US-based oil major Exxon Mobil might invest around $240 million at its Baton Rouge refinery, according to the Louisiana Economic Development (LED) department. The investment would significantly increase the refinery’s processing capacity. Currently, the refinery produces 517,000 barrels per day (bpd).
At the same time, the investment would also increase flexibility for meeting market demand, boost overall site competitiveness and install technology that would voluntarily cut volatile organic compound emissions by 10 percent.
Louisiana Gov. John Bel Edwards said in an LED written statement emailed to Rigzone, “ExxonMobil has operated in Baton Rouge for more than 110 years and has provided high-quality jobs for decades at the integrated refinery and chemical plant complex.”
“The 2019 announcement of the company’s decision to progress the Baton Rouge polypropylene project, combined with this potential investment, demonstrates that ExxonMobil has confidence in the future of Louisiana and in our outstanding workforce. Louisiana looks forward to working with ExxonMobil to make this investment happen.”
Chinese state-owned China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) are interested in ExxonMobil’s operating stake in the West Qurna 1 oil fields in Iraq. West Qurna 1 is one of the largest oil fields in Iraq.
Exxon owns a 32.7 percent stake in the Exxon oil field and it could be worth $500 million. However, it is currently uncertain whether a deal is in place or not. Also, geopolitical factors could lead to a no-deal situation in this regard. Previously, Exxon sold 25 percent of its stake in the oil field to PetroChina and 10 percent to Pertamina.