04-23-2015, 11:22 PM
My guess is that as usual industry happenings cause analysts to speculate. This then causes half-understanding reporters to ask and ask and ask when companies are at conferences so they have a story to print.
Shell launches takeover of BG Group and the speculation began. Who's next? Will Exxon launch a bid for BP because they are vulnerable? Which other companies might be bought out? Interoil? Let's ask and see what they say. Pound them with questions because someone is saying that a buyout COULD happen. So they get an answer which you'd expect. "Sure. If someone makes an offer we would listen, but it better be a blockbuster because we are sitting on 27Ts and the Board won't entertain low-ball bids".
Management has said in the past that from time to time they get inquiries; this is a little different because the drop in oil prices has created a perfect storm for those involved in oil or affected by it's drop.
So far the only real valuable asset is within PRL 15 and both Total and OSH will have preemptive rights just as there has been discussion about whether Shell might lose some of the assets they want should China or others exercise their preemptive rights, and with too much of that BG's value to Shell might get less. As other have said, Total (and probably OSH) are seen as having PRL 15 locked up as far as the real value of IOC. IF they prove up a Wahoo or even PRL 39 further, things might get more interesting. So many times in the past IOC was going to get bought out, but nothing ever materialized. IMHO it's the same until they get close to or to FID and have had time to drill Wahoo, etc.
Shell launches takeover of BG Group and the speculation began. Who's next? Will Exxon launch a bid for BP because they are vulnerable? Which other companies might be bought out? Interoil? Let's ask and see what they say. Pound them with questions because someone is saying that a buyout COULD happen. So they get an answer which you'd expect. "Sure. If someone makes an offer we would listen, but it better be a blockbuster because we are sitting on 27Ts and the Board won't entertain low-ball bids".
Management has said in the past that from time to time they get inquiries; this is a little different because the drop in oil prices has created a perfect storm for those involved in oil or affected by it's drop.
So far the only real valuable asset is within PRL 15 and both Total and OSH will have preemptive rights just as there has been discussion about whether Shell might lose some of the assets they want should China or others exercise their preemptive rights, and with too much of that BG's value to Shell might get less. As other have said, Total (and probably OSH) are seen as having PRL 15 locked up as far as the real value of IOC. IF they prove up a Wahoo or even PRL 39 further, things might get more interesting. So many times in the past IOC was going to get bought out, but nothing ever materialized. IMHO it's the same until they get close to or to FID and have had time to drill Wahoo, etc.