The price of gas has never been better but the upstream is becoming hideously exposed. ExxonMobil's Australia Bass Strait Assets Up for Sale Again Home ExxonMobil subsidiary Esso operates the Bass Strait oil rigs in a joint venture with BHP.Credit:James Davies. Rob Harris is the National Affairs Editor for The Sydney Morning Herald and The Age, based at Parliament House in Canberra. The source said that it was likely the buyer would come from overseas as the complexity of the Bass Strait operation could be unappealing to local players such as Beach Energy or Cooper Energy. US major ExxonMobil has hung a for sale sign on oil assets which are currently producing 19,000 b/d in the Bass Strait off southeastern Australia, a company spokesman said Wednesday. ExxonMobil (XOM) is likely to gain $3 billion from the Gippsland Basin hydrocarbon development divestment. ExxonMobil puts Victorian oil and gas assets up for sale By Nick Toscano , Rob Harris and Mathew Dunckley Updated September 18, 2019 — 5.47pm first published at 3.19pm That said, there was proven demand around the world in locations such as the North Sea for fields that were approaching the end of production. Tags: Buyers have not yet been determined, no agreements have been reached. "I couldn't imagine these processes would happen quickly.". "No agreements have been reached and no buyer has been identified.". This is the second attempt by the oil and gas giant in the last three years to sell Australian enterprises, including a long-running project in the Gippsland basin. "If there is a potential sale we want to make sure we secure the jobs of our members and their terms and conditions," he said. In February 2018, ExxonMobil and its joint venture partner BHP Group stopped the 20-month asset sale process. A sale process for its older oil-producing assets, which BHP joined, wound up in February last year after a buyer failed to materialise. Yahoo is part of Verizon Media. It was previously reported that ExxonMobil stopped production in Norway after more than 100 years of operation. "There is a significant regulatory environment they need to navigate," he said. ExxonMobil subsidiary Esso operates the Bass Strait oil rigs in a joint venture with BHP. "ExxonMobil continually reviews its assets for their contribution toward meeting the company's operating needs, financial objectives and their potential value to others," a spokesman said. Select it and press CTRL + ENTER, Saudi Aramco's net profit fell almost 47%, Brent price rose to almost $39 per barrel, Libya has increased oil production to 800 thousand barrels per day. You can change your choices at any time by visiting Your Privacy Controls. Global oil and gas giant ExxonMobil has put its assets in Victoria's Bass Strait on the market. ExxonMobil is planning a retreat from the North Sea with a $2bn (£1.6bn) sale of its oil and gas fields after almost 50 years in the UK’s oil basin.. Mathew Dunckley is digital editor at The Age. American Energy Corporation will sell its oil and gas assets for $4 billion. David Morcom, chief executive of Gippsland's Wellington Shire Council, said the announcement was "clearly big news ... but will take months and even potentially years to play out". In February 2018, ExxonMobil and its joint venture partner BHP Group stopped the 20-month asset sale process. "BHP recognises the importance of the Gippsland Basin Joint Venture to the reliable supply of gas into the east coast domestic market and we remain committed to maintaining that supply," a spokesman for BHP said. "And Bass Strait just lacks the materiality to make any difference to Exxon.". Unions representing many of the several hundred workers and contractors at the operation said management had notified staff on Wednesday morning. ExxonMobil said operations would continue as normal during the sale process. To enable Verizon Media and our partners to process your personal data select 'I agree', or select 'Manage settings' for more information and to manage your choices. Credit Suisse analyst Saul Kavonic has recently queried whether ExxonMobil and BHP may decide it was "best to pull out of Bass Strait gas lest they leave it too late as they did for the oil side of things". Mining giant BHP on Wednesday said it had been notified by Esso Australia of its intention to "market its interests in Bass Strait". Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. Add articles to your saved list and come back to them any time. The American corporation will “test market interest” in its global assets, including Australian ones, the e-mail message said. As part of a program to reduce non-core assets and increase returns to shareholder, ExxonMobil is again trying to sell its assets in southeast Australia. Australian Manufacturing Workers Union organiser Steve Dodd said the announcement was unexpected and he held concerns about members' jobs and conditions. The potential sale comes amid a global review of ExxonMobil's portfolio. Energy giant ExxonMobil has confirmed its Gippsland Basin gas assets are up for sale as part of a global divestment review. Exxon Mobil Corp said on Wednesday it was looking to sell its 50% stake in the Gippsland Basin oil and gas development in Australia's Bass Strait as part of a broader review of its global portfolio of assets. "You shouldn't underestimate the value the right operator can get out of a late-life asset," he said. It is reported by Enkorr with reference to Worldoilnews. The joint venture, which dates back to 1964, supplies between 40 per cent and 50 per cent of east coast Australian domestic gas demand, but, more recently, output from the oil fields has been in decline. "They can be lucrative to a business that doesn't carry the same overheads.". We and our partners will store and/or access information on your device through the use of cookies and similar technologies, to display personalised ads and content, for ad and content measurement, audience insights and product development. The company plans to use the proceeds from the sale of assets to finance promising projects in Papua New Guinea, Texas and Brazil. Ben Davis, state secretary of the Australian Workers Union, said the advice to members for now was to "keep carrying on at work as usual". Saudi Aramco's net profit fell almost 47% An energy industry source, who declined to be named due to legal restrictions, said there were a number of challenges to the Bass Strait operation that would require heavy capital expenditure for returns that would not be appealing to a company the size of ExxonMobil. “ExxonMobil is constantly checking its assets for their contribution to meeting the company's operational needs, its financial goals and their potential value to others”, the statement said. Buyers of ExxonMobil properties for sale “must understand that we are talking about old assets and that their production will be reduced; they should also plan significant costs for decommissioning these facilities”, said Angus Roger, research director at Wood Mackenzie Ltd. “The fact that a previous attempt to dump Gippsland’s oil assets [in the basin] failed because of the uncertainty about the costs of shutting them down shows how serious this problem is”. Brent price rose to almost $39 per barrel, Noticed an error? gas, contracts, oil, hydrocarbon production, USA, energy market, gas production, добыча нефти, drilling, foreign affairs, Oil prices are growing steadily "This is a substantial asset holding and there are still significant gas reserves in the basin.". "The price of gas has never been better but the upstream is becoming hideously exposed," he said. Buyers have not yet been determined, no agreements have been reached. "We are certainly not panicking," he said. Business reporter for The Age and Sydney Morning Herald. "ExxonMobil will be testing market interest for a number of assets worldwide, including its operated producing assets in Australia, as part of an ongoing evaluation of its assets," a company spokesman said. "Our priorities continue to be effectively meeting the expectations of our customers, employees and business partners, while maintaining a consistent focus on safe and efficient operations," the spokesman said. Mr Morcom said the council would seek discussions with ExxonMobil's senior management in coming weeks in order to plan for "whatever contingencies may arise". ExxonMobil puts Victorian oil and gas assets up for sale. The assets, which ExxonMobil subsidiary Esso Australia owns in a joint venture with miner BHP Group, include 19 offshore platforms, the Longford and Long Island Point plants and associated infrastructure and production fields, the company said. Earlier this month, the company confirmed that it had been in talks with Spanish Repsol SA on the sale of deep-sea assets in the Gulf of Mexico. It is not the first time ExxonMobil has sought to exit assets in the field. The American corporation will “test market interest” in its global assets, including Australian ones, the e … Find out more about how we use your information in our Privacy Policy and Cookie Policy. Asset for sale The layoffs in Australia come as ExxonMobil is looking to sell its 50% stake in the Bass Strait oil and gas joint venture, which analysts have estimated could fetch up to $3 billion. "If they find a buyer, it would take a while to play out," Mr Davis said. Based in our Melbourne newsroom, he was previously business editor for The Sydney Morning Herald and The Age and Melbourne bureau chief for the Australian Financial Review. Exxon’s other producing asset in Australia is a 25% stake in the giant Gorgon liquefied natural gas project in Western Australia, which is not part of the sale process.

Xxl Live 2019, Awnie's House Youtube Net Worth, I Sexually Identify As A Toaster, Hpd Dismissal Request, Democracy Institute In America Poll,