There're lots of rumors out there but I assume it's all speculation, since no one from either side is talking. Is is on, off or still pending?
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Most of this is pure speculation on everyone's part. My opinion is that we will know sometime after the deadline on Tuesday. I hope a miracle happens and it goes through but am not betting the farm on it.
Typical Chevron, one person says one thing and another 180 the opposite.
I hope the GOMBU management is screwed when 40% of the staff is laid off in April. If they have to keep the shelf assets after the ESP and the staff is walked out the door, I hope they are eating $h!t by the EOY 2016.
There will be no deal with Cox, maybe someone else at a later date. The deadline was moved to 3/1/16, but Cox walked away.
Deal is 99% done and will be complete by late next week??? So, the next bit of news will be about the bargain basement price that Chevron gave away to Cox to complete the deal.
A lot of stupid people putting info they heard from stupider people. Deal is 99% done and will be complete by late next week.
The deal is dead....
I know that a representative of on the investors was in town less than 2 weeks ago regarding the CVX/COX deal. Maybe the fat lady hasn't sung yet.
LMAO, @3smk, getting his dumbass gradeschool post deleted. More dead wood to be cut!!
LMAO, @3smk. Funny picture using only the qwerty keyboard. Cox put GOM over a barrel.
The P&IDs are not to scale? Oh, my heavens! As a stockholder, I hope you're in scope.
@1hxy Thanks for the post. I was hoping the sale would go through, but have lost any hope of that happening. I heard Cox walked away from the deal. There were many flags from the beginning. Not sure what happens now considering such flaws exist, it is unlikely that there will be a sale for these properties anytime in the near future.
The Letter of Intent signed by Chevron obligates them to negotiate in good faith and disclose conditions included in the sale or it's a breach on their behalf. Why doesn't Chevron assume liability for these issues in question which have a monetary value attached to them? I think i's too late for Cox, but something needs to be done to rectify the problems for the next potential buyer.
As soon as someone introduces themselves as an HES rep at Chevron I dismiss them. Horrible function and he or she will be gone with the asset. These drawings are the easiest example to pick on and yes Chevron is updating them. EDG is the firm that is doing frantic work at this moment as i type. The HES rep, as usual is just cut out of the inefficient process. He will do 25 BBS observations and then not have a clue what a back flow valve is.....But as the other poster wrote, the truly big problem is the valuation. We have provided several reports all of them being different. Why, as what was written below, multiple data bases not tied in and creating zero repeatability. I know one of the Cox M&A managers. It's not one or two things it's dozens. For example Cox wanted to change a word in the agreement. Our legal discussed it with them. Then poof, no contact, no return phone calls. Rrpeated attempts for one dedicated team lead is ignored. We all know this! I can go on and on....materials of construction was asked for and blank stares. Process Safety Information was asked for, blank stares. You want another one? Reserves are always different with each subsequent report. Still lol at HES rep....JOKE!
that should have been @1uiv - good read
1yhb - good read. It going to be interesting to watch it all play out.
1-paq is 100% correct. Well articulated. Cox could be a low cost operator in the gulf but tier 2/3 isn't a gift horse and it's got to be looked at straight in the mouth. They knew they would be better if they invested in wells that are in shale plays. Why would they want to get involved in wells where BSEE is going to run the show. That deal would have subjected them into a BSEE black hole - with COX holding the bag! What benefit do their investors get by permanently abandoning wells? CVX has made no investment in the tier 2/3 properties since the year 2012. Even if you look at the deal without the P&A liability, you're buying marginal wells, with questionable & missing documentation. The bottom line is CVX shelf production is going down. It's going down because funding has been cut for development drilling and economical work over candidates. The failure of the GOMBU Tier 2/3 asset sale is running neck and neck with the unannounced failure to properly cool down Train 1 at Gorgon. Yep that's right- what?- you thought that we'd fill up the tank, turn the key and that $56 BILLION monstrosity would work??
How many wells were T&A and not P&A? How were they presented in the sale package? Where is the confusion coming from? This is not Cox's first rodeo, they aren't complete idiots and I would like the thing Chevron didn't intentionally misrepresent the wells.
Cox could not secure the bonding required for abandonment.
@1paq - that is the best read I have seen in a while. We live with a generation that doesn't give a damn about an honest days work, pride in what they do, they lack integrity, motivation and respect for anyone/anything including themselves. Chevron leadership is no different. I used to be amazed at the millions spent on consultants to reinvent the wheel that never made it full circle and the millions spent on programs/software that was never utilized, it is a very sad and sorry thing. Until management is held accountable nothing will change.
