Exxon: Upstream Growth Continues

ExxonMobil Corporation (XOM - Analyst Report) on Tuesday said it has found hydrocarbons while drilling on the Dabakan-1 well in Service Contract 56 in the Sulu Sea off southern Philippines.

The data captured by Exxon stated that the company encountered reservoir sands and hydrocarbons at the time of drilling the well. The company expects the well to be drilled further to a total depth of approximately 5,000 meters. Upon completion, this will be the deepest well in the Philippines. Exxon plans to drill another well in Dabakan shortly. The estimated drilling cost of each well is $100 million.

On the other hand, Exxon has started development drilling at the large Point Thomson gas and condensate field, located 60 miles east of Prudhoe Bay, Alaska. It has spent $300 million on this project till date and expects a total expenditure of $1.3 billion for completion. The company is on track to have the project online in 2014.

Exxon expects a production of  10,000 barrels per day of condensates by 2014. BP plc (BP - Analyst Report), Chevron Corporation (CVX - Analyst Report) and ConocoPhillips (COP - Analyst Report) are partners with ExxonMobil in the project.

Production from the company’s ongoing projects will play a leading role in upstream growth, going forward. Exxon’s diversified portfolio of assets, both in terms of businesses as well as geographic locations, helps it produce stable results throughout the commodity price cycle.

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