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Gunvor Eyes Investment in U.S. Oil and Gas
Swiss commodity trading major Gunvor is considering asset purchases in the U.S. oil and gas space, Reuters has reported, citing unnamed sources, in a bid to build a better relationship with the Trump administration.
President Trump called Gunvor a “Russian puppet” after the Swiss company made a bid for the international business of Russian oil major Lukoil. The bid was worth $22 billion and there were no rivals but the U.S. sent a strong signal it would block the deal. Following that signal, Gunvor dropped its bid. Reports followed about U.S. heavyweights considering bids for Lukoil’s overseas business, including Carlyle, Exxon, and Chevron.
According to the unnamed sources who spoke to Reuters, the Swiss commodity trader had been interested in U.S. oil and gas assets even before it made its bid for Lukoil, but now, a potential purchase would have the added benefit of improving its standing with Washington.
As to the specifics of such a purchase or purchases, the Reuters sources said Gunvor was considering providing the funds for asset acquisitions by U.S.-based oil and gas independents to help them expand their footprint in the industry.
“The U.S. market remains a key growth area and we look forward to significant investments to come across the energy value chain,” Gunvor told Reuters in a statement regarding the news report.
According to the report, chances are that Gunvor would be more interested in natural gas rather than crude oil assets, per one of the sources. The other source noted that Gunvor had been among the bidders for the assets of Canadian Baytex Energy in Eagle Ford, which the latter sold last month for over $2.3 billion. Gunvor’s participation in the bid was in the form of financially backing the bid made by a Texas-based company, Percussion Petroleum.
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