ExxonMobil Finds More Hydrocarbons in Angola's Offshore Block 15

ExxonMobil Holdings Corporation XOM, a U.S. oil and gas giant, has made a new oil and gas discovery offshore Angola at the Vicango East-01 exploration well. The well is located approximately 370 kilometers northwest of Luanda, the capital city of Angola. The exploration well was drilled to a depth of 3,085 feet using the Valaris DS-9 drillship. The oil discovery was made in Block 15 offshore Angola, marking the 20th find in the block over the past 30 years.

The exploratory well has found approximately 82 feet of high-quality sandstone containing hydrocarbons. Angola’s National Oil, Gas and Biofuels Agency, along with the other partners in Block 15, highlighted that the sandstone had a porosity of 22%, indicating favorable reservoir quality and the potential to hold hydrocarbons. The prolific Block 15 is a major oil and gas resource for Angola, having already produced more than 2.7 billion barrels of oil over the past 30 years. The new hydrocarbon find demonstrates the region’s exploration potential.

ExxonMobil has a successful history of operating in Block 15 for more than 20 years, and the company believes that the offshore block still has significant untapped potential. XOM’s continued exploration efforts underscore its commitment to developing Angola’s offshore resources and expanding its long-term production potential. Furthermore, new discoveries around existing infrastructure could lower the cost and development timelines, accelerating future production.

ExxonMobil operates Block 15, holding a 36% interest in the block through its affiliate Esso Exploration Angola (Block 15) Limited. Azule Angola Limited and Azule Angola BV are partners in the block. The other partners include Equinor Angola Block 15, with a 12% stake, and Sonangol E&P, with 10%.

Angola’s National Oil, Gas and Biofuels Agency is the concessionaire of Block 15. The regulatory agency attributed the ongoing exploration efforts in Block 15 partly to changes in the country’s legal and fiscal policy frameworks. These include, among other policies, an extension of the Block 15 license until 2032, giving XOM more time to explore and develop resources in the block. Since ExxonMobil believes that Block 15 still has more resources that can be discovered, the extended license and more favorable regulatory and fiscal terms provide XOM with additional time and flexibility to pursue further exploration and development opportunities in the block.

XOM’s Zacks Rank & Key Picks

XOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Par Pacific Holdings PARR, Valero Energy VLO and Galp Energia SGPS SA GLPEY. While Par Pacific and Valero sport a Zacks Rank #1 (Strong Buy) each, Galp Energia carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.

Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. VLO’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It is engaged in the refining and marketing of oil products and gas, as well as marketing and sales.

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ExxonMobil Holdings Corporation (XOM): Free Stock Analysis Report

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