ExxonMobil acquires a stake in BM-S-8 block
ExxonMobil (XOM) has acquired stakes in the BM-S-8 block in offshore Brazil, which contains part of the promising Carcara oilfield. XOM has acquired a 36.5% stake in the BM-S-8 block from Equinor (EQNR), formerly known as Statoil.
The Carcara oil field is expected to hold 2.0 billion barrels of oil. The field is expected to begin production in 2023–2024. ExxonMobil and its partners began development activities in the Guanxuma prospect in the BM-S-8 block in April.
Equinor is the operator of the BM-S-8 block, holding a 36.5% interest. ExxonMobil now holds a 36.5% interest, Petrogal Brasil holds a 17.0% interest, and Barra Energia holds 10.0% interest in the block.
A part of the Carcara field is located in the North Carcara block. ExxonMobil holds a 40.0% stake in the North Carcara block. EQNR is also the operator for this block. Overall, ExxonMobil holds more than 2.1 million net acres in 24 blocks spread across offshore Brazil.
In the 15th round of bidding in Brazil, XOM won eight exploration blocks in the pre-salt basin. XOM has more than 2.0 billion barrels of discovered oil resources for near-term development in Brazil.
ExxonMobil’s upstream portfolio
ExxonMobil has a robust global upstream portfolio with a large resource base. Along with Brazil, the company has resources in the Permian Basin, Mozambique, Guyana, and Papua New Guinea. ExxonMobil expects around 25 projects worldwide to add 1.0 million barrels of oil equivalent barrels per day, net to XOM, by 2025.
For more on XOM’s upstream portfolio, you can refer to Is ExxonMobil’s Upstream Production Poised for Growth?
Peers’ upstream portfolios
Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) have also been witnessing growth in their upstream portfolios. Chevron’s upstream production is poised to grow with vast projects such as Gorgon and Wheatstone ramping up output. CVX expects 4.0%–7.0% yearly growth in its upstream production in 2018.
In the first quarter, BP (BP) started production at its mega Atoll Phase 1 project. BP has a strong upstream project pipeline. The company expects 0.9 MMboepd (million barrels of oil equivalent per day) of the new upstream production, net to BP, by 2021.
In the next part, let’s see how ExxonMobil stock has performed in the current quarter.