Exxon Mobil Corporation (XOM - Free Report) and its co-venturers have commenced marketing activities of the Rovuma LNG project.
The Rovuma LNG project will generate, liquefy and sell natural gas from the fields of the Area 4 block, offshore Mozambique. Significant progress has been made on marketing. Currently, the parties are in talks to bind sales and purchase agreements for the Rovuma LNG with some affiliated buyers of the Area 4. These commitments will help the co-venturers reach a final investment decision, which is expected in 2019.
The Mamba reservoirs in Area 4 will be developed in the initial phase of the project. These reservoirs will provide consistent and cost-efficient energy to the consumers as well as generate long-term economic value for the people of Mozambique and the co-venturers.
ExxonMobil will be responsible for the construction and operation of liquefaction trains and associated onshore facilities for the Rovuma LNG project. Eni SpA (E - Free Report) , one of the co-venturers, will direct upstream developments and operations. Corresponding with the marketing, the parties are also progressing with the financing activities and working with the government to accelerate approval of the project.
In 2017, the final investment decision on Coral South FLNG was made. Thereafter, the co-venturers have been working jointly to construct the remaining gas fields which will provide for the Rovuma LNG trains, leveraging on the expertise of all the parties.
About Area 4
Located offshore of the Cabo Delgado province of northern Mozambique, the Area 4 concession is operated by Mozambique Rovuma Venture S.p.A., owned by ExxonMobil, Eni and CNODC Dutch Cooperatief U.A, holding 70% interest along with Galp Energia Rovuma B.V., KG Mozambique Ltd and Empresa Nacional de Hidrocarbonetos E.P., each holding a 10% interest.
In the past three months, ExxonMobil’s shares have gained 12.3% compared with the industry’s 9.2% rise.
Zacks Rank & Key Picks
ExxonMobil currently has a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Occidental Petroleum Corporation (OXY - Free Report) and China Petroleum and Chemical Corporation (SNP - Free Report) , also known as Sinopec. These stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum is an international oil and gas exploration and production company. It pulled off an average positive earnings surprise of 30.2% in the last four quarters.
Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the last four quarters.
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