Petrobras decision might hurt drillers

Petróleo Brasileiro S.A aka Petrobras is planning to release details from a programme dubbed Procop that is to address its cost base in December. The goal is to optimize operating costs and media in the know has thrown numbers in between 5 and 15 billion reais (2-6 billion Euros or 14-42 billion NOK). This will have an effect on contractors of the company.

Newspaper Dagens Næringsliv (DN) interviewed industry experts on the matter. They opinionated that there is likely to consequences on its drilling activities, which in turn could pressure mid/deepwater segment where rates can be under pressure from an industry oversupply. DN listed firms such as Fred. Olsen Energy (OSE: FOE), Songa Offshore (OSE: SONG), Seadrill (OSE: SDRL) Awilco Drilling (OSE: AWDR) as those affected. A. P. Møller-Mærsk (OMX: MAERSK A, MAERSK B) could be affected to a lesser degree. Additionally offshore vessel makers, sellers and renters are likely to think of what is coming as well.

Maersk invests in Ningbo

A.P. M øller Maersk Group’s (OMX: MAERSK A, MAERSK B) port operating arm APM Terminals will be involved in the Ningbo Port expansion in the seafaring city located in Zhejiang province, China. Maersk will cover one quarter of the project with a 4.29 billion RMB (3.9 billion DKK or 530 million Euro) investment. The agreement was struck with Ningbo Port Co and the companies will jointly operate three berths comprising one kilometre quay in the Meishan container terminal. Ningbo port is currently the third largest in China after Shanghai and Tianjin and among the biggest in the world. The new facility should be completed by the end of 2014.

Statoil and Sinochem acquire Peregrino FPSO vessel from Maersk

Statoil (OSE: STL, NYSE: STO) and China's Sinochem have agreed to purchase Peregrino FPSO vessel from A.P Moller Maersk (OMX: MAERSK A, MAERSK B) for an undisclosed price. Peregrino vessel has a storage capacity of 1.6 million barrels of oil and it has been operating offshore Brazil in the Peregrino (formerly Chinook) field in the Campos Basin since last year following a 4-year project to convert the then very large crude carrier (VLCC) vessel to a complex offshore oil production installation. That investment cost in excess of 1 billion USD.

The two partners (Statoil has 60% stake in the field estimated to contain 2.3 billion boe) had an option to buy the vessel a few years in and with Maersk focusing on core operations, the time was right for such a move. The operation of the vessel will be taken over by FPSO contract BW Offshore (OSE: BWO) following a transition period. There are around 200 employees on the vessel and it has had a good safety record. Maersk says that the gain from the sale will not have a material impact on group results. The company still maintains two FPSOs and other units in its FPSO business.

Maersk Line CFO to depart?

Organizational changes at A. P. Møller-Mærsk’s (OMX: MAERSK A, MAERSK B) Maersk Line will be reportedly communicated this morning. Those may reportedly include a surprising departure of CFO Peter Ronnest Andersen after 20 years with the company. According to Danish and international shipping newspapers, he will be replaced by former ISS Global A/S director and CFO Jakob Stausholm, who joined Maersk a few months ago. Mr. Stausholm also has a lengthy experience from Shell. Maersk representatives only admitted that a leadership change is on the agenda. In addition to this, some 400 employees are set to lose their jobs, with around 250 of the cuts taking place from Copenhagen.

Maersk’s Gulf of Mexico drilling contract at record day rates

Maersk Drilling, the oil exploration unit of Danish conglomerate A.P. Moller-Maersk A/S (OMX: MAERSK A, MAERSK B) told Reuters at the start of the week, that it has received a deep-water drilling contract with a value of 610 million USD, showing some recovery of the activity in the region. The customer was not named beyond saying it is for a major oil company.

The contract is for the first one of the four ultra deepwater newbuilds currently in construction at Samsung Heavy Industries in Korea with an expected delivery by the end of 2013 and has a duration of three years. Its basic daily rate of 548 000 USD (with the possibility to go up to 585-590 thousand with bonuses) is the highest in the history of the company for its ultra deepwater units.

