U.S. energy behemoth
) and Rosneft - Russia's biggest oil producer - are steadily
progressing towards the construction of an LNG plant in the
Russian Far East. The duo has commenced a process for selecting a
contractor for undertaking the design and engineering work of the
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Over the period of 2013-2014, the duo plans to complete design
work, including selection of a liquefaction technology and
identification of major equipment requirements, to perform
engineering surveys, develop Front End Engineering and Design
(FEED), Russian Proyekt documentation for the LNG plant,
hydro-technical marine facilities, and a source gas pipeline.
Exxon Mobil's focus on the construction of an LNG plant in the
Russian Far East is a prudent move as offshore fields are located
in far off areas, inaccessible to the Russian gas supply system.
The LNG plant would allow the company to liquefy the natural gas
for export markets.
Exxon Mobil is the world's largest publicly traded oil company,
engaged in oil and natural gas exploration and production,
petroleum products refining and marketing, chemicals manufacture,
and other energy-related businesses. Approximately 83% of Exxon
Mobil's earnings come from its operations outside the U.S.
Exxon Mobil is one of the world's best-run integrated oil company
given its track record of superior returns on the capital
employed. The energy giant has long been a core holding for
investors seeking a defensive name with continued dividend
growth. Exxon Mobil is fairly active in its investment program.
The company plans to spend about $185 billion over the next five
years, up 29% from the last five-year period.
The capital expenditure covers as many as 21 important oil and
gas projects currently under the anvil and are estimated to
accumulate over 1 million net oil-equivalent barrels per day by
2016. It includes the Kearl Oil Sands development project in
Canada, four in West Africa and Kashagan Phase 1 in Kazakhstan.
Exxon is also engaged in a large liquefied natural gas project in
Papua New Guinea, which is expected to begin deliveries in 2014.
It will unearth more oil from the development of the Hebron oil
field, offshore the Canadian province of Newfoundland and
Labrador. The development will help in recovering over 700
million barrels of oil and the platform is expected to yield its
first oil towards the end of 2017.
Exxon Mobil holds a Zacks Rank #3 (Hold). However, in the near
term, stocks like
Abraxas Petroleum Corp.
Oiltanking Partners, L.P.
Seacor Holdings Inc.
) with Zacks Rank #1 (Strong Buy) are expected to outperform the
market over the next few months.