Exxon Mobil Corporation (XOM - Free Report) wins Tita exploration block along with co-venturer Qatar Petroleum during Brazil’s 5th pre-salt bid round.
The recent award raises ExxonMobil holdings in Brazil’s pre-salt basins to about 2.3 million net acres by adding more than 71,500 net acres to the portfolio. The company became one of the largest acreage holders among international players in the country with more than two million net acres.
ExxonMobil, the operator of Tita exploration block, will have an interest of 64% in the block. Qatar Petroleum will hold the remaining 36%.
With exploratory drilling anticipated to begin by 2020, ExxonMobil will continue to advance with work related to regulatory requirements. The company plans to continue 3-D seismic coverage on the block through the rest of 2018 and into 2019.
The Carcara field, operated by Equinor, is projected to hold an estimated recoverable resource of more than 2 billion barrels of high-quality oil. Development is underway in the field.
The latest award enhances the company’s deepwater portfolio by adding highly-prospective acreage. The company’s expertise in deploying deepwater services, backed by partners, will develop world-class resources that will benefit Brazil for many years to come. ExxonMobil’s presence in Brazil dates back to more than 10 decades. Currently, the company has interests in 26 blocks offshore Brazil and operates 66% of its net acreage. It has a workforce of about 1,300 in the country across the upstream, chemical and business service center operations. Brazil is an important region in the company’s portfolio. It intends to develop more acreage with the aid of co-venturers and the government.
In the past year, ExxonMobil’s shares have increased 4.2% compared with the industry’s 12.2% rise.
Zacks Rank & Other Stocks to Consider
ExxonMobil currently carries a Zacks Rank #2 (Buy).
A few other top-ranked players in the same sector are Petroleo Brasileiro S.A. (PBR - Free Report) or Petrobras SA, Shell Midstream Partners, L.P (SHLX - Free Report) and CNX Resources Corporation (CNX - Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Petrobras is the largest integrated energy firm in Brazil and one of the major players in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.
Shell Midstream Partners is involved in owning, operating, developing and acquiring pipelines and other midstream assets. The partnership delivered an average positive earnings surprise of 7.9% in the trailing four quarters.
CNX Resources is an independent oil and gas exploration and production company. The company delivered a positive earnings surprise of 250.0% in the preceding quarter.
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