

BP completed its acquisition of Solvay and added its global polypropylene business to its existing business. The two companies have combined their high-density polyethylene business into two joint ventures (JV). BP has also transferred its non-core engineering polymers business to Solvay.