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ExxonMobil Awaits Government's Nod for Rovuma LNG Project

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Exxon Mobil Corporation (XOM - Free Report) along with partners has submitted development plan for the first phase of the Rovuma LNG project to the government of Mozambique.

The Rovuma LNG project will yield, liquefy and sell natural gas from the Mamba fields located in the Area 4 block offshore Mozambique. The plan outlines the design and construction of two proposed liquefied natural gas trains which will each produce 7.6 million tons of LNG per year, which will be undertaken by ExxonMobil.

Eni SpA (E - Free Report) — on behalf of the joint venture — will manage construction and operation of upstream facilities. During the progress of the project, Mozambique Rovuma Venture will try to create more jobs locally and hire suppliers based in the country.

The joint venture partners of Area 4 await a final investment decision in 2019. LNG production from the project is anticipated to begin in 2024. The partners are working on marketing activities, which is in sync with the plan approval process. Talks related to the sales and purchase agreements are in progress.

Mozambique Rovuma Venture S.p.A. — the operator of Rovuma LNG — is an incorporated joint venture owned by ExxonMobil, Eni and CNPC. It has an interest of 70% in the Area 4 concession. Other partners include Galp, KOGAS and Empresa Nacional de Hidrocarbonetos E.P. (ENH), all holding a 10% interest.

About Area 4

Located offshore Cabo Delgado province of northern Mozambique, the Area 4 concession is operated by Mozambique Rovuma Venture S.p.A. and owned by ExxonMobil, Eni as well as CNODC Dutch Cooperatief U.A, holding 70% interest. Other partners include Galp Energia Rovuma B.V., KG Mozambique Ltd and Empresa Nacional de Hidrocarbonetos E.P., each holding a 10% interest. Rovuma gas field is projected to hold about 75 trillion cubic feet (Tcf) of recoverable natural gas.

Price Performance

In the past three months, ExxonMobil’s shares have gained 7.6% compared with the industry’s rise of 4.1%.



 

Zacks Rank & Stocks to Consider

ExxonMobil currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Occidental Petroleum Corporation (OXY - Free Report) and China Petroleum & Chemical Corporation (SNP - Free Report) or Sinopec. All the 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 trailing four quarters.

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