As we read through what is now several discussion threads over the last few months on the topic of the Tier2/3 asset sales it is really becoming clear how utterly dysfunctional Chevron has become. We are not the preferred partner we are the industry laughing stock. A company does not run itself by processes-that is flawed thinking. A company is run by people, "human energy" if you will, whose actions are aligned with a clearly articulated set of objectives linked to a functional business model. The only thing our leadership is aligned with is their next individual bonus. The absolute and undeniable failure to execute Gorgon, Wheatstone, Bigfoot...the list goes on, anywhere near budget targets and timelines is a clear and present indication of our systemic dysfunction. GOMBU is teetering on the edge of this dysfunctional precipice. Our inability to close a damn deal is a strong indicator. As we prepare for more failed divestments, dysfuntion prevails. This incredible effort to put sales montages together. WTF. Why in the hell dont we have an internal information system that generated this stuff at the snap of a finger? We have hundereds ofpeople working on this stuff using a dozen different software platforms linked to multiple databases mining data from days gone buy. It is so inefficient it is comical. And yet the mgmt pressure is on to "meet" the deadlines, so the employment guillitine drops sooner. And all the potential buyers want is today's production numbers and the reserve upside. By the time this sh*t gets executed, if it does, these fields will have been run into the ground. And after all this effort, we cant provide deliverables? A total Charlie Foxtrot & FUBAR.
The buyer can wait and watch the price fall to pennies on the dollar. What is the rush? In fact, Chevron shelf workers are better off in limbo than being sold and fired by the new owner.
These properties have been on the market for a while now and there's no one waiting line to buy them.
@1azw I know for a FACT Chevron has issues and not just with the P&ID's. Cox may have money issues, but Chevron has problems on their end. If you are HES for these properties, I would be concerned for my job if I were you!!
The prospective buyer can't close. Other know buyers will jump on these assets.
1gje - -If you are a Chevron employee the you should know the GOM carried you sorry A$$ for quite sometime and if you have such a problem...be a man and leave, see who will hire and put up with you.
@1azw, it's you who should stop spreading misinformation. The problem with Cox balking has nothing to do with $$$. The assets are worth what is being offered up for sale. Chevron has a problem with important deliverables. The outdated or non existent P&IDs is only one of the big concerns.
They are still waiting to flush the toilet once they have all the GOM liquid feces (aka Cajun cunts of SE Louisiana) in one toilet bowl - then the drain pipe opens. Gonna have to be a big toilet bowl. Then Chevron can be done with this disgraceful BU once and for all.
This talk about P&IDs is complete BS. I'm in HES supporting ops for these properties and there has not been any concern related to P&ID accuracy to the people in control of the P&IDs. This is just some troll stirring up BS. Cox has a lot bigger issues than this, like $$$. If the P&IDs were bad we'd have heard about it and we have not. Did the 8 employees of Cox walk these down and find all these supposed errors? Go away, idiot.
The P & ID's show electrical area classifications? Wow. that IS SCARY !!! LMAO!
WOW!! That is a WTF! If I may ask, what will Chevron do to correct the problem??? It will be a legitimate issue for any/every buyer. How do you sell it?? So what happens to all of those employed by Chevron who work on those facilities that signed the job offers? And no doubt may of the support staff who support those properties would have been cut loose now can't be factored into the equation for layoffs. They didn't have many buyers knocking on the door before Cox....Fieldwood left the scene quickly on to better things.
Well not to Cox specifically but to the sale yes! Watson also has repeated this publicly. The deliverables were already mentioned. I think the best example is the P&ID's. They are so out of whack it's scary. Chevron has put non classified equipment in Class I Div I areas. Not the exception but the rule! Most are not even to scale. I see this as no surprise. They supplied Cox with several ORIGINAL drawings???? WTF???
● Posted on February 19, 2016 | By Jordan Blum
● Chevron is placing all of its shallow Gulf of Mexico acreage up for sale with a goal of unloading the assets by the end of 2017, the company confirmed Friday.
They committed publically to the Cox sale? I've never seen it. What are the "deliverables" they couldn't produce?
I can't believe that Chevron almost always gives away the store. It's management's job to make sure these kind of things don't happen. Now again, that we will not reap the value of our assets, the people at the top must be called to task and fired. No severance either! Let that serve as examples to the other twerps who get paid the bucks but can't do their job. Until when will the enterprise support this kind of ineptness?
It is true that Chevron could not provide "deliverables" to close the deal. Lol at close a screen door. They are still in negotiations and the assets will be sold. They have publicly committed to the sale. So one way or another (lower asset sale price), the assets are gone.
Doesn't that shift or effect layoffs for the the support staff and offshore personnel that CVX was planning to layoff or sell with the properties to Cox? All of those offshore personnel were interviewed and many excepted job offers from Cox, some didn't and CVX moved some to keep...what happens now? Do they just pretend it didn't take place and business as usual?
Something else will be sold instead
What happens if there is no sale?
You cant CPDEP your way through a deal. We cant close a screen door let alone an asset divestment deal. GOMBU leadership is clueless. Tip of the iceberg. GOMBU dysfunction prevails.
The rumor is the sale with Cox is now off. It was pending until many of the required engineering and legal documents, P&IDs, drawings were not available or couldn't be located. Cox ended their intent to purchase with Chevron. One can speculate this was a move by Cox to gain levarage over Chevron in order to renegotiate a lower price or simply to enable Cix to move on to other acquisition opportunities elsewhere. We'll see what happens. It might be a question of who blinks first before this deal is back on.