) recently contracted Seawolf Oil Services Ltd. - a Nigerian
offshore drilling company - for the supply of a rig. The contract
is valued at 22 billion naira ($140 million).
Per the deal, Seawolf will supply one of its three rigs, 'JU
Oritsetimeyin' to ExxonMobil. The two-year contract will commence
from the third quarter of 2013.
Oritsetimeyin is a 300ft independent cantilever jack-up rig and is
expected to meet ExxonMobil's safety, environment and operational
requirements. The rig was built in 2009 and drilled six oil wells
for Total Exploration and Production Nigeria Limited.
The deal reflects Exxon's commitment toward supporting indigenous
businesses, which have the necessary infrastructure and operational
strength to overcome the challenges posed by the offshore oil
business. The company's strategy also lends support to the Nigerian
government's initiative of increasing indigenous players in the
market, which has traditionally been dominated by international oil
and gas majors.
Irving, Texas-based ExxonMobil Corporation 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. The company divides its operations into three segments:
Upstream, Downstream, and Chemicals.
The company boasts diversified operations across the world with
several new projects expected to come on line through 2013. While
Exxon functions in all corners of the globe, the main areas of
focus for the coming years include the U.S., Canada, Kazakhstan,
West Africa, Australia, Russia, Angola and Iraq for new volumes.
Recently, ExxonMobil entered into an agreement to expand in the
Bakken region with
Denbury Resources Inc.
) to acquire all of the latter's Bakken shale assets.
ExxonMobil carries a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months. Longer term, we
maintain our Neutral recommendation on the stock.
DENBURY RES INC (DNR): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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