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ExxonMobil (XOM) Limits Production at Guyana Offshore Platform

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Exxon Mobil Corporation (XOM - Free Report) limited its level of production at the Liza Destiny floating platform due to the failure of a gas compressor, per Reuters. However, the company has not yet enumerated the current level of production.

Located nearly 190 kilometers off the coast of Guyana, Liza is the first and the biggest discovery in the Stabroek Block, and is intended to produce up to 120,000 barrels of oil per day. Notably, oil production in the block commenced in December 2019.

ExxonMobil’s wholly-owned subsidiary Esso Exploration and Production Guyana Limited (“EEPGL”) is the operator of the Stabroek Block, with a 45% ownership interest. The remaining stakes are owned by subsidiaries of Hess Corporation (HES - Free Report) and CNOOC Limited (CEO - Free Report) , holding 30% and 25% interest, respectively.

Exxon mentioned that the gas compression system will be shipped to Germany for repairing purposes. Notably, the shipping was scheduled to take place on Feb 9. The company added that the magnitude of damage will be determined once a thorough examination of the compressor is being conducted at the workshop of MAN Turbo, who is the manufacturer of the compressor based in Germany.

In 2020, Exxon Mobil reduced the volume of production at its flagship offshore project in Guyana. The reduction was caused as a result of mechanical issues related to the reinjection of natural gas. The company-led consortium made several discoveries in the Stabroek block, with more than 8 billion barrels of recoverable oil and gas, thereby, making the South American country a major oil producer.

Company Profile & Price Performance

Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.

Shares of the company have outperformed the industry in the past three months. Its stock has gained 38.8% compared with the industry’s 19.7% growth.

 

 

Zacks Rank & Another Stock to Consider

The company currently flaunts a Zack Rank #2 (Buy).

One other top-ranked player in the energy space is Eni SPA (E - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Eni’s earnings for 2021 are expected to increase 315% year over year.

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