ExxonMobil Corporation’s (XOM) subsidiary, Esso PNG Robin Limited (Esso) has decided to opt out of a $40 million deal relating to the purchase of Australia's oil and gas exploration firm New Guinea Energy Limited’s (“NGE”) 50% stake in Petroleum Prospecting License (PPL) 269.
PPL 269 is located in Western Province, Papua New Guinea (PNG). Esso is pulling out following its inability to reach an accord on several confidential commercial matters with the other joint venturers in PPL 269. The other JV partners are Talisman Niugini and Diamond Gas Foreland – subsidiary of Mitsubishi Corp..
In keeping with its strategy of monetizing gas assets for oil exploration in PNG, NGE is contemplating re-employment of parties that had earlier expressed interest to buy a stake in PPL 269.
On July 26, an agreement was signed between NGE's subsidiary Kirkland Limited and Esso, in which the former agreed to sell 50% of its participating interest in PPL 269.
ExxonMobil is fairly active in its investment program. The company boasts diversified operations across the world with several new projects expected to come online through 2013. While Exxon functions in all corners of the globe, the main areas of focus for new volumes over the coming years include the U.S., Canada, Kazakhstan, West Africa, Australia, Russia, Angola and Iraq.
ExxonMobil is the world’s largest publicly traded oil company, engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses.
ExxonMobil carries a Zacks Rank #3 (Hold). However, Zacks Ranked #1 (Strong Buy) sector stocks – Range Resources Corp. (RRC), China Petroleum & Chemical Corp (SNP) and Dril-Quip, Inc. (DRQ) – appear attractive for the short term.
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment