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
US NatGas Prices Retreat From 2-Year Peak on Forecasts of Less Cold
2024-12-26 - U.S. natural gas futures fell more than 5% on Dec. 26 from a near two-year high in holiday-thinned trade.
Venture Global's LNG Tanker Heading Towards Germany, LSEG Data Shows
2024-12-26 - U.S. LNG company Venture Global LNG's tanker Venture Bayou is currently stationed at the Plaquemines LNG export plant.
US NatGas Prices Hit 23-Month High on Increased LNG Feedgas, Heating Demand
2024-12-24 - U.S. natural gas futures hit a 23-month high on Dec. 24 in thin pre-holiday trading.
Oil Prices Rise in Thin Pre-Holiday Trade
2024-12-24 - Supply and demand changes in December have been supportive of oil price's current less-bearish view so far, analysts say.
Steelhead Seeks Damages from Pembina, ARC Resources, Cedar LNG
2024-12-24 - Steelhead LNG said it has filed legal proceedings against Cedar LNG, Pembina Pipeline Corp. and ARC Resources related to improperly exploited information, Steelhead said.
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.