02-21-2012, 08:13 PM
I agree XOM would not like doing that, but they are realists, and they have a lot at stake. They simply need more NG... a lot more.
XOM coughed up big bucks to buy XTO, in order to get all its NG in the US. That was not even a good deal at the time, too much premium over market PPS and at the peak of US NG prices. It is certainly much less of a "deal" now that US NG is near $2.50/MCF.
Such recollections must create tender feelings in the XOM executive suites. However XOM is the company most likely to position itself long term, as it has all the resources to pay up when needed to get major assets. Buying XTO made it #1 in US NG, which is what they wanted long term.
Doing the same with IOC in PNG seems quite possible to me. An ego or two might be bruised in doing so, but they could handle that.
XOM coughed up big bucks to buy XTO, in order to get all its NG in the US. That was not even a good deal at the time, too much premium over market PPS and at the peak of US NG prices. It is certainly much less of a "deal" now that US NG is near $2.50/MCF.
Such recollections must create tender feelings in the XOM executive suites. However XOM is the company most likely to position itself long term, as it has all the resources to pay up when needed to get major assets. Buying XTO made it #1 in US NG, which is what they wanted long term.
Doing the same with IOC in PNG seems quite possible to me. An ego or two might be bruised in doing so, but they could handle that.