Maersk down heavily despite slight outlook hike

World's largest shipping company A.P. Moeller-Maersk A/S (OMX: MAERSK A, MAERSK B) reported profit for the period of just under 1.2 billion US Dollars (EPS of 248 USD or around 1448 DKK) on Wednesday. This is almost on par with last year but operational result excluding one-off items is around zero. The company admits that the underlying result isn't satisfactory and the highlight numbers are skewed by an extraordinary item related to the Algerian tax claims settlement. Consolidated first quarter revenue of 14.3 billion is down slightly year-on-year. EBITDA of about 2.5 billion USD is 38% lower than last year. Cash flow was 1.2 billion on the positive side, down from 2.3 billion, on higher investments. This does not include the tax settlement, since that cash will be coming in later in the year.

Market share of Maersk Line has now stabilized around 16% after strong growth last year and the company does not aim to aggressively grow it further. Last year it had a very strong first quarter. The net operating loss of 600 million is about the same as on Q4 2011. Bunker price was up 31% and freight rates were down by 9%, slashing margins compared to last year. Excluding higher bunker fuel prices, unit costs were down by 1% since ships were running at a lower speed, then in turn lessening fuel consumption.

The company expects gradual improvement as freight rates have now been improving. There is also an expectation for a more stable bunker fuel price picture going forward. The Daily Maersk has been well received and has changed the market dynamic on Asia-Europe route. Maersk Line tends to be able to price a little bit above an average competitor. The company has seen less exports from Asia to Europe but higher exports from Europe to Asia. CEO Nils S. Andersen said in the conference call that the company thinks the industry is ready to “review capacity” in unison if rates do not develop “as expected”. For the year Maersk Line expects” negative to neutral “result (previously negative).

In addition to the 902 million USD tax solution gain Maersk Oil’s result was also helped by higher oil prices. There was a 25% decline in production to 254 000 boepd but the average oil price of 119 USD mitigated some of the decline in profits. Higher exploration activity is ongoing. Revenue was around 2.54 billion (vs. 3.07), EBITDA at 1.85 billion (2.55) and net profit of 1.3 billion. APM Terminals' profit improved. Revenues were down 1.2 billion (1.06) EBITDA margin and bottom line were up. Reduced ownership share in Xiamen terminal in China gave a small one-off gain. Taken into account the higher oil price and the one-off gain Maersk Oil expects 2012 result to be on par with last year (previously ‘clearly weaker).

Maersk Drilling has a near 100% contract coverage and grew quarterly revenues to 488 million. Profit for the period climbed to 125 million, which is determined to be a good result. Ultra-harsh and ultra-deepwater and mid-water rigs are fully covered with new contracts signed going forward too. Maersk Supply Service also performed rather well with revenue of 215 million and a profit of 42 million. It has two thirds of capacity covered for 2012 highlighted by four long-term contracts for large AHTS vessels in Brazil and Africa. Maersk LNG divestment is completed and the company feels that was done at an opportune time. CEO Andersen hinted of possible further divestments but did not go into details. There wasn’t a lot of colour on Dansk Supermarked’s results that were down to 267 million DKK.

The company also raises annual group-wide outlook slightly. The company expects results slightly below 2011 level as opposed to lower result with CAPEX around the same level as last year. The outlook is very sensitive to market situation. The market demand outlook is the same. The investors had already been expecting some sort of a guidance raise, so coupled with the disappointing quarter this wasn’t enough to avoid a sell-off. The B-share closed at 37 840 DKK (~6480 USD).

Gas explosion reportedly claims 7 lives onboard a vessel offshore Qatar

News portal Maritime Danmark is reporting that a large gas explosion yesterday at a large oil & gas field offshore Qatar has claimed the lives of seven people (4 from Indonesia, 1 from India and 1 from Britain) onboard Al Deebel. The vessel belongs to Svitzer, which is owned by A.P. Moeller-Maersk A/S (OMX: MAERSK A, MAERSK B). One of the deceased was working for a local company. His nationality hasn't been reported. Four people have been injured with one person escaping injury.

Bloomberg offers an explanation to Maersk gains

A.P. Moeller-Maersk A/S (OMX: MAERSK A, MAERSK B) is up for a fifth straight day in Copenhagen Stock Exchange. Bloomberg explained in an article, that this is due to bets that the industry will succeed in the next round of freight rate increases. Its Asian peers were performing strongly this morning. The world’s largest container line also received some analyst target price hikes late last week. B-share is currently trading at 43 840 DKK (about 7800 USD).

