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ExxonMobil (XOM) Likely to Invest in Liza Oil Field in 2017

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According to a recent Bloomberg report, ExxonMobil Corporation (XOM - Free Report) is willing to authorize an investment for the Liza oil field by the end of next year. The field, which has 1.4 billion barrel oil, is located offshore Guyana.

According to media resources, ExxonMobil has awarded a contract to SBM Offshore NV for designing a floating production and storage vessel that will take care of the pumped oil from the offshore field. Investors should know that if ExxonMobil gets permission from the board to go ahead with the oil project then the first phase will likely produce 100,000 barrels of oil per day.

In the Liza field, ExxonMobil has an ownership interest of 45%. Hess Corporation (HES - Free Report) and CNOOC Limited (CEO - Free Report) have stakes of 30% and 25%, respectively.

Irving, TX-based ExxonMobil is the world’s largest publicly traded oil company. The firm is engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses.

The recent deal of OPEC & non-OPEC oil producers to curb crude production to restore crude prices is a huge positive for the company’s upstream business. This is because the company will be able to sell the commodity at higher prices.

However, over the last three months the company underperformed the Zacks categorized Oil & Gas-International Integrated industry. During the aforesaid period, shares of ExxonMobil gained 9.4%, while the broader industry improved by 13%. As a result the company carries a Zacks Rank #3 (Hold).

A better-ranked player in the energy sector is McDermott International, Inc. . The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

McDermott beat the Zacks Consensus Estimate in each of the last four quarters with an average earnings surprise of 474.04%.

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