Exxon, Hess to Commence Crude Oil Export From Offshore Guyana

Exxon Mobil Corporation XOM and Hess Corporation HES are considering to export oil from Guyana, which is going to be the first-ever shipment of crude from the Latin American country, per Reuters. Reportedly, the energy majors aim to export the commodity by early 2020.

So far, a consortium that includes ExxonMobil and Hess has made 14 large discoveries from the offshore resources in Guyana, with resource potential of more than 6 billion oil-equivalent barrels. The consortium expects the offshore fields to be capable of producing daily volumes of 750,000 barrels. Investors should know that the world-class crude discoveries have made the country, with no history of oil production, a prime target for crude explorer.

The source revealed ExxonMobil’s plans for the shipment of two cargoes, each having a capacity to carry 1 million barrels of the commodity, from the Liza field in January. Notably, the deepwater oil field is located in the Stabroek Block, which is 200 kilometers off the coast of Guyana. Reportedly, Hess and Guyana’s government will be exporting significant volumes in February.

While ExxonMobil is likely to process the exported crude volumes at its refineries, Hess will sell the commodity at the spot market, per the source. Moreover, CNOOC Limited CEO, part of the consortium, will be reportedly exporting oil from Guyana to China, although the date has not been fixed.

Headquartered in Irving, TX, ExxonMobil, a leading integrated energy firm, currently carries a Zacks Rank #3 (Hold). Each of Hess and CNOOC carry a Zacks Rank #3. Meanwhile, a better-ranked stock in the energy space is Murphy USA Inc MUSA. Currently, the stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA beat the Zacks Consensus Estimate in three of the prior four quarters.

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