Maersk Mc-Kinney Møller has died

Danish shipping magnate Mærsk Mc-Kinney Møller has passed away today at the age of 98, A.P. Moller – Maersk Group (OMX: MAERSK A, OMX: MAERSK B) said in a release. He ran the family business for decades and stayed as CEO until 1993 and Chairman until 2003 when he was 90 years of age. His last public appearance was just days ago at the Annual General Meeting.

In addition to his own direct shareholding, he still remained as the chairman at A.P. Møller and Chastine Mc-Kinney Møller Foundation, the A.P. Møller Relief Foundation, and the Maersk Employee Foundation, which combined have a clear majority of shares and votes in A.P. Moller – Maersk Group. He is also remembered as the first non-American member at the Board Of Directors of IBM.

Maersk up as rates recover

A.P. Møller - Mærsk A/S (OMX: MAERSK A, OMX: MAERSK B) share continued its strong run as of late on Monday as shipping companies have managed to press through marked price increases on the Asia-Europe route within the last few weeks. Maersk was very cautious on its outlook for 2012 concerning Container Shipping segment in its Q4 report so it does not take that much to be able to surprise to the upside.

For quite some time now container shipping companies have only just managed to cover bunker costs as overcapacity has given individual companies weak negotiating position. Maersk’s peers have communicated of new alliances as of late and as many of the newbuilds ordered towards the end of last cyclical peak have been delivered, companies are seeking some clarity and restoration of profitability.

Lundin Petroleum AB jumps on appraisal well data

Worries that Lundin Petroleum AB (OMX: LUPE) might be about to lower the resource estimates of a portion of Johan Sverdrup any time subsided today after the firm announced data from appraisal well 16/2-11 in PL501 license. The well encountered 54 metre gross oil column of good reservoir properties in Upper and Middle Jurassic sandstone at predicted depth.

Production test in Middle Jurassic resulted in flow rates of over 2700 barrels of oil per day. The work will now shift to investigate lateral thickness and property variations as well as the establishments of an oil water contact to estimate possibility of a deeper oil-water contact in this area.

The company has now decided to delay the release of updated resources estimates most likely until the completion of 2012 appraisal program. Lundin Petroleum gained 7% for the day. Partners Statoil and Maersk were largely unaffected by the news in today’s trading

Maersk set to net nearly 1 billion $ in a settlement of tax claims in Algeria

A.P. Møller - Mærsk A/S (OMX: MAERSK A, OMX: MAERSK B) subsidiary Mærsk Olie, Algeriet A/S and national oil company, Sonatrach S.P.A. have reached a settlement over tax claims. Maersk Olie has together with Anadarko and Eni been partnering Sonatrach in several blocks in Algeria under a production sharing contract.

Several years ago a new tax law called "Taxe sur les profits exceptionnels" (TPE) became effective. This imposed new revenue tax. Anadarko and Maersk argued that collection of the TPE by Sonatrach from its share in oil production due to them under the agreement was a breach of contract. The parties have now settled those claims under mutual concessions.

The settlement will land Maersk additional crude oil volumes worth approximately 920 million U.S. dollars over the next 12 month period. The effect on the terms of the agreement between the companies will also moderately increase Maersk’s share of the oil production for the remainder of the agreement duration. The settlement is subject to approval of the Algerian authorities and is expected witin 4 months. Maersk has climbed 2% in today’s trading.

Liner overcapacity, murky outlook press Maersk

A.P. Møller - Mærsk Group (OMX: MAERSK A, OMX: MAERSK B) released its Q4 2011 and annual report this morning. The Danish business conglomerate’s yearly revenue was 322.5 billion Danish kroner (~ 45 billion Euros or 60 billion USD), which was 2% more than in 2010. EBITDA and EBIT were both down round about 10% to 78.5 and 50 billion. Net profit was just 18 million. Q4 numbers in USD were as follows: revenue was just below 15 billion, EBITDA 3.07 billion, EBIT 1.68 billion and net profit 273 million

Maersk Line posted an annual loss of 0.6 billion USD primarily resulting from low rates on the Asia-Europe route. It did however manage to gain market share and has recently told of measures to address the situation. Overall freight rates were 8% lower where as bunker prices (ship fuel) were up 35%. The expected result of 2012 is negative on excess capacity that is expected to increase a further 4-6% in 2012.

