Exxon Mobil Corporation (NYSE:XOM) is one of the leading players in Oil market. As per the reports published in Reuters, Exxon seems to start farming into the assets of Anadarko Petroleum Corp. Amongst many other locations, Anadarko has assets in Mozambique’s gas reserves. If everything goes fine, then Exxon will initiate farming activities at this property.
What’s Around The Corner:
The current market conditions have prompted Anadarko to take some difficult decisions. It is eagerly looking forward to disinvesting its share in the gas reserves of Mozambique. Apart from this property, Anadarko considers Qatar Petroleum as a solid contender. In amidst of all this, Royal Dutch Shell plc, based in London left the transaction after announcing publically its intentions to buy London-based BG Group plc for $70 billion.
There are various rumors in the market; hence, market experts are still not clear about Anadarko’s stand on executing this deal on an urgent basis. Even though the management has cleared the air by putting the property up for grab, but still there is no clarity about the remaining 26.5% stake. It has not yet announced whether it will continue its holding power at this stake or sell it in the near future.
Back in 2013, Anadarko sold 10% stake in the Deepwater Rovum Basin of Mozambique, which is located in the Offshore Area 1 block. As per the reports, the firm received a total of $2.64 billion for selling out this property spread over 2.6 million acres. Reporters got contacted Exxon Mobil Corporation (NYSE:XOM) to throw some light on this transaction, but it denied to disclose any detail.
There are high probabilities of Mozambique’s gas reserves to grow into one of the largest CNG producing hubs in the next three years. Experts believe that Exxon is aware of the potential of this property, which is why it wants to execute this deal as soon as possible.
