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ExxonMobil's (XOM) Seventh Guyana Oil Project Set for 2025
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ExxonMobil Corporation (XOM - Free Report) ), the U.S. energy giant, is poised to further expand its oil operations in Guyana with a development plan for its seventh offshore project, Hammerhead, per a Reuters report. The plan is set to arrive by the first quarter of 2025. Guyana's Natural Resources minister, Vickram Bharrat, made this announcement, signaling another major leap in the South American nation’s journey toward establishing itself as a key player in the global oil market.
Guyana has quickly emerged as the world’s fastest-growing oil nation over the past decade, with more than 30 significant discoveries off its coast. A consortium led by ExxonMobil currently produces approximately 650,000 barrels of oil per day (bpd) from three production platforms. The latest estimates from the consortium indicate that Guyana's recoverable oil and gas reserves have increased to 11.6 billion barrels from the previously stated "more than 11 billion barrels" (used since 2022).
The Hammerhead project is expected to significantly contribute to Guyana’s oil output, with the potential to add up to 180,000 bpd once the production begins in 2029. This would bring the nation’s total oil production to more than 1.4 million bpd, solidifying its position as a burgeoning oil powerhouse.
Bharrat noted that while the field development plan has not yet been received, it is anticipated in early 2025. The necessary diligence will follow, with the aim of issuing the required licenses once all conditions are met.
According to the report, the winners of the 2023 offshore bidding round for exploration and development blocks in Guyana are currently reviewing a production-sharing agreement. They are expected to pay the signing bonuses and finalize contracts soon, although no specific timeline has been provided.
Meanwhile, the license granted to Canada-incorporated CGX Energy and Frontera Energy for exploring the promising Corentyne offshore block has expired. The companies have faced challenges in securing a financial partner, complicating their development plans. Guyana's vice president Bharrat Jagdeo has expressed frustration with the group’s inability to advance the project, and no decision has yet been made on extending its license.
Similarly, Repsol’s exploration license for the Kanuku block expired last year, with no renewal granted. This has left ExxonMobil's consortium as the dominant force in Guyana’s oil sector, underscoring the critical importance of the upcoming Hammerhead project in shaping the country’s energy future.
The expected surge in production capacity will not only bolster Guyana’s economy but also reinforce ExxonMobil's leading position in this rapidly growing oil market.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
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 should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.53. 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 seven days.
MPLX derives stable fee-based revenues, driven by long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. 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.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.80. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
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ExxonMobil's (XOM) Seventh Guyana Oil Project Set for 2025
ExxonMobil Corporation (XOM - Free Report) ), the U.S. energy giant, is poised to further expand its oil operations in Guyana with a development plan for its seventh offshore project, Hammerhead, per a Reuters report. The plan is set to arrive by the first quarter of 2025. Guyana's Natural Resources minister, Vickram Bharrat, made this announcement, signaling another major leap in the South American nation’s journey toward establishing itself as a key player in the global oil market.
Guyana has quickly emerged as the world’s fastest-growing oil nation over the past decade, with more than 30 significant discoveries off its coast. A consortium led by ExxonMobil currently produces approximately 650,000 barrels of oil per day (bpd) from three production platforms. The latest estimates from the consortium indicate that Guyana's recoverable oil and gas reserves have increased to 11.6 billion barrels from the previously stated "more than 11 billion barrels" (used since 2022).
The Hammerhead project is expected to significantly contribute to Guyana’s oil output, with the potential to add up to 180,000 bpd once the production begins in 2029. This would bring the nation’s total oil production to more than 1.4 million bpd, solidifying its position as a burgeoning oil powerhouse.
Bharrat noted that while the field development plan has not yet been received, it is anticipated in early 2025. The necessary diligence will follow, with the aim of issuing the required licenses once all conditions are met.
According to the report, the winners of the 2023 offshore bidding round for exploration and development blocks in Guyana are currently reviewing a production-sharing agreement. They are expected to pay the signing bonuses and finalize contracts soon, although no specific timeline has been provided.
Meanwhile, the license granted to Canada-incorporated CGX Energy and Frontera Energy for exploring the promising Corentyne offshore block has expired. The companies have faced challenges in securing a financial partner, complicating their development plans. Guyana's vice president Bharrat Jagdeo has expressed frustration with the group’s inability to advance the project, and no decision has yet been made on extending its license.
Similarly, Repsol’s exploration license for the Kanuku block expired last year, with no renewal granted. This has left ExxonMobil's consortium as the dominant force in Guyana’s oil sector, underscoring the critical importance of the upcoming Hammerhead project in shaping the country’s energy future.
The expected surge in production capacity will not only bolster Guyana’s economy but also reinforce ExxonMobil's leading position in this rapidly growing oil market.
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 - Free Report) , MPLX LP (MPLX - Free Report) and The Williams Companies, Inc. (WMB - Free Report) . While SM Energy currently sports a Zacks Rank #1 (Strong Buy), MPLX and The Williams Companies carry a Zacks Rank #2 (Buy) each. 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 should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.53. 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 seven days.
MPLX derives stable fee-based revenues, driven by long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. 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.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.80. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.