Energy Business Review: ConocoPhillips in Bengal, Chesapeake Energy Drops Hedges
ConocoPhillips (NYSE:COP) is taking advantage of a United Nations tribune’s border ruling regarding lands on the Bay of Bengal, which removed obstacles to expanded offshore oil exploration. According to Muhammad Hussain Monsur, chairman of state-run Petrobangla, Conoco plans to increase its operations in the Bay.
Don’t Miss: Expectations for Alcoa Earnings.
The United Kingdom’s BG Group (BRGYY.PK) expects to invest more than $2 billion on research and development in Brazil’s oil industry, as it hopes to become the largest foreign producer by 2020. BG has already spent $5 billion on the project and that figure could swell to tens of billions, even as Chevron and Transocean continue to struggle against charges from Brazil’s regulators.
Shares of Contango Oil & Gas (AMEX:MCF) move upwards following an agreement of the firm to form Exaro Energy III LLC. The plan is for Contango to invest up to $82.5 million in Exaro over the next five years, giving it about a 45 percent stake in the new company.
In a large policy reversal, Chesapeake Energy (NYSE:CHK) is said to have removed the major portion of its derivative hedges against gas and oil prices for 2012 and 2013. The firm once bragged at being “the best in the industry” at natural-gas hedging, so this is quite a notable change. Also on Monday, Chesapeake reported three oil and gas asset monetization transactions which total around $2.6 billion in cash.