Exxon Mobil and ConocoPhillips Negotiate Return to Venezuela
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Negotiations for Return: Exxon Mobil and ConocoPhillips are actively negotiating with President Rodriguez's government in Venezuela, seeking durable contract terms to resolve billions owed, indicating a strong desire to re-enter the country.
- Contract Negotiation Progress: While both companies believe Venezuela still has work to do on production-sharing agreements, they are encouraged by the government's willingness to negotiate various aspects of the contracts, suggesting potential alignment in cooperation.
- Strategic Market Opportunity: Exxon and Conoco are keen not to miss the chance to tap into one of the world's largest crude sources, especially as the region remains unaffected by Middle Eastern conflicts, highlighting their focus on future market potential.
- Political Risk Considerations: Although the government prioritizes the return of both companies and is investing significant resources, Exxon and Conoco remain cautious about potential political changes in the U.S. or Venezuela, emphasizing the need for very attractive deal conditions to seriously consider a return.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 146.960
Low
114.00
Averages
132.17
High
158.00
Current: 146.960
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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