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Reuters: Exxon seeks to sell its stake in giant Azeri oil field

Published 12/04/2018, 08:38 AM
Updated 12/04/2018, 08:38 AM
Reuters: Exxon seeks to sell its stake in giant Azeri oil field
  • Exxon Mobil (NYSE:XOM) is seeking to sell its stake in Azerbaijan’s largest oil field, hoping to fetch up to $2B from the sale of its 6.8% slice of the Azeri-Chirag-Gunashli field in in the Caspian Sea, Reuters reports.
  • The original 1994 deal for the field's development was dubbed by Azerbaijan and partners as the “the contract of the century” thanks to the large reserves and hopes of future major discoveries that would help Europe diversify away from Russian oil and gas, but hopes faded as new large discoveries failed to materialize.
  • If XOM sells out of ACG, it would leave Chevron (NYSE:CVX) as the only U.S. company in the project, with a 9.57% stake, the third largest after BP and Azeri state oil firm Socar, with 30.4% and 25% respectively; Japan’s Inpex owns 9.3% and Equinor (NYSE:EQNR) holds 7.3%.
  • Now read: Buy 3.8%-Yielding Chevron For A High-Quality DGI Portfolio


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