Energy Biz Review: Chesapeake’s NEW HEADACHE, Exxon’s Joint Venture
Here we go… Reuters is reporting that Aubrey McClendon of Chesapeake (NYSE:CHK) led a plot with Encana (NYSE:ECA) in which alleged bid-rigging in Michigan helped to suppress land prices in several prospective land deals. The news agency says that emails it has reviewed might provide evidence that the firms violated federal and state laws. Meanwhile on Monday, CHK shares took a huge hit on this news, as well as a (somewhat) separate report that J.P. Morgan refused to do loan business with the company for more than 10 years due of credit quality, while Goldman Sachs took the business anyway. For its part, Encana has released its first statement concerning the Reuters article: “In accordance with Encana’s policies, an investigation of this matter was immediately initiated. Encana therefore will not provide any further information at this time”, said Chairman David O’Brien.
Don’t Miss: Another SCANDAL for Chesapeake.
Royal Dutch Shell (NYSE:RDSA) (NYSE:RDSB) says the danger from Debby is over, and is redeploying its staff to offshore oil platforms in the Gulf of Mexico, which were were shut down in anticipation of tropical storm. Normal Gulf operations were supposed to have been resumed late Tuesday.
ExxonMobil’s (NYSE:XOM) joint venture with Saudi petrochemicals major SABIC has awarded a $3.4 billion engineering, procurement and construction contract to produce elastomers, to South Korea’s Daelim, France’s Technip and Spain’s Tecnicas Reunidas. The project will be conducted at Jubail Industrial City, and is scheduled for completion in 2015.
Don’t Miss: Gold and Silver Rebound While Equities Sink.
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