News

An Exxon Mobil Corporation XOM-led consortium recently announced that its Liza Unity Floating Production Storage and Offloading (FPSO) vessel has achieved peak production, pumping out an impressive 252,000 barrels per day (bbl/day) offshore Guyana, per a Reuters report.

The consortium, comprising ExxonMobil, Hess Corporation HES and CNOOC, is gearing up for further advancements, with plans to inaugurate output next year using its newest vessel, One Guyana. According to the report, Alistair Routledge, Guyana Country Manager for ExxonMobil, announced the achievement on Wednesday at the Offshore Technology Conference in Houston, underlining the consortium's commitment to harnessing the region's vast oil potential.

Routledge highlighted the remarkable efficiency in the development of new wells within the deepwater Stabroek block, home to one of the largest oil discoveries in nearly a decade. He noted that these new wells are being completed in just 35 days, on average, setting a record low for deepwater projects.

Routledge highlighted that Guyana is poised to become the second-largest oil producer in Latin America, trailing only Brazil. He highlighted the notable progress achieved in the country's oil production sector, describing it as a substantial endeavor. Additionally, he mentioned that with the initiation of the sixth project, the total length of flowlines would reach 500 kilometers (311 miles).

ExxonMobil, as an operator, is set to embark on two "exciting but high-risk" drilling opportunities this year, namely Redmouth and Trumpetfish, targeting oil reserves. These endeavors aim to test the potential of the reserves and further expand production capabilities.

In line with its continuous expansion plans, the consortium has engaged Mitsui Ocean Development & Engineering Co. (Modec) to construct the FPSO vessel for its fifth offshore project, Uaru. Additionally, the recent sanctioning of the sixth project, Whiptail, anticipates commencing output by the end of 2027, contributing to a total output capacity of 1.3 million barrels per day for the consortium in Guyana.

With these advancements, the ExxonMobil-led consortium continues to play a pivotal role in Guyana's burgeoning oil industry, marking significant progress toward achieving its production goals.

Zacks Rank & Key Picks

ExxonMobil currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like EOG Resources Inc. EOG and Valero Energy Corporation VLO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.

The Zacks Consensus Estimate for EOG’s 2024 EPS is pegged at $12.21. The company has a Value Score and Growth Score of B each. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.

Valero Energy is a premier refining player with a presence across North America and the Caribbean. Its diverse network favors robust refining margins, utilizing cost-effective crude for more than half of its needs.

The Zacks Consensus Estimate for VLO’s 2024 EPS is pegged at $18.01. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2025 in the past seven days.

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