Exxon Mobil Corporation (NYSE:XOM) and Niko Resources Return Oil & Gas Blocks to the Indonesian Government

The recent buzz from Exxon Mobil Corporation (NYSE:XOM) is that the company has returned four oil and gas blocks to the Indonesian government. The government was notified of the development, after the company’s initial assessments revealed that the oil reserves were simply just not enough for the company to extract. The announcement was made by the Indonesian Vice-President of Exxon Mobil Corp, Erwin Maryoto. The returns add to the pile, after the government also received six blocks in return from Niko Resources. The later was done on the grounds that the oil and gas regulator, SKKMigas, refused to renew the company’s contract.

Read why analyst may see a swing in the momentum for XOM.

The country had been recognized as major producer of oil and was part of OPEC, from 1962 to 2008. Its membership was withdrawn, after the country started importing the fossil fuels. The country has yet to tap into its off-shore reserves though.

Niko is a company that is originally based in Canada, but conducts most of its operations in South East Asia. The company had spent its first six years, involved in mining efforts in the Western Canadian Basin. Since 1993, the company has started move its operations away from Canada and into the third world countries.

Exxon Mobil Corporation (NYSE:XOM) is an American based company and is recognized as the descendant of standard oil. The company is also associated with Imperial Oil in Canada. It is the 5th largest company in the world, in terms of revenue and the 2nd largest, in terms of public trading. Spread across 21 countries, with 37 refineries, it is considered the largest oil extractor in the world. The oil company has attracted a lot of criticism from environmentalists. This was especially the case when it started lobbying against the fact that climate change is related to burning of fossil fuels. Exxon has also been criticized for not living up to human rights and a number of American policies. Consequently, the company has started to operate in an environmentally friendly manner. It is desperately trying hard to achieve a better reputation as a company that cares for Mother Nature.

David Barry

David Barry

Barry is a senior journalist at Us Markets Daily. He reports, shoots and edits many of his own stories by himself.