ExxonMobil Corporation’s (XOM - Free Report) subsidiary ExxonMobil Exploration and Production Suriname B.V., along with partners, Hess Corporation (HES - Free Report) and Statoil ASA (STO - Free Report) , has inked a production sharing contract with Staatsolie Maatschappij Suriname N.V., the national oil company of Suriname for Block 59.
Located about 190 miles (305 kilometers) offshore Suriname’s capital city, Paramaribo, the block adds considerable acreage to ExxonMobil’s operated portfolio in the Guyana-Suriname Basin.
The block lies in water depths ranging from about 2,000 meters to 3,600 meters and spans 2.8 million acres, or 4,430 square miles. It shares a maritime border with Guyana, where ExxonMobil is the operator of three offshore blocks, including the outstanding Liza field discovered by in 2015.
The discovery in Suriname added another country to ExxonMobil’s upstream business portfolio. The company has investments all across South America. Subsequent to signing of the contract, the partners are planning to commence exploration activities, along with acquisitions and analysis of seismic data.
ExxonMobil, Hess and Statoil each holds an interest of 33.33% in the block. ExxonMobil is the operator.
The company is the world’s largest publicly traded oil company, which is engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacturing, and other energy-related businesses.
Following shale revolution, the area along the Gulf Coast boasts plentiful supply of oil and gas. ExxonMobil is expected to capitalize on the availability of cheap natural gas to manufacture chemicals asand energy efficient plastics for export. In other words, the company will cater to the growing demand for chemicals and refined fuels by taking advantage of the shale revolution. Hence, it is expected to generate significant cash flows from its downstream operations in the long run.
Shares of the company have lost 0.7% over the last three months compared with the Zacks categorized Oil & Gas – International Integrated industry’s decline of 2.7%.
ExxonMobil currently has a Zacks Rank #5 (Strong Sell). Another better-ranked stock in the same space includes Cheniere Energy Inc (LNG - Free Report) , which sporst a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cheniere Energy delivered a positive earnings surprise of 162.16% in the preceding quarter. The company beat estimates in one of the three trailing quarters with an average positive earnings surprise of 14.0%.
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