Maersk Oil made a profit of 2.1 billion USD in 2011 with a 330 000 boepd produced at an average price of 111 USD per barrel. Maersk bases its Maersk Oil result prognosis on an oil price of 105 USD per barrel. The result is expected to weaken clearly in 2012 based on a 20% decline in the share of oil and gas production to around 265,000 boepd.

APM Terminals, Maersk Drilling and Maersk Supply Service profits were up to 649, 495 and 210 million USD respectively. Maersk Tankers had a difficult year with a 151 million loss. Maersk Retail ( such as Dansk Supermarked Group) had a profit of 5.3 billion DKK (nearly 1 billion USD) with most of it coming from a 3.8 billion gain from the divestment of Netto Foodstores Limited, UK.

Svitzer’s profits grew slightly to 133 million SD where as Maersk FPSOs and Maersk LNG’s results were near break-even. Maersk LNG 1.4 billion USD divestment is expected to be completed in Q1 2012. Damco continues to grow its offering within the airfreight market and have a profit of 65 million USD.

The group considers the overall result acceptable considering the shipping rates decline during the year. The outlook for 2012 is once again challenging with significant uncertainty. The result should be positive but lower than in 2011, while cash flow generation should be in line with 2011. Sensitivities tables are available within the annual releases. The stock has lost 3.5% to trade below 44 000 DKK.

Maersk line cuts Europe-Asia capacity in cooperation with CMA-CGM

Maersk Line line has decided to remove 9% of its vessel capacity from Asia-Europe route. This will not affect current market share since the vessel utilization rates are low. Maersk Line says that container freight rates are at an unsustainably low level but the company plans to defend market share position at any costs. This capacity cut is supposed to help restore profitability.

The removal will be facilitated by a vessel sharing agreement with CMA-CGM. Back in December markets viewed a parnership of CMA-CGM and Mediterranean Shipping Co. as a move against Maersk. NS alluded to the possibility of the large players targeting smaller rivals instead. With this cooperation, Maersk can also cut costs of serving West Mediterranean markets. A.P. Moller – Maersk Group's (OMX: MAERSK A, OMX: MAERSK B) full-year results are due on 27 February 2012. The share is up 2.5% at exactly 47 000 DKK.

Luno and Draupne field development plans unfolding

Luno field operator and 50% owner Lundin Norway AS, a subsidiary of Lundin Petroleum AB (STO:LUPE)), announced that field development plan for the Luno field is starting to be put in place. The oil field is located in production license PL 388 in the North Sea offshore Norway, The license also covers Tellus discovery. Other partners are Wintershall Norge (a subsidiary of world’s leading chemical company BASF SE from Germany) with 30% stake and RWE Dea Norge AS (a subsidiary of RWE Dea AG which in turn is a subsidiary of German electric power and natural gas public utility RWE AG) with 20% portion.

Light oil was discovered in the field several years ago and subsequent appraisal wells have extended recoverable reserves. There is a detailed description of the early work done on the field at offshore-technology.com. Lundin expects 90,000 barrels of oil per day (bopd) peak production. Luno contains 186 million barrels of proven and probable oil equivalents (MMboe). The field is expected to start producing in late 2015.

Lundin is in negotiations with Det norske Oljeselskap ASA (OSE: DETNOR), the operator at Draupne field on license PL001B, which is located 8 kilometres northwest of Luno, for a unitized development plan. A coordinated development solution for the two fields was requested by The Ministry of Petroleum and Energy. The Ministry’s rationale was that both society and licensees can expect substantial savings from such a solution and made the companies aware that development and operation plans would not be accepted without such an agreement in place.

Partly processed oil and gas would be transported to Luno platform from Draupne field for stabilization and export. Lundin expects that an agreement will be conducted shortly. Draupne field is expected to produce 143 million barrels of oil and gas. Luno platform design capacity will accommodate in excess of 120,000 bopd when Draupne production is combined with Luno’s. The licensees at Draupne are DETNOR (35%), Statoil (OSE:STL, 50%) and Bayerngas Norge AS (owned in decreasing order by Bayerngas GmbH, Stadtwerke München, Swissgas and TIGAS-Erdgas, 15%).

