ENBRIGE & SPECTRA: $127 BLN
OGJ wrote, Enbridge Inc. and Spectra Energy Corp. have entered into a definitive merger agreement under which the two companies will combine in a stock-for-stock merger transaction. The combination will create the largest energy infrastructure company in North America and one of the largest globally, the companies said, based on a pro-forma enterprise value of roughly $127 billion.
The merger, which valued Spectra Energy common stock at $28 billion, is expected to close first-quarter 2017, subject to shareholder and regulatory approvals and other customary conditions.
Spectra shareholders will receive 0.984 shares of the combined company for each share of Spectra Energy common stock they own. The consideration to be received by Spectra Energy shareholders is valued at $40.33/share of Spectra Energy, based on the Sept. 2 closing price of Enbridge common shares, representing an 11.5% premium to the closing price of Spectra Energy common stock. On completion of the merger, Enbridge shareholders are expected to own about 57% of the combined company and Spectra Energy shareholders about 43%. The combined company will be called Enbridge Inc.
Enbridge has a number of expansion projects currently under way, including a share of the Bakken Pipeline crude project. The company also recently resolved federal charges regarding 2010 leaks from its crude oil pipelines in Illinois and Michigan.
Spectra's current projects include its 2.5-bcfd Infraestructura Marina del Golfo natural gas pipeline joint venture with TransCanada to ship gas into Mexico.
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LUKOIL - The plan is based on the conservative $50 per barrel oil price scenario. Sustainable hydrocarbon production growth is planned in the Upstream business segment along with the growth in the share of high-margin projects in the overall production. In the Downstream business segment, the focus is on the improvement of operating efficiency and selective investment projects targeted at the enhancement of product slate.
BP - BP will acquire on completion a 43% equity share in Lightsource for a total consideration of $200 million, paid over three years. The great majority of this investment will fund Lightsource’s worldwide growth pipeline. The company will be renamed Lightsource BP and BP will have two seats on the board of directors.
REUTERS - Brent crude was up 69 cents, or 1.1 percent, at $64.03 a barrel by 0743 GMT. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015. U.S. West Texas Intermediate crude was up 45 cents, or 0.8 percent, at $57.59 a barrel.
ROSATOM - On December 10, 2017, the construction start ceremony took place at the Akkuyu NPP site under a limited construction licence issued by the Turkish Atomic Energy Agency (TAEK). Director General of the ROSATOM Alexey Likhachev, and First Deputy Minister of Energy and Mineral Resources of the Turkish Republic, Fatih Donmez, took part in the ceremony.