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"Exxon Mobil is reportedly planning to divest its 32.7% stake in Iraq’s West Qurna-1 oil field in a bid to slash its debt."
Here's why they want rid of it, it's cheap because it needs to be.
They just want out, it's a nightmare.
"Exxon Mobil Corp. is considering selling its stake in Iraq’s West Qurna-1 oil field in a sign that the supermajor is willing to part with one its marquee oil fields in the Middle East to reduce the mountain of debt accumulated last year."
"Covid-19 had a crushing impact on Exxon’s finances, causing its debt to balloon to more than $70 billion and prompting two downgrades in less than a year from Moody’s Investors Service."
"Exxon has slashed its annual capital spending by some $10 billion a year all the way out to 2025, saying it will focus on its core projects in Guyana and the Permian Basin. That may have pushed West Qurna-1 down the pecking order for the limited capital the company now has available for new developments."
The development of West Qurna and the other southern fields is dependant on the construction of the Common Seawater Supply Project to recover the oil and which is estimated to cost some $12 billion. This project has been dragging on for 10 years and the government said they would provide funding for it which needless to say never materialised, and here's why:-
“A lot of what needs to happen in order make this project [CSSP] progress will be in the hands of people who are less concerned about it working than about what they can personally pocket to allow it to occur,”
"The central problem for ExxonMobil was always – and remains - that the risk/reward elements of the contract are profoundly unbalanced, a senior oil and gas industry source close to negotiations told OilPrice.com."
"The lack of a meaningful structure by which law relating to the origination, monitoring, and administration of business agreements opens ExxonMobil up to a plethora of problems in the future. Many leading politicians on the opposite side of whoever is nominally in charge of Iraq at the time have clearly said that they will not stand by the decisions relating to the oil and gas industry made by their predecessors, which means that any agreement done now with ExxonMobil is meaningless,”
Another problem is the crap and deeply unpopular Technical Service Contracts that the IOCs that operate in southern Iraq have to work under.
It's all here:-
The Real Reason Why ExxonMobil Won’t Go Ahead With $53 Billion Iraqi Megaproject.
hTTps://oilprice.com/Energy/Energy-General/The-Real-Reason-Why-ExxonMobil-Wont-Go-Ahead-With-53-Billion-Iraqi-Megaproject.html
Indeed there are cages severely rattled by the sound of it - but not mine ! LOL But somebody is , if they can spend hours going though all my old posts. Why dont you post my old technical posts on Oil Issues and FDP’s ?
I have never given MY value of GKP because Corporate Finance is not my area. However what I did was give the opinion of an expert I happen to know and trust. My strategy is the same now as it was 10 years or so ago ,when I was tipped of about GKP by another expert friend. HOLD and buy large dips.
As for trolls , you have only to look at the tremendous time and effort being put in to pursuade us that GKP is worth a few pounds . The constant attacks on ONLY +ve and knowledgable posters , then ask yourself why ? Why would groups , or individuals go to such lengths - over a period of ~ 10 years ?
Then this “Paul” they all seem so obsessed about ( another +ve poster BTW ) but they don’t seem to bother about the likes of Bigdog5 or Macfly/OM63 posting none stop rubbish 24/7 for a DECADE. Why not ?
As for CPR’s ? Go and google what a CPR is , and actually for.
Calling me duplicitious ? That’s not just the pot calling the kettle black it’s the whole kitchen
Yes I made a genuine mistake with Shamaran.
I stand by my prior observation CCC - you are an idiot.
GLA genuine holders
TBH I havent stopped laughing all afternoon. What with Broadfraud here , and that idiot BD5 on ADVFN . Someone really needs to write a sitcom for the BBC. Im sure they would publish it. I can live with a genuine mistake.
Yet never a cheep about all the troll nonsense talked on here by the likes of that other idiot CCC. If you cant see whats going on boys and girls then you shouldnt be holding GKP shares.
Have a good weekend - I will.
LOL
Apologies to all.
I misread a research report and got my figures incorrect.
SS
Is it true Shamaran paid $30 a bbl for this ?
"June, 2018 Shamaran Petroleum announced that it intends to purchase Marathon Petroleum's 15% share of the Atrush Block. With effect from Jan 1, 2018. The sale is expected to close in the first quarter of 2019."
If so how does this affect the Shaikan valuation ?
" On retrospect I notice you still havent answered my questions of a few weeks ago either.
"Yes i did surrey, i said i was not going too, that means i am not going too."
Then dont talk nonsense in the first instance CCC. There are no "gas issues " or "FDP issues" and its TO.
"Your calculation is irrelevant and wildly out of sorts to current value."
Ok , then post your calculations and assumptions to support this. Because my "calculation" was done by an ex XOM work colleague as I explained. and it is possible as has just been explained to you by a fellow poster.
Your calculation is irrelevant and wildly out of sorts to current value.
I cant remember either of those Tom .
Can you find the posts ?
Thanks
SS
Stop ducking and diving CCC.
Thanks R2R but I asked CCC.
Thanks R2R but I asked CCC.
A Gas Management Plan is not a "gas Issue" it is a normal part of Industry Business.
A draft FDP is not an issue its a normal part of Industry business. The plan has to be agreed and approved by all parties.
On retrospect I notice you still havent answered my questions of a few weeks ago either.
(1) explain exactly what the "alleged " gas issue is
(2) Explain the (alleged) issue with the FDP
(3) Explain why you disagree with my sale price for GKP of £17 -25. Give your calculations.
Many thanks
SS
I answered that on ADVFN CCC. But here it is again.
I had ~ 500k I bought for around 6p ( if I remember correctly. I sold some at £3.20 when it was obvious from Technical Analysis what the city thought . I kept a few . I bought a million at 2p before the restructuring. Took my full allowance after the restructuring and have been buying the dips ever since.
Now , your turn , why do you tell us where you met OM63/Macfly and Broadford Bay and how you managed to get involved with them ?
Many thanks SS
Bye Bye CCC ?
( Celicourt Communications ) long overdue.
LOL
ASOS went from ~ 10p to ~ £67.00 in around 12-14 years if I remember correctly.
About ten or so years ago GKP went from 4p ~ £1.47 after they found SH-1
There are 2 probably outcomes for GKP.
(1) Continue to develop Shaikan in house over a number of years and pay regular dividends.
(2) A sale to someone who will Fasttrack development in the shortest time possible.
The KRG needs revenue. They are actively encouraging USA Oil Majors to invest in Kurdistan. The USA has a number of military bases in the country so it wouldnt be too happy about Chinese or Russian involvement.
I know which one I think more probable.
IMO
Thats my fault NOBULL . I keep forgetting that genuine , positive investors are not welcomed by the trolls.
Especially one that thought GKP was till on AIM.
BTW I have been in GKP for 12 years to your 10 minutes.
LOL
He then reviewed a set of the Ministry's projects, inviting the US companies to invest in the energy sector in Kurdistan.
Very interesting , who did he have in mind ? (apart from XOM that is)
LOL
Its the "last chance saloon" for both of them. They either do a deal , pass the O&G Law, or Civil unrest and Anarchy will take over and we really will be scr*wed.
They have a decade of reasonable oil prices left at best.
If they cant see whats down the road now. They never will.
IMO
Reducing Flaring not stopping it. They can either reinject or clean it and sell it. With the latter the more cost effective option. Though both require expensive kit.
Yes this will be described in the final FDP.