At the beginning of 2010, Exxon Mobil (NYSE:XOM) and Qatar signed an agreement for a $6 billion chemicals project, which now looks like the oil giant is about to lose.
According to an unnamed source, Qatar Petroleum said they will choose a partner which makes them the best offer.
Since they already signed an agreement with Exxon, it implies there must have been another offer which has significantly come under that of Exxon.
Adding some interest to the story, a spokesman for Exxon Mobil, Jeffrey Neu, said they continue to work with Qatar Petroleum on the project, which it would seem he wouldn't assert if it wasn't the case.
But the Middle East Economic Digest contradicted Neu's assertions, citing those close to the matter, saying the deal has in fact been terminated, and the company is now searching for new partners for the deal.
While it's impossible to put this story together definitively, it does suggest there are at least tension behind the deal, and it could be a move to generate better terms for Qatar Petroleum.
If not that, it doesn't make sense what the Exxon spokesman said, which could easily be verified.
It sounds like an insider who knows part of the story may be talking, or someone who heard talk of what the company may want to do, and not the reality of where they stand today.
Either way, it does seem there is part of the story that's true, and Exxon may have a battle on its hands to keep the project under their fold.
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