Exxon Mobil Corporation (XOM) shares are trading higher premarket Monday, despite the company reportedly withdrawing from the competition to acquire a stake in a significant oil discovery off the coast of Namibia.
The news comes after over 12 major oil companies expressed interest in acquiring Galp Energia’s (GLPEY) 40% stake in the offshore Mopane discovery. This discovery, estimated to hold at least 10 billion barrels of oil and gas equivalent, is valued at over $10 billion. Galp proposed that the buyer would operate the field.
While the reasons for Exxon’s withdrawal remain unclear, the company’s decision highlights the competitive nature of the oil industry. Other companies, including TotalEnergies, Shell, and QatarEnergy, are still vying for the stake, indicating a continued appetite for exploration and expansion in the region.
Earlier this year, TotalEnergies entered into agreements to increase its stake in Namibia’s blocks 2913B & 2912, while Shell announced plans to drill exploration and appraisal wells in the area, focusing on the south of Namibia where recent discoveries suggest further potential.
This news comes on the heels of Exxon’s recent deal with Abu Dhabi National Oil Company (ADNOC), where ADNOC acquired a 35% equity stake in Exxon’s proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas.
Investors interested in gaining exposure to Exxon Mobil can do so through the Energy Select Sector SPDR Fund (XLE) and the IShares U.S. Energy ETF (IYE).
As of the last check premarket Monday, XOM shares were up 0.65% at $113.37.
