International Oil Companies (IOCs), including ExxonMobil, Chevron, BP, Total, Shell, and ConocoPhillips are planning to sell assets worth $27.5 billion in bid to invest in new regions, new research by Rystad Energy has said.

The research indicated that ExxonMobil alone may divest as much as $15 billion in an attempt to service investment in Mozambique, and oilfields in Guyana, and the Permian Basin, and the U.S. Gulf of Mexico.

Among other key gas projects in Mozambique, about $30 billion is expected to be invested in the country’s Rovuma LNG project, which has a capacity of 15 million tonnes a year (mtpa).

Amidst indications that some oil majors are looking to divest in Nigeria, ExxonMobil is reportedly planning to invest over S$500 million in the initial construction phase of its Mozambique LNG project.

Indeed, the face of stranded projects in Nigeria, Mozambique with its Coral Floating LNG project is on the verge of becoming the world’s largest gas producers with an estimated $128 billion flowing into the country’s gas sector alone before 2025.
Rystad Energy’s upstream analyst, Ranjan Saxena, said in a company statement that, “The expected transactions mean some of the majors are poised to exit certain regions, giving regional players and independents a chance to buy into key fields and help keep them profitable through production-life extensions and new developments.”

“While oil and gas majors increase their focus on core areas and divest mature assets and interests in geopolitically unstable regions, observers will be following closely to see how investors react and what other steps these energy giants will take to keep stakeholders interested amid rising climate concerns and geopolitical volatility.”

Rigzone had reported that the research body had revealed that BP and Shell occupied the top spots on opposite ends of the company’s Merger and Acquisition ranking for the oil and gas sector.

Source:- Guardianng

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