Energy Business Review: BP Suspension, Exxon Mobil Shutdown

Energy company InterOil (NYSE:IOC) shares were higher in early trading, following an agreement between it and Pacific Rubiales Energy (PEGFF.PK), in which IOC will obtain a 10 percent net participating interest in the PPL237 petroleum prospecting license. The deal is potentially valued at $345 million, plus a final resource payment.

A 36 percent first quarter fall in net income, caused shares of Tenneco (NYSE:TEN) to do the same. Costs for refinancing and bond retirement were said to have been the culprit. The manufacturer of emission-control components and other automotive parts had been reporting very impressive growth in profits during the past year.

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Schlumberger (NYSE:SLB) will buy Tesco’s (NASDAQ:TESO) Casing and Drilling unit for $45 million in cash, which will enable the former to “focus on delivering best-in-class service quality and return on capital employed”.

BP (NYSE:BP) senior executive Lars Dencker Nielsen, who manages worldwide chartering, has been suspended in front of an inquiry into allegations of bribery, according to a Daily Telegraph report. The accusation is said to be that Nielsen received cash in return for multi-million pound contracts to a shipping supplier at favorable rates.

Part of Exxon Mobil’s (NYSE:XOM) pipeline in Louisiana was shut down Monday, following the discovery of a leak over the weekend. Regulators are closely watching the situation, as Exxon reports that an estimated 1,900 barrels from the North Line crude pipeline were contained in the near vicinity of the spill, and that no injuries were reported, and that there is “no danger to the public”.

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