Release Date: April 2010
Next Release Date: May 2011  

• Findings & Background
• Transactions Summary
• Acquisitions
• Divestitures

Download Full Report(PDF format)

Acquisitions

The largest foreign direct investment acquisition of U.S. energy assets in 2007 was National Grid’s (England & Wales) purchase of Keyspan, which was formed in May 1998 as a result of the merger of KeySpan Energy, the parent company of Brooklyn Union Gas, and certain businesses of Long Island Lighting. At the time of the merger, Keyspan was the fifth-largest distributor of natural gas in the United States, with customers in New York, Massachusetts, and New Hampshire. It was also the largest electricity generator in New York, with customers on Long Island and in New York City and the operator of the electric power transmission and distribution system on Long Island under contract. National Grid’s principal operations are in the United Kingdom and the United States. It has been expanding in the United States since 2000 by purchasing electric and natural gas utilities in the Northeast, including Niagara Mohawk, a large New York utility; Keyspan was its fifth U.S. acquisition.

The next three largest acquisitions in 2007 involved oil and natural gas production, an oil and natural gas field services company, and a natural gas pipeline. Eni’s (Italy) purchase of Dominion Resources’ remaining oil and natural gas properties in the Gulf of Mexico completed a major expansion for the company in the United States. Eni’s acquisition strategy has been to acquire reserves and production in areas where it can play an important role as an operator of deepwater developments. It is now the 15th-largest producer of crude oil in the United States. Dominion was in the process of selling most of its oil and natural gas properties as part of a previously announced plan to refocus the company on its power generation and energy distribution, transmission, and storage operations.

Compagnie Générale de Géophysique’s (CGG, France) purchase of Veritas combined two seismic companies to create the world’s largest surveyor of oil and natural gas fields. The combined company had 7,000 employees worldwide providing seismic data acquisition, processing, and reservoir services and, manufacturing geophysical equipment. CGG financed the deal partially with cash and partially by issuing new stock.

TransCanada’s acquisition of American Natural Resources extended its natural gas pipeline network to more than 36,500 miles and its natural gas storage capacity to 360 billion cubic feet. TransCanada’s acquisitions have made it a major operator of natural gas pipelines and storage facilities in North America. TransCanada also acquired 46 percent of the Great Lakes natural gas pipeline from El Paso in 2007. El Paso sold various assets in 2007 to increase its financial flexibility and improves its credit rating.

Table 2. Completed Acquisitions of U.S. Energy Assets by Foreign Direct Investment, 2007* Acquiring Foreign Parent Company (Country) U.S. Subsidiary Company or Asset Being Acquired Business of Acquired Company or Asset Divesting U.S. Parent Company Estimated Asset Value (million $) National Grid (England & Wales) -- Keyspan electric power Keyspan 11,800   ENI (Italy) -- oil & gas assets oil & gas production Dominion Resources 4,757   Compagnie Générale de Géophysique (France) -- Veritas DGC oil & gas field services Veritas DGC 3,500   TransCanada (Canada) -- American Natural Resources natural gas pipline El Paso 3,400a Macquarie (Australia) -- Duquesne Light electric power Duquesne Light 3,150   EnCana (Canada) -- WRB Refining refining & marketing ConocoPhillips 2,800b Energias de Portugal (Portugal) -- Horizon Wind Energy electric power Goldman Sachs 2,740   EnCana (Canada) -- natural gas assets (remaining 50 percent Amoruso Field) oil & gas production Leor Energy 2,550   Husky Energy (Canada) -- Lima Refining refining & marketing Valero Energy 1,900   Provident Energy Trust (Canada) Breitburn Energy oil & gas assets oil & gas production Quicksilver Resources 1,474c k1 Ventures (Singapore) McMoRan Exploration oil & gas assets oil & gas production Newfield Exploration 1,322d Transcanada (Canada) -- Great Lakes Pipeline (46 percent) natural gas pipeline El Paso 962   StatoilHydro (Norway) -- oil & gas assets oil & gas production Anadarko Petroleum 901   EnerVest (Canada) EV Energy oil & gas assets oil & gas production Anadarko Petroleum 728   Mitsubishi Oil (Japan) -- oil & gas assets oil & gas production Anadarko Petroleum 600   Nippon Oil (Japan) -- oil & gas assets oil & gas production Anadarko Petroleum 600   BHP Billiton (Australia, & England & Wales) BHP Billiton Petroleum (Americas) oil & gas assets (44 percent of Genghis Khan) oil & gas production Anadarko Petroleum 585   Royal Dutch Shell (England & Wales) Shell Oil oil & gas assets oil & gas production U.S. Government 555   Energy XXI (Bermuda) -- oil & gas assets oil & gas production Pogo Producing 410   Repsol YPF (Spain) Repsol Energy North America oil & gas assets (28 percent of Genghis Khan) oil & gas production Anadarko Petroleum 372   Électricité de France (France) -- Unistar Nuclear Energy electric power Constellation Energy 350e ITERA Oil & Gas (Russia) Dune Energy Goldking Energy oil & gas production -- 329   Trican Well Service (Canada) -- Liberty Pressure Pumpinig (93 percent) oil & gas field services Liberty Pressure Pumping 299   Iberdrola (Spain) -- power plant electric power Klamath Falls, OR 290   * Includes only transactions valued at $250 million or greater a Companies being acquired includes ANR Storage and 3.6 percent of Great Lakes Gas Transmission. b EnCana and ConocoPhillips formed a 50/50 U.S. partnership, WRB Refining, to which ConocoPhillips contributed two refineries. The value of the refineries was not separately disclosed. John S. Herold values 50 percent of them at $2.8 billion. c Includes some midstream assets. d k1 Ventures owned greater than 10 percent in McMoRan Exploration on December 31, 2006 and less than 10 percent on December 31, 2007. McMoRan purchased the above assets on August 6, 2007; on that date the ownership share of K1 Ventures could not be determined. e Formation of a joint venture. NA = not available.