Exxon Mobil Corporation XOM is planning a major expansion of its offshore drilling activities in the Stabroek Block and has applied to the Environmental Protection Agency (“EPA”) in Guyana for a new appraisal program in the block. The Stabroek Block is considered one of the world's largest oil discoveries made in recent years. ExxonMobil is already advancing several developments at the Stabroek Block, including Uaru, Whiptail and Hammerhead.
The program involves drilling up to 35 exploration and appraisal wells across four prospect areas offshore Guyana. The drilling locations, however, have not yet been finalized. The exploration wells will help XOM discover new oil and gas deposits in this frontier, while the appraisal wells determine their size and commercial viability. The drilling campaign is expected to start in 2028 and continue through the end of 2033, alongside other drilling programs in the block.
Guyana’s EPA has stated that the exploration and appraisal program is not expected to have significant environmental impacts on its own. However, a cumulative impact assessment is required to assess the effects of all the drilling activities taking place in the region. The Stabroek Block offshore Guyana is one of XOM's most successful discoveries, and the company is continuously working to increase its production from the block. Notably, in the first quarter, ExxonMobil reached record production levels above 900,000 barrels per day in Guyana. Its fifth floating production, offloading and storage (FPSO) vessel in the country is slated to achieve first oil in 2026, expanding its daily production capacity.
XOM’s Zacks Rank and Key Picks
XOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are W&T Offshore WTI, Galp Energia SGPS SA GLPEY and FuelCell Energy FCEL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its future production prospects and is expected to enhance its revenues.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to expand its global presence with the potential to become a significant oil producer in the region. It is also involved in refining and marketing of oil products and natural gas marketing and sales.
FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
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Exxon Mobil Corporation (XOM): Free Stock Analysis Report
W&T Offshore, Inc. (WTI): Free Stock Analysis Report
FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report
Galp Energia SGPS SA (GLPEY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).