ExxonMobil (XOM) Leads Bids in Guyana's Oil and Gas Auction
ExxonMobil Corporation XOM emerged as a key bidder in the inaugural auction of Guyana's offshore oil and gas sector. The South American nation Guyana received offers for eight out of the 14 offshore oil and gas exploration blocks, per a Reuters report.
Guyana’s president Irfaan Ali expressed satisfaction over the outcome of the auction, highlighting that the country received offers for eight out of 14 blocks amid global economic uncertainties, signifying a strong interest in Guyana's energy potential.
The country's Ministry of Natural Resources also confirmed bids from Hess Corporation HES and China's CNOOC as a group. Additionally, a group featuring TotalEnergies TTE, Qatar Energy and Malaysia's Petronas made its mark as a strong bidder, per the report.
Despite delays, interest in the auction surged, driven by the discovery of more than 11 billion barrels of recoverable oil and gas resources by the ExxonMobil-led group in recent years. This discovery signifies the enormous potential of Guyana's offshore reserves. Currently, the ExxonMobil-led consortium dominates the country's oil production. By opening up bidding to a wider range of players, Guyana aims to create a more balanced industry that benefits both the nation as well as international investors.
The country boasts a production and export rate of approximately 380,000 barrels of oil equivalent per day. With the involvement of industry leaders like ExxonMobil and its partners, Guyana aims to achieve an impressive 1.2 million barrels per day of output by 2027.
TotalEnergies has announced plans to explore a large oil project in Suriname's promising offshore area, adjacent to XOM's Guyanese Stabroek block.
Zacks Rank & Key Pick
ExxonMobil currently carries a Zack Rank #3 (Hold).
A better-ranked stock in the energy sector is USA Compression Partners, LP USAC, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
USA Compression Partners is one of the largest independent natural gas compression service providers across the United States in terms of fleet horsepower. USAC has witnessed an upward earnings estimate revision for 2024 in the past seven days.
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