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ExxonMobil (XOM) Eyes Liza Destiny FPSO Glitch Repair by June
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Exxon Mobil Corporation (XOM - Free Report) is expected to repair technical problems in the Liza Destiny floating production storage and offloading (FPSO) unit, operating offshore Guyana, before mid-2021, per reports. The ambitious oil project is the first in Guyana, a country that is now relying on oil revenues to improve its economy.
The Liza Destiny FPSO vessel started oil production in December 2019, within five years of discovery. However, in January 2021, gas compressor issues started in the vessel, which later forced ExxonMobil to decrease output from the field in order to reduce flare. Last December, the glitch in the re-injection process was solved and production at the site was restored to the original target of 120,000 barrels of oil per day (bpd).
During April 2021, ExxonMobil faced another setback at the site after the discharge silencer started facing technical problems. The company curbed production to alleviate hydrates formation in the subsea systems and minimize gas flaring. The energy giant is working with SBM Offshore and MAN Energy Solutions for repairing the discharge silencer. The malfunctioning flash gas compressor system will use a redesigned stage discharge venturi, which is being transported to Guyana.
With the help of the key component, operations are expected to normalize by June. The Liza Phase 1, which has a breakeven Brent price of $35 per barrel of oil, is expected to play a crucial role in boosting the company’s cash flows.
Markedly, ExxonMobil has so far made multiple world-class oil discoveries at the Stabroek Block, located off the coast of Guyana. It estimates gross resources of much more than 9 billion barrels of oil equivalent from the block. At least six FPSO vessels will likely be added, which will be capable of yielding 800,000 barrels of oil per day (bpd) by 2025. Furthermore, production is expected to reach 1 million bpd by 2027. It anticipates multibillions of exploration potential to be still left in Guyana.
ExxonMobil, with a 45% interest, is the operator of the Stabroek Block that covers 6.6 million acres. Partner Hess Corporation (HES - Free Report) owns a 30% interest in the block. The remaining 25% stake is held by a wholly-owned subsidiary of CNOOC Limited.
Price Performance
The stock has gained 32% in the past year compared with 24.6% rise of the industry it belongs to.
Braskem’s bottom line for 2021 is expected to rise 231.3% year over year.
PHX Minerals’ bottom line for 2021 is expected to surge 40% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
ExxonMobil (XOM) Eyes Liza Destiny FPSO Glitch Repair by June
Exxon Mobil Corporation (XOM - Free Report) is expected to repair technical problems in the Liza Destiny floating production storage and offloading (FPSO) unit, operating offshore Guyana, before mid-2021, per reports. The ambitious oil project is the first in Guyana, a country that is now relying on oil revenues to improve its economy.
The Liza Destiny FPSO vessel started oil production in December 2019, within five years of discovery. However, in January 2021, gas compressor issues started in the vessel, which later forced ExxonMobil to decrease output from the field in order to reduce flare. Last December, the glitch in the re-injection process was solved and production at the site was restored to the original target of 120,000 barrels of oil per day (bpd).
During April 2021, ExxonMobil faced another setback at the site after the discharge silencer started facing technical problems. The company curbed production to alleviate hydrates formation in the subsea systems and minimize gas flaring. The energy giant is working with SBM Offshore and MAN Energy Solutions for repairing the discharge silencer. The malfunctioning flash gas compressor system will use a redesigned stage discharge venturi, which is being transported to Guyana.
With the help of the key component, operations are expected to normalize by June. The Liza Phase 1, which has a breakeven Brent price of $35 per barrel of oil, is expected to play a crucial role in boosting the company’s cash flows.
Markedly, ExxonMobil has so far made multiple world-class oil discoveries at the Stabroek Block, located off the coast of Guyana. It estimates gross resources of much more than 9 billion barrels of oil equivalent from the block. At least six FPSO vessels will likely be added, which will be capable of yielding 800,000 barrels of oil per day (bpd) by 2025. Furthermore, production is expected to reach 1 million bpd by 2027. It anticipates multibillions of exploration potential to be still left in Guyana.
ExxonMobil, with a 45% interest, is the operator of the Stabroek Block that covers 6.6 million acres. Partner Hess Corporation (HES - Free Report) owns a 30% interest in the block. The remaining 25% stake is held by a wholly-owned subsidiary of CNOOC Limited.
Price Performance
The stock has gained 32% in the past year compared with 24.6% rise of the industry it belongs to.
Zacks Rank & Stocks to Consider
Currently, ExxonMobil carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Braskem S.A. (BAK - Free Report) and PHX Minerals Inc. (PHX - Free Report) , each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Braskem’s bottom line for 2021 is expected to rise 231.3% year over year.
PHX Minerals’ bottom line for 2021 is expected to surge 40% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>