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ExxonMobil (XOM) Bolsters Egypt Offshore Exploration Ties
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Exxon Mobil Corporation (XOM - Free Report) and QatarEnergy, a state-owned energy titan, have signed a framework agreement to acquire two offshore exploration sites off Egypt’s coast.
Per the deal, QatarEnergy will hold a 40% stake in the Masry and Cairo concessions, with ExxonMobil retaining a 60% working interest. This partnership, pending approval from the Egyptian government, marks a significant expansion in the offshore exploration endeavors of both companies.
The Masry and Cairo concessions, located off the north coast of Egypt, span approximately 11,400 square kilometers in water depths of 2-3 kilometers. Initially awarded to ExxonMobil in January 2023, these blocks were planned to be entirely under ExxonMobil's control. However, the new agreement with QatarEnergy reflects a strategic collaboration aimed at bolstering hydrocarbon exploration and production capabilities in the region.
The acquisition is part of a broader strategy by QatarEnergy to expand its footprint in the global energy market. QatarEnergy is also significantly enhancing its gas reserves beyond Egypt. The company is adding another expansion project to its portfolio at the North Field, complementing the existing North Field East and North Field South projects with the new North Field West project. This initiative is projected to increase Qatar’s LNG production capacity by 85% from the current level by 2030.
QatarEnergy’s involvement in Egypt’s energy sector has been growing steadily. With the latest deal, the total number of the company’s offshore exploration areas in Egypt rises to six. These include areas three and four in the Red Sea, the North Marakia area in the Mediterranean, and the newly acquired Cairo and Masry offshore areas. This expansion underscores QatarEnergy’s commitment to enhancing its regional operations and establishing a significant presence in Egypt’s burgeoning oil and gas sector.
ExxonMobil’s partnership with QatarEnergy is not new. In 2020, ExxonMobil was awarded the North Marakia offshore block, covering 4,847 square kilometers in water depths of 1-2 kilometers. In 2022, QatarEnergy purchased a 40% stake in the block, leaving ExxonMobil with 60% ownership. This earlier collaboration set the stage for the current agreement, showcasing the synergy between the two energy giants in maximizing the potential of Egypt’s offshore resources.
The strategic alliance between ExxonMobil and QatarEnergy is poised to significantly impact the energy landscape in Egypt and beyond, leveraging their combined expertise and resources to unlock opportunities in offshore exploration and production. As these projects progress, they are expected to contribute to the region’s energy security and economic growth, reinforcing the pivotal role of international partnerships in the global energy industry.
Zacks Ranks & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold).
SM Energy is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.60 and $7.46, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Ecopetrol operates across various sections of the oil and gas industry, including the exploration, development, and production of oil and gas, refining, transportation, and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days. The Zacks Consensus Estimate for EC’s 2024 and 2025 EPS is pegged at $2.55 and $2.63, respectively.
Hess is a leading oil and natural gas exploration and production company. The company’s oil and gas proved reserves increased year over year last year by more than 8%.
The Zacks Consensus Estimate for HES’s 2024 and 2025 EPS is pegged at $9.17 and $11.15, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
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ExxonMobil (XOM) Bolsters Egypt Offshore Exploration Ties
Exxon Mobil Corporation (XOM - Free Report) and QatarEnergy, a state-owned energy titan, have signed a framework agreement to acquire two offshore exploration sites off Egypt’s coast.
Per the deal, QatarEnergy will hold a 40% stake in the Masry and Cairo concessions, with ExxonMobil retaining a 60% working interest. This partnership, pending approval from the Egyptian government, marks a significant expansion in the offshore exploration endeavors of both companies.
The Masry and Cairo concessions, located off the north coast of Egypt, span approximately 11,400 square kilometers in water depths of 2-3 kilometers. Initially awarded to ExxonMobil in January 2023, these blocks were planned to be entirely under ExxonMobil's control. However, the new agreement with QatarEnergy reflects a strategic collaboration aimed at bolstering hydrocarbon exploration and production capabilities in the region.
The acquisition is part of a broader strategy by QatarEnergy to expand its footprint in the global energy market. QatarEnergy is also significantly enhancing its gas reserves beyond Egypt. The company is adding another expansion project to its portfolio at the North Field, complementing the existing North Field East and North Field South projects with the new North Field West project. This initiative is projected to increase Qatar’s LNG production capacity by 85% from the current level by 2030.
QatarEnergy’s involvement in Egypt’s energy sector has been growing steadily. With the latest deal, the total number of the company’s offshore exploration areas in Egypt rises to six. These include areas three and four in the Red Sea, the North Marakia area in the Mediterranean, and the newly acquired Cairo and Masry offshore areas. This expansion underscores QatarEnergy’s commitment to enhancing its regional operations and establishing a significant presence in Egypt’s burgeoning oil and gas sector.
ExxonMobil’s partnership with QatarEnergy is not new. In 2020, ExxonMobil was awarded the North Marakia offshore block, covering 4,847 square kilometers in water depths of 1-2 kilometers. In 2022, QatarEnergy purchased a 40% stake in the block, leaving ExxonMobil with 60% ownership. This earlier collaboration set the stage for the current agreement, showcasing the synergy between the two energy giants in maximizing the potential of Egypt’s offshore resources.
The strategic alliance between ExxonMobil and QatarEnergy is poised to significantly impact the energy landscape in Egypt and beyond, leveraging their combined expertise and resources to unlock opportunities in offshore exploration and production. As these projects progress, they are expected to contribute to the region’s energy security and economic growth, reinforcing the pivotal role of international partnerships in the global energy industry.
Zacks Ranks & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company (SM - Free Report) , Ecopetrol S.A. (EC - Free Report) and Hess Corporation (HES - Free Report) . While SM Energy and Ecopetrol sport a Zacks Rank #1 (Strong Buy), Hess carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.60 and $7.46, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Ecopetrol operates across various sections of the oil and gas industry, including the exploration, development, and production of oil and gas, refining, transportation, and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days. The Zacks Consensus Estimate for EC’s 2024 and 2025 EPS is pegged at $2.55 and $2.63, respectively.
Hess is a leading oil and natural gas exploration and production company. The company’s oil and gas proved reserves increased year over year last year by more than 8%.
The Zacks Consensus Estimate for HES’s 2024 and 2025 EPS is pegged at $9.17 and $11.15, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.