ExxonMobil NEWS

As the world’s biggest LNG exporter struggles with a looming gas shortage, imports of liquefied natural gas to Australia now appear "highly realistic", says the U.S. energy giant Exxon Mobil. According to the experts, the industry needs at least $6.9 billion to meet longer term gas demand. Further, this would bring down high prices which are affecting many manufacturers.

Chairman of GAIL has informed that the gas firm has signed an initial agreement with energy giant ExxonMobil. Both the companies will jointly work to explore ways of supplying natural gas to power and transportation sector in India. This venture will help with the expansion of the gas business in the country. Further, GAIL is also competing to buy IL&FS’s 874 MW operational wind energy assets.

GOIL and ExxonMobil have entered into a Joint Operating Agreement. GOIL has informed that it will invest $25 million for the next five years in this agreement for the Deep-water Cape Three Points Area Oil exploration. This will be done through its wholly owned subsidiary GOIL Offshore Company. GOIL's CEO said, "Oil exploration is always a risky business but there’s a good chance of ExxonMobil striking oil in Ghana".

ExxonMobil decided to pull out its staff from Iraq as a “precautionary and temporary” measure. Energy Minister of the Middle East nation has termed this decision as “unacceptable and unwarranted”. He further argued that “This withdrawal may send the wrong message about the situation in Iraq, and that’s something we reject”. He has also sent a letter to Exxon officials asking for clarification and enquiring the workers to return.

If sources were to be believed, ExxonMobil and state-owned GAIL (India) Ltd are in talks to form a joint venture in the country. Exxon’s renewed focus on India is an acknowledgment of the rising energy consumption in India. Chairman and MD at GAIL said, “The discussions are on. We are likely to make an announcement in a fortnight or so,".

Santos has decided to buy 14.3% stakes in the Petroleum Retention License 3 Joint Venture. It will buy the stakes for $187 million. The effort to be a part of the PNG LNG project is in line with Santos' expansion plan. ExxonMobil being the major stakeholder of this venture has agreed to sell its holding in the P'nyang gas field in Papua New Guinea to Santos.

ExxonMobil informed about its investment of almost $100 million for 10 years for the research and development of advanced lower-emissions technologies. Exxon will work with the US Department of Energy’s National Renewable Energy Laboratory and National Energy Technology Laboratory. CEO of Exxon said, "We’re focusing on advancing fundamental science to develop breakthrough solutions that can make a difference on a global basis in emissions reduction".

ExxonMobil released first quarter earnings yesterday, reporting a 50% drop in the profits. Exxon suffered a quarterly loss in the downstream division, attributing bristling stocks of gasoline, leading to weaker fuel margins in the quarter. Exxon pocketed $2.35 billion in the first quarter, in comparison with $4.65 billion it made last year. The firm’s revenues fell short of analysts’ estimates, dropping to $63.63 billion, a dip of 6.7% from 2018.

Energy giant Shell has informed about its ongoing talk with BP to procure its Shearwater oil and gas field stakes in the British North Sea. The cost of acquisition will be $250 million. In Shearwater, Shell holds 28% stake, BP has 27.5% and the remaining 44.5% stakes are held by ExxonMobil. The gas export capacity of Shearwater at the time of peak production is expected to be 70,000 boped.

ExxonMobil has informed that it has signed a sales and purchase agreement for the supply of Liquified Natural Gas with Zhejiang Provincial Energy Group. The agreement has been signed for 20 years during which Zhejiang Energy is expected to receive 1 million metric tons per annum of LNG. Exxon's senior VP of LNG said, "This sales and purchase agreement provides a solid foundation for our strategic partnership with Zhejiang".

Along with its unit and an affiliate Qatar Petroleum, energy major Exxon Mobil has won three exploration blocks offshore Argentina. The company has informed that the three blocks will add approximately 2.6 million net acres to its Argentina's existing holdings. In June, Qatar Petroleum signed an agreement with Exxon to buy 30% stakes in two of Exxon's affiliates in Argentina.

Energy major, Shell is on a hunt for Permian deals in order to improve its position in the basin. Shell’s deepwater boss said, "If none ever come up then that’s a disappointing outcome.” Its rivals Exxon and Chevron, on the other hand, are planning to produce nearly 2 million barrels of oil by the mid-2020s. According to Sawan, Shell's Permian operations will be cash flow positive in the coming years.

Oil super major ExxonMobil has announced that the company's capital expenditure of 2019 and 2020 will be between $63 billion and $65 billion. The company is under constant pressure from investors to control the expenses as the cash flow is being strained due to large-scale projects and some deals. Exxon expects the earnings to increase by more than $4 billion in 2019 and 2020.

Buoyant output forecasts by Exxon Mobil and Chevron and rising US crude stockpiles sent oil prices for a 1% downfall today. While Brent crude dipped 0.8% to $65.31/barrel, US WTI crude futures fell 0.9% to $56.05/barrel. Chevron and Exxon’s projections for the Permian Basin yesterday indicated escalations in shale oil production. Oil prices also took a hit from API report showing a rise of 7.3 million barrels in the inventories.

According to the sources, Royal Dutch Shell wants to increase output and recoverable reserves from its gas field, Ormen Lange in Norway. The energy giant is planning to install subsea compressors in the field in order to boost production. Shell and its partners, Equinor and Exxon are now aiming to choose between two proposals, which are from OneSubsea and TFMC, intended to improve output and recoverable reserves.

US EPC firm, KBR, Inc. has been awarded a reimbursable contract by oil supermajor ExxonMobil for the recently announced crude expansion project. The contract requires KBR to provide detailed engineering, procurement, and construction (EPC) services for the offsites and interconnecting units. Farhan Mujib, KBR President, Hydrocarbons - Delivery Solutions said "KBR is proud to continue our relationship with ExxonMobil through our partnership on this project."

American international corporation, Air Products has secured a contract for Qatar Petroleum and Exxon Mobil’s Golden Pass LNG project. The Pennsylvania-based firm will provide its proprietary AP-C3MRTM natural gas liquefaction technology and equipment, and three MCR® Main Cryogenic Heat Exchangers. Golden Pass LNG, which is a $10 billion project, is integrating liquefaction and export capabilities to the existing framework near Sabine Pass.

Oil supermajor ExxonMobil has awarded a contract extension to Rowan’s Relentless Drillship for further operations. In a company statement, Rowan Companies plc announced that its R-Class ultra-deepwater drillship, Rowan Relentless will continue its operations for another 180 days in the US Gulf of Mexico. The drillship has been under contract by ExxonMobil from September 2018.