Exxon Mobil Corporation (XOM - Free Report) has won the Uirapuru exploration block with co-venturers Equinor ASA (EQNR - Free Report) and Petrogal Brasil during Brazil’s 4th pre-salt bid round.
Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) has chosen to exercise its right to enter in the consortium and will be the operator with an equity interest of 30%. Exxon Mobil, Equinor and Petrogal Brasil will have a holding of 28%, 28% and 14%, respectively.
In 2018, Exxon Mobil intends to acquire seismic coverage on more than 7,500 square miles. 3-D seismic survey work is already in progress on two blocks in the Northern Campos area offshore Brazil. The company is striving to get the required approvals to begin drilling activities.
Development plans are underway in the Carcara field, operated by Equinor, where drilling commenced in late April. The pre-salt Carcara field is estimated to hold premium oil reserves of more than 2 billion barrels.
The latest award boosts Exxon Mobil’s holding in Brazil’s pre-salt basins by adding net acres of about 88,900 to its portfolio. The company has a total exposure to more than 2.2 million net acres in the country, with interests in a total of 25 blocks offshore Brazil.
Exxon Mobil’s presence in Brazil dates back to more than 100 years. The company has a workforce of about 1,300 in the country across its upstream, chemical and business service center operations. Brazil forms an important region in the company’s portfolio where it intends to develop more acreage with the aid of co-venturers and the government.
In the past three months, Exxon Mobil’s shares have gained 11.8% compared with the industry’s 11.4% rise.
Zacks Rank & Key Pick
Exxon Mobil currently carries a Zacks Rank #3 (Hold).
A better-ranked player from the same industry is Anadarko Petroleum Corp (APC - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Anadarko Petroleum is one of the world's largest independent oil and gas exploration and production companies. It pulled off an average positive earnings surprise of 89.24% in the last four quarters.
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