YEMEN - The Oxy Battle.In mid- mid- pref. Middle: midbrain. 1999 Oxy, which had a 29% stake in CanOxy, proposed acquiring the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. affiliate's controlling 52% equity in Masila. Can-Oxy resisted and its circular to shareholders on Dec. 17 said the US firm had valued the Masila assets too low as Yemen was one of the Canadian company's key strategic holding. On Dec. 16, CanOxy also announced a 20% increase in its 2000 capital investment programme, to $850m, which called for new drilling at Masila. Then Oxy tried to acquire the whole of CanOxy, in a hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. , with assets including producing fields in Canada, the US and Australia. Later it offered to sell its Canadian stake. In early 2000 CanOxy took the offensive and won the battle by getting Oxy to agree to sell the 29% equity in the Canadian company. Under a deal announced on March 1, 2000, CanOxy pledged to acquire half the US company's equity (14.5%) for C$600m. The Ontario Teachers' Pension Plan The Ontario Teachers' Pension Plan (OTPP), commonly referred to as Teachers', is the organization responsible for administering pensions for public school teachers of Ontario. The OTPP also invests the plan's pension fund. Board pledged to take the other half. The deal was completed in April. Thus Oxy has no remaining equity in CanOxy, which it created three decades ago. As part of the deal, CanOxy agreed to exchange its 15% stake in an Ecuadorean venture operated by Oxy for the US group's 15% share in CXY Chemicals, a partnership operated by the Canadian company. CanOxy retained its 7% share in the giant Syncrude oil sands project in Alberta. In its April report, CanOxy said Masila contributed C$160m ($110m) to a record cash flow of C$355m ($243m) in the first quarter of 2000, and accounted for almost the whole of its operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . Masila's cash flow contribution in the first quarter of 1999 - when crude oil prices were depressed - was C$71m ($49m), nearly two-thirds of total cash flow. The company's operating profit from Masila in the first quarter of 1999 amounted to C$37m ($25m). Masila's production in the first quarter of 2000 accounted for 515 of CanOxy's total, which includes output from fields in Canada, the US and Australia. CCC CCC A very speculative grade assigned to a debt obligation by a rating agency. Such a rating indicates default or considerable doubt that interest will be paid or principal repaid. Also called Caa. , CanOxy's partner in Masila and the main contractor in Yemen, has an important stake in an independent power producing (IPP (Internet Printing Protocol) A protocol for printing and managing print jobs over the Internet using HTTP. Initially conceived by Novell, Xerox and others, the IETF made it a standard in 2000 that includes authentication and encryption. See printing protocol and LPD. ) venture in this country. This is led by Delma Power Co. of the US, which is to build a 400-500 MW gas-fired plant in Yemen on BOOT basis (see DT No. 24). |
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