ExxonMobil (XOM, Financial) is making a number of operational improvements in order to strengthen its long-term outlook. For example, the company is through with its first well at Arkutun-Dagi in Russia at offshore Sakhalin. XOM got its first production in January 2015.
The company expect this well to produce early gross production of 90,000 barrels per day. This will result in total gross production of over 200,000 barrels per day at its Sakhalin-1. This is perhaps the last field oil project that was to be developed at its Sakhalin-1 resources. The other two oil field projects such as Chayvo and Odoptu were developed in 2005 and 2010 respectively.
Making strong progress
In addition, the company has successfully developed its Nabiye project in Canada. It had inspected steam generation at this project in December 2014 and found great reservoir in January. Exxon is expected to start production from its Nabiye project by the end of the first-quarter. The company forecasts approximately 40,000 barrels of oil per day from this project for the remaining year. Nabiye resources have already produced 150,000 barrels per day in 2014 and still remain a great production prospects for Exxon in the future.
Alongside, it is progressing well with its expansion of Kearl project in Canada. The company has completed the site construction activities of late. Further it is planning to ramp up commissioning activities in the first-quarter 2014. ExxonMobil expect this expansion project to result in extra production capacity to 220,000 barrels per day for coming decades.
Furthermore, ExxonMobil has acquired Abu Dhabi Upper Zakum offshore project. This project has one of the largest oil fields in the world. The company estimates the total resource of over 50 billion barrels at Abu Dhabi Upper Zakum project. This project is being explored with its joint partners and the company expects this project to deliver total gross production capacity to 750,000 barrels per day upon completion. The company is done away with the first production in November 2014. It is currently engaged with facility additions and drilling activities at this resource. XOM projects this resource to take about three years to generate targeted production.
A healthy exploration portfolio
ExxonMobil enjoys one of the most diversified exploration activities in the world. It is currently ramping up drilling activities at the Pelican South, wildcat well in the Neptune block offshore Romania. In Argentina, the company has productively drilled two wells and tested two additional horizontal wells in the Vaca Muerta. At present, the company is producing on an average 600 oil equivalent barrels per day from The La Invernada X-3 well in Argentina. Further, it remains focused with its active program to drill and test in 2015.
In addition, the company has recently added high potential acreage to its diversified exploration portfolio. It has expanded its presence in Canadian North Atlantic by 1.6 million gross acres and has captured three blocks in offshore Newfoundland and Labrador. These blocks are situated in the most proven oil-equivalent hydrocarbon basin with recent industry discoveries and displays great opportunity for Exxon ahead.
Also, it has added significant acreage in West Africa. It has acquired strong position that should help the company to have hands for Iberia to Angola in West Africa. Exxon has added 2.3 million gross acres in Cote d’lvoire. Moreover, it has recently completed PSC negotiation in Equatorial Guinea. This negotiation should enable the company to acquire an interest in another offshore block that covers 160,000 gross acres. Further, Exxon has jointly acquired licenses for of a proven hydrocarbon province in the United Kingdom for its producing fields. These licenses have granted the company the total coverage of 250,000 gross acres.
Conclusion
ExxonMobil has plenty of assets at its disposal with great exploration portfolio. This should possibly enhance its growth and deliver good returns to its shareholders in the coming years.
