• 5 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 25 mins Can the World Survive without Saudi Oil?
  • 16 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 2 hours Sears files Chapter 11
  • 2 hours Natural disasters and US deficit
  • 2 days COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 15 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 2 days $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 13 hours German Voters Set to Punish Merkel’s Conservative Bloc
  • 1 day How Long Until We Have Working Nuclear Fusion Reactor?
  • 2 days China Thirsty for Canadian Crude
  • 2 days China Tariff Threatens U.S. LNG Boom
  • 8 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 14 hours Saudi A Threatens to Block UN Climate Report
  • 13 hours Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
Why Is This Little-Known Element Up Over 300%

Why Is This Little-Known Element Up Over 300%

Element ‘’V’’, better known as…

Are Oil Majors Returning To Libya?

Are Oil Majors Returning To Libya?

Libya’s NOC has managed to…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Exxon, Rosneft Give Up Gulf Of Mexico Oil Plans Over ‘Lack Of Prospects’

Offshore Drilling

ExxonMobil (NYSE:XOM) and Russia’s Rosneft have decided to return their joint license for developing oil blocks in the Gulf of Mexico after getting disappointing exploration results on top of low crude oil prices, Russia’s Interfax agency reported on Friday, quoting Rosneft’s press office.

Back in 2013, a Rosneft subsidiary acquired a 30-percent interest in 20 deepwater exploration blocks in the Gulf of Mexico held by ExxonMobil. The U.S. major kept the other 70 percent interest in the blocks and remained operator.

Rosneft and ExxonMobil have been working together under a strategic cooperation agreement from 2011, under which the companies and their subsidiaries undertake joint exploration and development of oil and gas resources in Russia and other countries, including the U.S.

Now, the partners in the project acquired 2Dand 3D seismic data and assessed the drilling prospects. In view of the decline in oil prices and disappointing exploration results, as well as potential sanction-related limits, the partners will hand over the licenses at their expiry at the end of 2016, Interfax quoted Rosneft as saying.

Returning licenses is a standard practice for the U.S. Gulf of Mexico operators when the technical and business evaluation of the projects do not match expectations, Rosneft said, adding that the returning of licenses would not lead to penalties for the companies.

Related: U.S. Shale Patch Welcomes OPEC Deal – But Needs $60 Oil

Investments were made according to the interests the companies have; Rosneft’s share is 30 percent. The Russian company has not specified how much its share of investment was, but said the ‘sum is not significant’.

Meanwhile, Rosneft continues to analyze investment opportunities in the U.S., Cuban and Mexican sectors of the Gulf of Mexico, Interfax cited Rosneft as saying.

As for Exxon’s Russian adventures, the U.S. supermajor has lost more than US$1 billion from the U.S. economic sanctions against Russia. The sanctions have forced Exxon to shelve its Arctic plans, and it started to lose money from revenues generated by its ongoing Russian projects, such as the flagship project Sakhalin-1 and a number of joint ventures with Rosneft. It also lost future revenues. The Arctic venture alone was valued at US$500 billion in total investments.

By Tsvetana Paraskova 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