Energy Business Review: Anadarko Petroleum BIDDING War, Baker Hughes SHUT DOWN
The bidding war for Anadarko Petroleum’s (NYSE:APC) partner Cove Energy (CNVGF.PK) might escalate with the news of another major natural gas discovery by the companies, in the Rovuma Basin offshore northern Mozambique. The strike could add 30Tcf to recoverable resources that are already discovered, and might also induce a higher offer for Cove from Royal Dutch Shell (RDS.A, RDS.B).
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A work stoppage initiated Saturday at Baker Hughes (NYSE:BHI) will shut down at least five oil and gas rigs belonging to Norway, though the oil industry association there says that production has not been impacted thus far. Affected operators include Exxon (NYSE:XOM), Eni (NYSE:E), Marathon (NYSE:MRO), Royal Dutch Shell, Statoil (NYSE:STO), Suncor (NYSE:SU), and Centrica.
CEO Greg Garland of Phillips 66 (PSX) reports that his company might make a stake in a second large new chemical plant in the Gulf of Mexico so as to take advantage of the cheap feedstock unlocked by the North American shale revolution. He adds that “After the Middle East, the U.S. is the next best place to make petrochemicals, because of the advantaged feedstock, and we see that continuing for some time.”.
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