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Are ExxonMobil and Royal Dutch Shell plc Just Wasting Their Money on This Project?

By Tyler Crowe - Jan 15, 2014 at 6:00PM

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10 years, almost $50 billion, and these companies still can't get the Kashagan project right. Is there any hope for this thing?

It's hard to believe that ExxonMobil's (XOM 0.87%), Royal Dutch Shell's (RDS.B), and Total's (TTE 0.54%) Kashagan project could get any more difficult, but recent pipeline leaks that caused a release of hydrogen sulfide gas are just more setbacks that have kept this project from operation. Each of these companies believe the project will get going again quickly, but who's to say it won't run into another major problem down the road?

With the consortium of companies spending nearly $50 billion dollars to get this project up and running, these minor setbacks can cause major headaches. Unfortunately, there is probably no way out for any of these companies, even if they wanted one. Tune into the video below to find out why it's so hard to walk away, and how this could impact these companies down the road.

Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them on Twitter @TMFDuffy and @TylerCroweFool, respectively. 

The Motley Fool recommends Chevron and Total SA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Royal Dutch Shell plc Stock Quote
Royal Dutch Shell plc
RDS.A
Exxon Mobil Corporation Stock Quote
Exxon Mobil Corporation
XOM
$94.00 (0.87%) $0.81
Chevron Corporation Stock Quote
Chevron Corporation
CVX
$159.85 (0.14%) $0.23
Royal Dutch Shell plc Stock Quote
Royal Dutch Shell plc
RDS.B
TotalEnergies Stock Quote
TotalEnergies
TTE
$54.02 (0.54%) $0.29
Eni S.p.A. Stock Quote
Eni S.p.A.
E
$24.14 (0.00%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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