Exxon Mobil Corporation XOM, the U.S. oil and gas giant, has ramped up production at the Cepu Block in Indonesia, delivering an additional 30,000 barrels of oil per day. The country's energy ministry made an announcement confirming the increase in production. Prior to this, the Cepu Block was producing at a rate of 150,000 barrels per day (bpd).
The block will now produce 180,000 bpd, supporting Indonesia’s ambitions to increase oil production. The country had set its oil lifting target for 2024 at 605,000 barrels per day. However, the average production was 579,700 bpd between January and May, falling short of its target levels.
The Cepu Block alone accounts for approximately 25% of the nation's total oil production. ExxonMobil operates another project in Indonesia, namely the Banyu Urip project, in collaboration with the state-owned oil company, Pertamina. The Energy Ministry of Indonesia had previously stated that this project holds significant potential, with the capacity to produce up to 1 billion barrels of oil.
Indonesia is currently experiencing a decline in national oil production and seeking ways to increase output levels. The Indonesian government has set ambitious production targets of 1 million barrels per day of oil and 12 billion standard cubic feet of gas per day by 2030. This is aimed at offsetting declining production and strengthening the nation’s energy security.
XOM’s Zacks Rank & Key Picks
XOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Flotek Industries Inc. FTK, Subsea7 S.A. SUBCY and Oceaneering International OII. While both Flotek Industries and Subsea7 sport a Zacks Rank #1 (Strong Buy) at present, Oceaneering International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flotek Industries specializes in green chemistry, providing innovative solutions that reduce the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.
Subsea 7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry and provides engineering, construction, and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
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Exxon Mobil Corporation (XOM): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis Report Flotek Industries, Inc. (FTK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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