Exxon Mobil Corporation
) started the development of the Julia oil field in the Gulf of
Mexico. Per company estimates this would bore a hole of over $4
billion in capital costs. The Julia field, which was discovered
in 2007, is expected to contain reserves of approximately 6
The company expects to start production at the oil field in
2016. Exxon is targeting to start with daily production of 34,000
barrels of oil. To speed up things the company has already
completed the project front end engineering design of the
project. It has also placed the requisite engineering,
procurement and construction contracts.
The Julia field has five leases in the ultra-deepwater Walker
Ridge area of the Gulf of Mexico, which is 265 miles southwest of
New Orleans. The resource is located 30,000 feet below the
surface of the ocean. The ownership of the Julia unit is equally
shared between the operator, ExxonMobil and
). The oil field includes six wells with subsea tie-backs to
) production facility Jack & St. Malo.
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
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 further unearth more oil from the development of 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, a stock like
) with a Zacks Rank #1 is expected to outperform the market over
the next few months.
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