Engineering, procurement and construction (EPC) company Kvaerner (OSE: KVAER) was awarded Luno field jacket EPC contract worth approximately 1.1 billion NOK by Lundin. Kværner will deliver a steel jacket weighing some 14 500 tonnes executed by Kvaerner's yard in Verdal. The engineering starts immediately and fabrication will start in Q4 2012 with expected delivery in the spring of 2014. .

Historic Kværner name returned to prominence after a few year hiatus after a spin-off from Aker Solutions. Kværner had been around for nearly 150 years before it started a period of rapid expansion acquiring several companies in different fields. This caught up to the company when the economy turned sour upon the collapse of the dot-com bubble in the beginning of the previous decade, and it was forced to merge with rival Aker ASA or face bankruptcy.

Total capital costs for Luno field are expected to be around 4 billion USD (nearly 24 billion NOK). This includes the processing platform on a jacket, the wells and export pipelines tied to existing infrastructure (to the Grane oil pipeline). Rowan Companies Inc has a contract to provide a Rowan Stavanger jack-up rig to the area to drill the Luno development wells at an average day rate of about 340 000 USD (2 million NOK+) in between June 2013 and November 2016 to drill 15 wells. Contracts for marine installation and topside are expected to be awarded soon.

Draupne operator DETNOR has contracts in place for front-end engineering and design (FEED) study of Draupne development with Aker Solutions (OSE: AKSO) and a 400 million USD 3-year drilling contract (extendable for 7) with Maersk Drilling (a subsidiary of A.P. Moller - Maersk Group (OMX: MAERSK A, OMX: MAERSK B) for newbuild jack-up rig, XL Enhanced 2, which is designed for use in ultra harsh environment and is currently under construction in Singapore scheduled to be delivered in 2014.

Lundin Petroleum down after appraisal well data adds to uncertainty on Avaldsnes resource

Lundin Petroleum (OMX: LUPE) has backed down nearly 15% this morning after the company notified the stock exchange on data acquired from Avaldsnes appraisal well drilled to delineate the southern flank of the Avaldsnes discovery. Lundin Petroleum’s far larger partners Statoil (40%) and Maersk (20%) are also under some pressure in early trading.

The top reservoir was found deeper than expected and was currently evaluated as unproducible. More research is required to determine if this is a local phenomenon. Revised resource estimate will be released upon the completion of the next appraisal well in around 1.5 months. The company currently estimates that the impact of this well on the southern extent of the discovery is a reduction of current resource estimates.

Oceans go mobile

Maersk Line, the world’s largest shipping company and a part of th A.P. Moller - Maersk Group (OMX: MAERSK A, OMX: MAERSK B) has appointed Ericsson (OMX: ERIC B, NASDAQ: ERIC) to address mobile communication on the oceans. Ericsson is to introduce end-to-end systems integration and deployment of mobile and satellite communication to Maersk Line’s entire fleet of over 500 container vessels.

The majority of the vessels will be outfitted with Ericsson antennas and GSM base stations within the next two years. The technique is an integrated maritime mobile and very-small-aperture terminal (VSAT) satellite solution. Ericsson will provide global support services, including network monitoring and onboard maintenance services on numerous ports for at least seven years from the start.

Until now ocean fleet has had to rely on satellite connection for key functions. Mobile connection should open up a wide range of potential improvements in fleet management, delivery times communication, problem solving and so forth. Maersk Line believes this will contribute to a more efficient running of their fleet.

News-heavy days at Maersk offices

Maersk Line Limited, a subsidiary of A.P. Møller - Mærsk (OMX: MAERSK A, OMX: MAERSK B) has agreed to pay 31.9 million USD as a settlement in compensation to the government of The United States for overcharging over cargo transportation to Iraq and Afghanistan in various ways. The now settled suit was filed by a former industry insider under the whistleblower provision of the US False Claims Act.

A legal adviser of the government implied in the justice department press release, that Maersk is paying the price of not being a fair and honest contractor. Maersk’s legal adviser admitted to a mistake in a comment to news service Ritzau but denied that the company had knowingly overcharged. This comes at a time when the US military is facing the prospect of heavy cuts and thus cash consciousness should be expected going forward. Maersk spokesman said the company does not expect the relationship with the U.S. military to be materially affected from this admission.

