• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 23 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 6 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 49 mins Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 2 days Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
Truckers Are Facing An Existential Crisis As Fuel Prices Soar

Truckers Are Facing An Existential Crisis As Fuel Prices Soar

Owner-operators in the transportation industry…

Gasoline Prices May Have Finally Peaked

Gasoline Prices May Have Finally Peaked

Sky high oil prices pushed…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

ExxonMobil To Strike Biggest Deal Since Oil Bust Started

There’s been a lot of gloom about the oil and gas sector lately. With many firms slowing or completely stopping project development.

But this week news from an unexpected part of the world shows signs of life. With the world’s largest public E&P company moving in a surprisingly aggressive manner on a key M&A deal.

The firm is ExxonMobil. Which Reuters reported over the weekend is close to closing a major strategic project acquisition, in a new spot for the major.

That’s Mozambique. Where sources said Exxon is preparing to buy a 15 percent stake in the massive Area 4 offshore natural gas discovery – from the project’s 50 percent owner, Eni. Related: Oil Prices Beyond WTI And Brent

According to several insiders, Eni will sell a portion of its interest to Exxon, as part of a strategy to farm-down assets and raise money. And sources said the deal will be a big one – likely representing Exxon’s largest acquisition since the collapse of the oil price.

Of course, this makes a lot of sense given that Area 4 is a natural gas play. A commodity where pricing still remains buoyant in many parts of the world outside North America. Related: Was Russia’s Syrian Campaign Aimed At Turkish Energy Security?

The deal is also a testament to how “big” never goes out of style when it comes to projects. With Mozambique’s offshore Rovuma Basin, where Area 4 is located, having already yielded an astounding 85 trillion cubic feet of gas discoveries.

That’s apparently too big of a prize for Exxon to pass up – depressed markets or not. Related: Low Oil Prices Forcing Saudi Arabia To Modernize Economy

And this may not be the end for the major either. With sources also saying that Exxon is eyeing stakes in other Eni assets including Egypt and elsewhere in Africa.

All of which is an encouraging reminder that life goes on in project development, no matter what commodity prices are doing. As developers we just need to stay the course, and keep focused on assets that are big and profitable enough to have an impact.

Here’s to getting back on the horse

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News