MELBOURNE--ExxonMobil Corp. (XOM) is taking an initial 10% stake in a joint venture to explore for gas trapped in Australian coal seams, placing a bet on an unconventional fuel that has attracted billions of dollars of investment Down Under and become one of the world's hottest energy plays.
Exxon's Esso Ventures unit is teaming up with closely-held Ignite Energy Resources Ltd. to explore and potentially develop reserves of methane gas occurring naturally in more than 16 billion metric tons of brown coal in the Gippsland Basin of southeast Victoria state.
International energy companies like Exxon are placing bets on unconventional fuels such as coal seam gas in Australia and shale gas in the U.S., after finding themselves increasingly locked out of easy-to-access oil and gas fields in countries like Russia, Saudi Arabia and Venezuela.
Australia's close proximity to fast-growing energy markets in Asia, a stable political system, and its transparent regulatory regime make the country appealing to investors.
More than 20 billion Australian dollars (US$19.6 billion) was spent in 2008 on coal seam gas deals in Australia alone by companies including Royal Dutch Shell PLC (RDSB), ConocoPhillips (COP) and BG Group PLC (BG.LN) of the U.K. in northeastern Queensland state.
However, the coal seam gas industry has faced a backlash from some politicians and environmentalists in Australia due to leaks at wells in Queensland, worries over the safety of new drilling techniques and potential contamination of groundwater supply, and some resources companies accessing private land without permission.
Read More
Nasdaq
No comments:
Post a Comment