• 3 hours UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 7 hours LNG Glut To Continue Into 2020s, IEA Says
  • 9 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 12 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 14 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 15 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 4 days New Video Game Targets Oil Infrastructure
  • 4 days Shell Restarts Bonny Light Exports
  • 4 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 5 days Rosneft Signs $400M Deal With Kurdistan
  • 5 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 6 days Conflicting News Spurs Doubt On Aramco IPO
  • 6 days Exxon Starts Production At New Refinery In Texas
  • 6 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 7 days VW Fails To Secure Critical Commodity For EVs
  • 7 days Enbridge Pipeline Expansion Finally Approved
  • 7 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 7 days OPEC Oil Deal Compliance Falls To 86%
Oil Fundamentals Overturn Geopolitical Risk

Oil Fundamentals Overturn Geopolitical Risk

Geopolitical risk from Iraq and…

Exxon And BHP Consider Major Divestment

Oil Rig

Energy giants Exxon Mobil Corporation and BHP Hilton are mulling plans to sell off depleting assets in Australia. Under consideration for sale are 13 fields, licenses, and the infrastructure in the Gippsland Basin Joint Venture.

BHP said that the area has been in production in oil and gas since the 1960s. The companies each own 50 percent of venture. BHP’s Bass Strait unit could be worth approximately $1 billion, according to a note from Citigroup to its clients in May. In that same note, Clarke Williams stated that the liquid production for the unit has been down.

The venture has produced some 4 billion barrels of crude and 8 trillion cubic feet of natural gas since operations in the area began. Presently, the Bass Strait produces mostly gas, and accounts for approximately 40 percent of the gas in the eastern part of the country. Oil production has been in decline since the 1980s.

A spokesperson for the company stated: "ExxonMobil continually reviews its global assets for their contribution towards meeting the company's operating needs and financial objectives, as well as their potential value to others.”

The spokesperson went on to say, “We are currently exploring opportunities to market some of the offshore Gippsland Basin fields, licenses and associated offshore infrastructure to third parties" adding "We are seeking to identify third parties with proven experience and strength to operate and capture the remaining potential in these licenses."

Related: Conoco-Philips Pipeline Leak Threatens Wildlife Area In Alberta

Bloomberg Intelligence senior industry analyst Phillip Chladek wrote on 13 June that asset buyers are favoring the purchase of individual operations, as opposed to companies. Chladek said that approach allows those buyers to “better target businesses and geographies that align with their strategy.”

Bloomberg’s data indicates that in the first half of this year, approximately 42 percent of the deals that were made were assets sales.

By Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News