Yahoo Finance ExxonMobil (XOM) Strikes Oil With Likembe-01 Well Offshore Angola
ExxonMobil Corporation XOM, one of the world's leading oil companies, has struck oil at its Likembe-01 research well in Angola's offshore Block 15, marking a significant discovery after a two-year hiatus in the region. The news, reported by S&P Global Insights on Tuesday, highlights ExxonMobil's continued commitment to exploration and production activities in key offshore regions.
The Likembe-01 well, situated in the Kizomba B development area, was drilled between February and April and reached a maximum water depth of 3,013 meters. This discovery is particularly significant as it aligns with Angola's efforts to enhance crude output from existing oil and gas projects, aiming to counteract years of production declines.
Block 15, one of Angola's major oil-producing blocks, has seen decreasing output from its mature fields in recent years. In 2019, ExxonMobil signed a redevelopment deal with state-owned Sonangol to increase production from the license, which holds approximately 4 billion barrels of oil equivalent (boe) of recoverable resources.
While the discovery is still in its early stages, it could provide encouragement to Angolan officials seeking to boost output amid years of underinvestment, technical challenges, and insufficient exploration, leading to a decline in oil production. The government heavily relies on oil revenues, making efforts to boost production vital for economic stability.
ExxonMobil's 40,000 b/d Bavuca South-1 oil discovery in 2022 was the first since 2003 and signaled renewed potential in the area. The Likembe-01 discovery strengthens the potential of Block 15, potentially revitalizing Angola's oil sector, which plays a crucial role in the country's economy. This brings the total number of discoveries on Block 15 to 18.
ExxonMobil holds a 40% interest in the block, operating alongside partners Sonangol, Equinor from Norway, and Azule Energy, a joint venture between BP and Eni. Block 15 is among the three deepwater blocks held by ExxonMobil offshore Angola.
ExxonMobil's recent discoveries underscore its strategic focus on expanding its global oil exploration portfolio.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Marathon Petroleum Corporation MPC and Hess Corporation HES. While SM Energy and Marathon Petroleum sport a Zacks Rank #1 (Strong Buy), Hess carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments can create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 earnings per share (EPS) is pegged at $6.60. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Marathon Petroleum's acquisition of Andeavor has expanded its foothold in the Permian Basin, creating an enviable retail and marketing portfolio. MPC’s emphasis on operational excellence, safety, and environmental responsibility, coupled with investments in low-carbon initiatives, positions it well for sustainable growth and continued value creation for shareholders.
The Zacks Consensus Estimate for MPC’s 2024 EPS is pegged at $19.53. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of B.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $9.54 and $11.15, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
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