ExxonMobil Brings Fourth FPSO Online, Boosts Stabroek Block Output

Exxon Mobil Corporation XOM, the U.S.-based oil and gas major, announced the start of production at the Yellowtail development in the prolific Stabroek Block, offshore Guyana. The company mentioned that the fourth floating production storage and offloading vessel (FPSO), named One Guyana, has begun production at the Starbroek Block, raising the total capacity from the field to more than 900,000 barrels of oil per day.

The One Guyana floating vessel is the largest FPSO in the Stabroek Block, with a production capacity of approximately 250,000 barrels per day. The FPSO can store up to 2 million barrels of crude. Other FPSOs operating in the Stabroek block include the Destiny, Unity and Prosperity FPSOs. ExxonMobil mentioned that the One Guyana FPSO has begun operations four months ahead of schedule.

The Stabroek Block was operated by a consortium consisting of ExxonMobil, Hess Corporation and China’s CNOOC. Hess was acquired by energy major Chevron Corporation, which gave Chevron access to the vast reserves at the Starbroek Block, offshore Guyana.  According to XOM, the crude oil produced using One Guyana shall be marketed as “Golden Arrowhead" crude.

The start of production from the fourth FPSO marks a major milestone for ExxonMobil and its partners in the Stabroek Block. The One Guyana FPSO significantly boosts production at the field, which pushes the joint venture partners closer to their goal of achieving a production capacity of 1.7 million barrels of oil equivalent per day by 2030. The Stabroek Block has emerged as one of the most prolific hydrocarbon-producing regions in Latin America, driving strong profits for XOM and its partners.

XOM’s Zacks Rank & Key Picks

Currently, XOM carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Antero Midstream Corporation AM, Galp Energia SGPS SA GLPEY and Enbridge Inc. ENB, each carrying a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks Rank #1(Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility.

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This article originally published on Zacks Investment Research (zacks.com).

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