• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 1 min Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 38 mins Here's your favourite girl, Tom!
  • 2 hours Civil Unrest Is Erupting All Over The World, But Just Wait Until America Joins The Party...
  • 2 mins Australian Hydroelectric Plant Cost Overruns
  • 12 hours Brexit agreement
  • 4 hours China's Blueprint For Global Power
  • 4 hours Nigeria Demands $62B from Oil Majors
  • 17 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 19 hours IMO 2020:
  • 21 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 13 hours 5 Tweets That Change The World?
  • 12 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 15 hours The Problem Is The Economy, Not The Climate

Breaking News:

Russia Replacing Oil Workers With Robots

Are Sci-Fi Energy Sources Even Possible?

Are Sci-Fi Energy Sources Even Possible?

There are some wild and…

Oil Markets At Stake As The Syria Debate Rages On

Oil Markets At Stake As The Syria Debate Rages On

The potential withdrawal of the…

Blackstone Snatches Up Permian Oil Assets

Pioneer rig

Blackstone Group LP is partnering with two energy companies to buy assets in the Permian, one of the few shale plays in the U.S. where production is still profitable at current oil prices. The companies involved are Jetta Operating Company and Guidon Energy.

With Jetta, Blackstone will look for attractive assets in the Delaware Basin in West Texas as well as in southern New Mexico, for which purpose the partners have allocated US$1 billion.

The second partnership, with assets of US$500 million, will focus on assets in the Midland Basin. Blackstone said, as quoted by Bloomberg, that later on it is willing to add more funds to this partnership.

The Permian has been attracting a lot of attention this year because of low breakeven prices there. In June, when the number of active drilling rigs started rising for the first time since the tanking of oil prices in February, five of the new rigs that were brought on stream were in the Permian.

Operators of oil fields in the Permian started ramping up production as oil inched higher, and a number of private equity firms got interested in the play. Pioneer Resources, for one, said in June that it was planning to allocate US$1.8 billion – that’s 90 percent of its budget – to its Permian business. Occidental Petroleum, another major in the Permian, said it was going to spend US$3 billion to raise its output in the play by 4-6 percent.

Now, the two Blackstone deals yet again highlight the attractiveness of the Permian, once called America’s sleeping giant, which has this year seen the bulk of asset acquisition deals in the energy industry, with their combined value close to US$10 billion. In comparison, the second most popular destination for asset buys – the Scoop/STACK play – has attracted about US$2.5 billion in acquisition deals so far this year.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play