Colombia oil auction disappoints, but Exxon dives in

Colombia announces disappointing results from its first oil auction in two years, drawing investment commitments totaling $1.4B which were well short of the $2.6B the government said it was expecting.

Submitted offers did include a few big names, as Exxon Mobil (XOM +0.6%) and Statoil (STO -0.1%) landed the rights to explore a new Caribbean Sea deepwater block in partnership with Repsol (OTCQX:REPYY, OTCPK:REPYF).

Colombia pumps ~1M bbl/day of crude oil, making oil the country's top export and main source of foreign revenue, but reserves are dwindling, and the government needs the money and know-how foreign companies can offer to explore offshore and to dig through shale.

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Comments (3)
  • Veritas1010
    , contributor
    Comments (3247) | Send Message
    STO following THE giant's footsteps works for me. XOM isn't perfect, but usually prescient and conservative. Hopefully a good move for both firms in need of long term stock replacement.


    disc.: long XOM, STO.
    23 Jul 2014, 10:45 PM Reply Like
  • Peng Liu
    , contributor
    Comments (3) | Send Message
    I don't get it. How did it slough off its dollar gain from June Mid East fears? It had decent growth, the labor unions didn't affect it that much in operations(hell its even making headway in negotiations), STL:NO(its Norway main branch) has risen a fair amount. So I don't see why its dropping, and what is with these odd shifts in volume?
    I recc long CVX, COP, both have major operations in N.America and with new shale beds opening up, fracking will continue to prove lucrative in growth.
    XOM is dodgy due to is high volume trading and also fluctuating market range.
    STO was a gamble, SLB, now that I might take a second look, but it being at an all time high makes me kinda nervous in buying.
    24 Jul 2014, 06:14 PM Reply Like
  • Veritas1010
    , contributor
    Comments (3247) | Send Message
    If you buy STO, buy on dips. It's dipping obviously as we speak....
    25 Jul 2014, 08:29 PM Reply Like
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