ExxonMobil To Increase Production From Offshore Abu Dhabi

Integrated oil and gas company, ExxonMobil Corporation's (NYSE:XOM) subsidiary ExxonMobil Abu Dhabi Offshore Petroleum Co recently decided to boost production capacity at the Upper Zakum oil field, located off the coast of Abu Dhabi, to 1 million barrels per day (bpd) by 2024. The previous target was to raise production capacity to 750,000 bpd by 2017-18.

The operator of the oil field is Abu Dhabi National Oil Co with 60% interest. ExxonMobil has 28% stake while Japan’s Inpex Corp has the rest. The oilfield has estimated crude reserves of 50 billion barrels.

The redevelopment program of the Upper Zakum field, the second largest offshore crude field, includes four artificial islands, with at least 1,000 well slots. The depth of the wells is expected to be around 35,000 feet. It also includes 2,500 personnel's permanent arrangements.

Price Performance

ExxonMobil has lost 10% of its value year to date against the 3.6% rise witnessed by the industry it belongs to.

About ExxonMobil

Irving, TX-based ExxonMobil has a leading position in the energy industry owing to the size and diversity of its asset base, both in terms of business mix and geographical footprint. With a stable cash position, the company’s balance sheet is one of the best in the industry, reflecting declining debt load over the first nine months of 2017. The company has been investing heavily in its extensive refining businesses, which will likely help it counter volatile upstream businesses. In fact, higher margins from the lucrative refinery operations primarily supported ExxonMobil’s strong third-quarter 2017 results.

Zacks Rank and Other Stocks to Consider

ExxonMobil sports a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks in the oil and energy sector include ConocoPhillips (NYSE:COP) , Denbury Resources Inc. (NYSE:DNR) and Northern Oil and Gas, Inc. (NYSE:NOG) . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston, TX-based ConocoPhillips is a major global exploration and production company. The company’s sales for 2017 are expected to increase 24.4% year over year. The company delivered an average positive earnings surprise of 152.3% in the last four quarters.

Plano, TX-based Denbury Resources is an oil and gas company. The company’s sales for the fourth quarter of 2017 are expected to increase 4.8% year over year. The company delivered an average positive earnings surprise of 125% in the last four quarters.

Minnetonka, MN -based Northern Oil and Gas is an independent energy company. The company’s sales for the fourth quarter of 2017 are expected to increase 44.8% year over year. The company delivered an average positive earnings surprise of 175% in the last four quarters.

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