@ Anonymous148570 - very good post
8 replies (most recent on top)
It will be sold if it when CVX drops he price enough. A few field people will be kept by the new operator and everyone else will more then likely be laid off. They are actively seeking buyer and I heard they are trying to brokerage a deal currently. Don't know the scope or price just word on the St.
Yup, so did Apache . The shelf is still a viable opportunity for small independents once the price of oil goes up. Arena bought a few properties last year . The shelf won't be sold to one company, it must be packaged off to several small ones.
Hillcorp sold their entire shelf portfolio a couple of years ago. Why would they get back in now?
Unless Hilcorp moved their offices to Dallas recently, dont think they will win this lottery.
The likely buyer of the shelf assets will be Hilcorp. Hilcorp will retain the field staff, but jettison most of the office staff. Hilcorp has been the buyer of big assets in the recent past, such as Alaska and some south Texas properties. A former cvx employee works at Hilcorp, knows how we work, and is able to barter good deals (bend us over). I think his name is Robin S. Blind.
Were are not hearing anything in the O&M ranks. Thanks for the reply. Your speculation seems spot on.. My theory was that they would benefit by selling all of the shelf also and closing most of the Cov. Office down with the exception of DW Operations and consolidate everything they could in Houston. But as you said you never know
Here is one possibility. I do not know how the whole thing will play out. I am speculating based on several things I do know. The prevailing oil price point demands deeper staff cuts. The two best SPO offers were far below the asking price and not acceptable. Subsequently additional negotiations occurred. The pot is being sweetened with additional assets. Tier 1 and possibly select DW assets - all or a portion. Whatever it takes to get a 7 figure price. With those assets gone, the need for the staff servicing those assets is also diminished. Presumably, the purchaser would retain some or all of those personnel. The result is the desired divestiture amount is obtained by CVX and a reduction in staff also occurs with many of those staff retained by buyer. With the volume of additional assets, the Lafayette building might also be part of the deal. Ultimately the number of CVX employees requiring relocation is also reduced significantly. Based on the recent communications GOM employees have received, the deal would be executed in Q415; otherwise, it would not be possible to rollout an new org chart this year. Of course GOM leadership, such as it is, may just postpone a decision again (and again, and again...) but it seems booking the deal this year benefits GOM & CNAEP. This also gets us to our stated goal of having an exclusively DW portfolio sooner. Win-win in a lot of ways if the buyer retains our employees and non-retained are compensated with severance. What do others tkink?