Exxon Mobil Corporation (XOM - Free Report) and Sonangol recently announced a memorandum of understanding (MOU) for exploring oil in Namibe Basin, off the coast of Angola.
Developments in this front reflect Angola’s initiatives to revive oil exploratory operations in the nation since it has been witnessing a steep decline in production. Notably, Angola is highly dependent on oil export as its government generates roughly 70% of revenues from the commodity, per Reuters.
The source added that Angola is the second-largest oil producing nations in Africa. Hence, for resurging operations in the potential offshore oil prospects, the nation’s state oil firm Sonangol is discussing with leading energy players to explore the country’s new blocks. In fact, to fast-track the process of resurgence and to discover oil and natural gas reserves, the country is considering an auction in 2019.
Included in the source, the recent MOU is paving the way for Angola to boost production since the country has been struggling due to volatile oil prices, drilling projects failures and bitter relationships with leading energy firms.
The agreement also increases ExxonMobil’s possibilities to increase production from Africa where the world’s largest publicly traded energy firm witnessed a decline in daily liquid production by more than 9% through the first nine months of 2018, as compared to the year-ago period.
Presently, ExxonMobil carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include TC PipeLines, LP (TCP - Free Report) , Cabot Oil & Gas Corporation (COG - Free Report) and Unit Corporation (UNT - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TC PipeLines beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 15.6%.
Cabot will likely post earnings growth of 113.2% and 59.9% through 2018 and 2019, respectively.
Unit Corp surpassed the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 21.3%.
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