Sumitomo Corp. has quit the shale oil business in the U.S. by selling its stake in a project in the Eagle Ford during last quarter of 2020, a company spokesman said on Feb. 4.
“We will no longer invest in U.S. unconventional oil and gas projects,” Sumitomo CFO Masaru Shiomi told a news conference while adding that the Japanese trading house plans to maintain its stake in upstream oil projects in the North Sea and keep investing in gas projects.
Sumitomo bought a 100% stake in 2018 in a field in the Eagle Ford formation of South Texas that was set to have peak output of 3,000 boe/d.
It purchased the stake despite hefty impairment losses on its previous U.S. shale gas and oil assets in 2014-15 when slumping prices forced international energy companies and Japanese trading houses to write-down their assets.
Sumitomo decided to sell the stake last year, the company’s last shale gas and oil asset, the spokesman said, without giving a reason or a sum for the deal. The deal was first reported by the Nikkei business daily earlier on Feb. 4.
Previously, Sumitomo sold its entire stake in a Marcellus shale gas project in the U.S. for an undisclosed sum in 2020.
Recommended Reading
Water Management Called ‘Massive Headwind’ for Permian Operators
2024-11-21 - Amanda Brock, CEO of Aris Water Solutions, says multiple answers will be needed to solve the growing amounts of produced water generated by fracking.
Darbonne: The Power Grid Stuck in Gridlock
2025-01-05 - Greater power demand is coming but, while there isn’t enough power generation to answer the call, the transmission isn’t there either, industry members and analysts report.
TGS Launches Advanced Imaging Centers for Petrobras
2025-01-21 - TGS' 4D technologies will provide enhanced subsurface clarity in basins offshore Brazil for Petrobras.
E&P Highlights: Dec. 30, 2024
2024-12-30 - Here’s a roundup of the latest E&P headlines, including a substantial decline in methane emissions from the Permian Basin and progress toward a final investment decision on Energy Transfer’s Lake Charles LNG project.
Partnership to Deploy Clean Frac Fleets Across Permian Basin
2024-12-13 - Diamondback Energy, Halliburton Energy Services and VoltaGrid are working together to deploy four advanced electric simul-frac fleets across the Permian in an effort to enhance clean and efficient energy solutions in the region.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.