New Oil – A bidding War.

The Tullow Oil rumours are gaining pace. In 2009 we have seen them tipped as a possible takeover many times, and in some of the biggest financial publications.

Today Reuters has a story about three Chinese Oil Majors having a look at Tullow Oil.

These rumours are probably to be expected. Tullow Oil is a Junior with a big reputation, their many global assets are admired, in particular the findings in Ghana and Uganda. Whilst China, whose appetite for commodities has increased during the global economic downturn, is also looking for potential. Its state backed companies have been linked to several commodity plays.

With the Oil Price down at $40 a barrel, the Oil Majors have been linked with making a play for many of the Juniors. Recently there have been rumours that both Exxon and BP have considered making a play for Tullow.

Tullow gets a lot of attention due to the African findings, and as a popular Junior obviously makes good press, but many other Juniors will also be getting the once over.

What intrigues me is that what happens if China make a move, will Exxon and the other Majors compete, will the prices of the most attractive Juniors rocket ….. let hope so.

I do not currently hold Tullow (TLW.L)

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