Posted on 01/09/2010 7:10:58 AM PST by thackney
Exxon Mobil Corp. is reportedly mulling over a deal with leading offshore rig contractor Transocean to construct a drilling rig capable of operating in extreme Arctic conditions for as much as $1 billion, according to Reuters.
Citing a person familiar with the matter, Reuters reported Friday that ExxonMobil may deploy the rig offshore Greenland, Iceland or Alaska at a dayrate close to record-level contracts in the $650,000 range, such as those signed for ultra-deepwater rigs by Seadrill and Transocean near the peak of the market in 2008.
In November, Transocean Chief Executive Bob Long stated that the company expected to unveil a new Arctic-class newbuild rig order, along with a contract, by the close of the year.
Chief Operating Officer Steven Newman, who will take the helm as Transocean's next chief executive in the first quarter of 2010, also commented during a recent conference call: "We have progressed [the rig's] design fairly far along [and] are in very developed discussions with a customer." Newman was hopeful that the contract would be finalized by the end of 2009, although Transocean had confirmed neither the contract nor the customer as 2009 drew to a close.
Only speculations pointing to ExxonMobil as the operator behind the contract have emerged out of major media outlets.
With plenty of oil majors still betting on deepwater drilling so long as higher oil prices justify the means, the largely untapped Arctic is becoming an attractive offshore drilling frontier with untold riches buried beneath its volatile surface.
Despite recently making a $30-billion acquisition of XTO Energy to tap its unconventional resources on land, ExxonMobil, the world's largest publicly traded international oil and gas company, is still comfortable opening its wallet to explore in high-risk offshore terrain. According to the oil heavyweight's website, the Company retains "a portfolio of significant Arctic opportunities, with ongoing studies spanning the range of exploration, project feasibility assessment and planning, and technology development."
Both companies declined to comment on the potential transaction when contacted by Reuters on Thursday.
Hey, Obozo, you watching, listening, comprehending ?
Shhhh!
Keep it under your hat for if Obozo gets wind of it he will do everything in his power to stifle them!
Hey, Obozo, you watching, listening, comprehending ?
Wait a minute ... do you mean Al Gore lied to us about that?
Now follow the logic here. Exxon spends $1 Billion for an arctic drilling rig which will pump out oil which, when burned, produces a lot of CO2 which, in turn is going to warm the arctic, thus forcing Congress to tax us about $1,000 Billion as penance for Exxon spending the $1 Billion in the first place.
So, in conclusion, wouldn’t we all be much better off if Exxon abandoned their plans and stopped looking for oil?
And he will by taxing it to death.
China must agree to lending the funds needed to Exonn.
Once that's done...it's a go.
Yes, and probably plotting ways to stop it. Lots of environmental considerations and red tape to throw in the way.
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