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
BP’s Kate Thomson Promoted to CFO, Joins Board
2024-02-05 - Before becoming BP’s interim CFO in September 2023, Kate Thomson served as senior vice president of finance for production and operations.
Magnolia Oil & Gas Hikes Quarterly Cash Dividend by 13%
2024-02-05 - Magnolia’s dividend will rise 13% to $0.13 per share, the company said.
TPG Adds Lebovitz as Head of Infrastructure for Climate Investing Platform
2024-02-07 - TPG Rise Climate was launched in 2021 to make investments across asset classes in climate solutions globally.
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
HighPeak Energy Authorizes First Share Buyback Since Founding
2024-02-06 - Along with a $75 million share repurchase program, Midland Basin operator HighPeak Energy’s board also increased its quarterly dividend.