Royal Dutch Shell PLC RDS.A recently announced that in the auction conducted by Guyana, it has succeeded in acquiring the first three deliveries of the government's share of the country's crude oil production. With this deal, Shell will expand its footprint in the oil market of Guyana, thereby spurring growth in the Latin American country’s oil marketing space.
A total of nine bidders placed their bids. However, Shell Western Supply and Trading was finally chosen as the most successful bidder. Apart from Shell's competitive pricing, the wide reach of its trading arm, Latin American footprint and "willingness to share critical refinery information" with the department, tilted the scale in the supermajor’s favour.
Exxon Mobil Corp. XOM together with partners Hess Corp. HES and China’s CNOOC Ltd. CEO began its crude oil production in the Liza oil field, last week. Located in the Stabroek Block, Liza is a deepwater discovery, roughly 190 kilometers offshore Guyana and 1500-1900 meters under water. All of them successfully discovered more than six billion barrels of recoverable oil and gas in this offshore block.
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Exxon-led consortium’s oil production, offshore the South American country, helped Guyana officially secure a dominant position on the oil-producing nations’ list.
Guyana’s first cargoes’ sale, fixed on a Dated Brent price basis, is set to experience the first lifting in February next year while the completion of the three cargoes is anticipated by mid-2020.This Exxon-operated project, which owns 45% interest in the consortium, is said to directly lift the first cargoes while Hess with a 30% stake is scheduled to lift a cargo, later that month.
The Zacks Rank #3 (Hold) Shell is a global group of energy and petrochemical companies. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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