Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Exxon Mobil Corp. (XOM) Sent Packing

Exxon Mobil Corp.’s plans for developing the mammoth Point Thomson oil and natural gas field have been tossed out by Alaskan State Officials. Exxon is now taking legal action to determine if the state government has the right to revoke such leases.

Point Thomson is one of the largest undeveloped oil fields in the U.S., and the Alaskan government has been bothered by the inaction of oil companies with regards to the field. It is estimated that Point Thomson holds around eight trillion cubic feet of natural gas, and hundreds of millions of barrels of oil. The Alaskan rejection of Exxon Mobil’s plans is the latest in a recent rash of anti-oil moves made by their government.

Citing previous failings by the company, Kevin Banks, the head of the oil-and-gas division in Alaska’s Department of Natural resources, has said that Alaska cannot be sure Exxon will adhere to the proposed project’s time-table. The proposal was for a $1.3 billion drilling operation which was expected to produce around 10,000 barrels a day of gas condensate by 2014. Exxon also commented that Point Thomson could produce as much as 70,000 barrels of oil and 4.5 billion cubic feet of natural gas per day – making it one of the largest projects on Exxon’s radar.

While other companies like ConocoPhillips, Chevron, and BP were hoping to build a pipeline from the Point Thomson area to the continental U.S., the legal action being taken by Exxon will slow those plans and grind them to a halt. Exxon currently has a 37% stake in Point Thomson, with BP holding 32%, Chevron at 25%, and ConocoPhillips with a 5% share.

Let us hear your thoughts below:

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *