Exxon Mobil Corporation (XOM - Free Report) recently announced that the company has commenced drilling the Haimara-1 exploration well, located 31 kilometres east of the company’s Pluma-1 discovery in the southeast Stabroek Block, offshore Guyana. It is one of the two wells to be drilled this month, as planned by the company. At the site, the company is using a harsh environment DP Class 3 drillship, namely Stena Carron, which can drill up to a water depth of 10,000 feet.
ExxonMobil has plans to use Noble Corporation plc’s (NE - Free Report) Noble Tom Madden drillship for the Tilapia-1 well, which is the second one slated to be drilled this month. The well is located in the Turbot region. The commencement of the drilling of Haimara-1 well on schedule is a sign of ExxonMobil’s confidence in the region, which recently witnessed an unfavorable event pertaining to the Venezuelan navy. The company reported that its activities offshore Guyana were not affected by the event.
Notably, the Stabroek Block is expected to accommodate at least five floating, production, storage and offloading (FPSO) vessels, with oil production capacity of more than 750,000 barrels per day, by 2025.
Esso Exploration and Production Guyana Limited, a subsidiary of ExxonMobil, is the operator in the Stabroek Block with 45% stake. The respective subsidiaries of Hess Corporation (HES - Free Report) and CNOOC Limited (CEO - Free Report) have 30% and 25% interest in the block.
The world’s biggest publicly-traded energy company also stated that its Liza Phase 1 development has reached its peak execution phase, well ahead of its schedule in early 2020. The company is using Noble Bob Douglas drillship in the field. It intends to start pipe-laying activities in the field in spring. The Liza Destiny FPSO vessel to be used in the field — currently in Singapore — will set off for Guyana in third-quarter 2019. First oil is expected from the Liza Phase 1 development in early-2020. Moreover, the company expects the Liza Phase 2 to commence production within mid-2022.
Similar to ExxonMobil’s 4-D campaign in the Liza field in 2017, the company intends to deploy a seismic vessel in the Turbot region offshore Guyana for acquiring 4-D seismic data.
Price Performance & Zacks Rank
ExxonMobil has lost 18.3% in the past year compared with 9.8% collective decline of the industry it belongs to. The company currently has a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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