Dansk Supermarked A/S (The Danish Supermarket Ltd), an owner of several chains of stores, which Maersk owns together with F. Salling Gruppen is getting a new CEO in Per Bank, Commercial Director and Executive Board Member of Tesco UK. Mr. Bank’s most recent position in Denmark was as a managing director of the largest retailer in Denmark, Coop Danmark and head of Coop Norden. The current Dansk Supermarked CEO Erling Jensen is retiring at the end of March and Per Bank will take over from April 1st.

Lately there has also been speculation that Maersk might be putting its holding in Danske Bank (OMX: DANSKE) up for sale. The A.P. Møller Mærsk Group and the A.P. Møller and Chastine Mc-Kinney Møller Foundation has a 22.76% ownership share in Danske. Company spokesman told Dow Jones Newswires that the company has no plans to sell the stake but instead considers the holding a long-term investment.

Shipping newspaper Lloyd’s List wrote that boxship charter rates for have fallen even further and the price of renting container ships may soon only just cover operating costs. Maersk Line's shocking rate of just 5300 $ a day for AS Jutlandia for a recent 1-3 month lease was given as an example of just that.

On Wednesday Maersk Oil said it struck oil with its first pre-salt well in Angola. Maersk Oil and its partners declared a deepwater exploration well Azul-1 in Kwanza Basin a discovery well. Initial data indicates potential flow capacity of greater than 3,000 barrels of good quality oil per day. The operator Maersk Oil has a 50% share in the block and partners with Svenska Petroleum Exploration (30%) and Sonangol (20%). Sonangol is the block Concessionaire (i.e. license holder).

Mærsk CEO has emergency heart surgery

A.P. Møller -Mærsk A/S (OMX: MAERSK A, OMX: MAERSK B) announced moments ago, that CEO Nils S. Andersen has undergone open heart surgery to replace a leaky cardiac valve. The operation went well and the company expects the CEO to be back in one month’s time. Meanwhile Chairman Michael Pram Rasmussen will take a more active role in day-to-day decisions.

Other week 49 2011 news from Nordic companies

Here are some additional newsworthy events in brief:

Financial Times is reporting that Nokia is coaxing interest of potential buyers to divest its luxury phone brand Vertu. Some private equity firms seem interested and the sales price should be several hundred million Euros.

Eu/Norway fish talks for 2012 North Sea fisheries resulted in increases for herring, haddock and whiting quotas (with North Sea herring quota more than doubled to 405,000 tons), with cod and saithe quotas down a notch. Further talks will be made for mackerel total allowed catch as a solution in the mackerel war with Faroe Islands and Iceland is sought after.

Christmas demand has raised Norwegian salmon spot prices some 20% within a few weeks. While still far away from 45 NOK per kilo levels of this summer, this breaks a lengthy trend straight down and farmed salmon companies have responded positively.

Vestas turbine in Ayrshire wind farm, Scotland caught fire in hurricane Bawbag.

Maersk Drilling received LOA from Det Norske Oljeselskab (OSE: DETNOR) to Draupne license in the North Sea for newbuild jack-up rig, XL Enhanced 2, which is designed for use in ultra harsh environment and is currently under construction in Singapore scheduled to be delivered in 2014. The total value of the three year contract is over 400 million USD.

Outotec has acquires furnace refractory demolition business Kiln Services Australia. The company envisions doubling Kiln’s annual sales over the next three years.

Højgaard Industri, a part of Højgaard Holding (CPH: HOEJ B) won a new management contract‏ with Banedanmark for the production of concrete sleepers at the Fredericia facility. The previous contract with between the companies was coming to a close and Højgaard Industri won out in the contract award procedure.

There have been wild swings in Frontline (OSE: FRO) stock after its creative restructuring plan was made public this week.

Kone Corporation will supply elevators and escalators to Lishui Wandi Plaza. The large eight building complex in the city of Lishui in Zhejiang province should be completed in 2013.

Clas Ohlson (STO: CLAS B) missed expectations for 1.5.2011-31.10.2011 period.

TTS Group ASA won two contracts from Hyundai Mipo Dockyard co. Ltd worth around 117,5 million NOK in total.

Purchase-to-pay and Financial Management solutions software provider. Basware Corporation lowers 2011 estimates.

Cevian keeps buying into Tieto ((OMXH: TIE1V, OMXS: TIEN).

Neste Oil is selling its 50% portion of iso-octane, a gasoline component produced from Butane, plant in Edmonton, Canada to Keyera Corp for 99 million USD.