ExxonMobil (XOM) Eyes Q1 2024 FID for Whiptail Project, Guyana
ExxonMobil Corporation XOM, the largest U.S. oil company, is on track to begin its sixth oil project in Guyana, with a final investment decision (FID) anticipated by the first quarter of 2024, as revealed by the company's country chief, Alistair Routledge, during a press conference on Tuesday.
ExxonMobil, along with partners Hess Corporation HES and China's CNOOC, unveiled a $12.9-billion proposal in August for the development of the Whiptail offshore oil project. This comprehensive plan was formally submitted to the government of Guyana on Oct 13, as confirmed by Routledge.
The project includes the construction of a floating production platform, slated to commence operations in late 2027. This strategic move is projected to enhance the XOM-led consortium's oil output in Guyana to more than 1.2 million barrels per day (bpd).
In addition to this significant development, Routledge revealed that ExxonMobil is set to kick off production at its third Floating Production, Storage, and Offloading (FPSO) vessel at the Payara project. This production is scheduled for completion by 2023-end, promising to substantially augment the current output to approximately 600,000 barrels per day in the early months of 2024.
Currently, ExxonMobil, in collaboration with partners HES and CNOOC, commands a production capacity of more than 380,000 bpd through two vessels. The consortium has ambitions to potentially cultivate up to 10 offshore projects within the country.
The impending Whiptail project represents a significant stride in XOM's mission to establish Guyana as a significant player in the global oil industry.
Zacks Rank & Other Key Picks
ExxonMobil currently carries a Zack Rank #2 (Buy).
A couple of other top-ranked players in the energy sector are Matador Resources Company MTDR currently sporting a Zacks Rank #1 (Strong Buy), and Pioneer Natural Resources Company PXD, carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed an upward earnings estimate revision for 2024 over the past seven days.
Pioneer Natural Resources is a leading upstream energy firm with primary operations in the Permian basin, which is among the lucrative oil shale plays in the United States with fewer risks. Its total holding of more than 1 million net acres in the Permian basin will support long-term oil production growth. PXD has witnessed an upward earnings estimate revision for 2023 in the past seven days.
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