• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Oil prices going Up? NO!
  • 2 days Could Venezuela become a net oil importer?
  • 6 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 5 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 days Gazprom Exports to EU Hit Record
  • 10 hours Oil prices going down
  • 13 hours Could oil demand collapse rapidly? Yup, sure could.
  • 2 days Oil Buyers Club
  • 2 days Why is permian oil "locked in" when refineries abound?
  • 12 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 4 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 10 hours Saudi Arabia turns to solar
  • 2 days EVs Could Help Coal Demand
  • 2 hours Are Electric Vehicles Really Better For The Environment?
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 12 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
Tesla Closing Down Solar Capacity

Tesla Closing Down Solar Capacity

Tesla is closing down solar…

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