Exxon Mobil Corporation XOM, the U.S.-based oil and gas giant, has awarded a marine warranty survey (MWS) service contract to New Wave Offshore Energy, a marine advisory firm. New Wave Offshore Energy will provide MWS services for ExxonMobil Guyana’s Whiptail development. The Whiptail project is XOM’s sixth deepwater development located in the Starbroek Block offshore Guyana.
New Wave Offshore Energy’s Scope of Work
The new contract for providing MWS services to ExxonMobil’s Whiptail project represents a major achievement for New Wave Offshore Energy as it covers risk management services and safety supervision to the giant Whiptail project, which is valued at $12.7 billion. The company's scope of work includes offering marine warranty services over several phases of the development project. This involves ensuring that all the transportation and installation operations are being carried out safely.
Additionally, New Wave is expected to independently review the operations to make sure that the agreed-upon contractual obligations related to the deepwater oilfield development are met. The company shall also be offering its knowledge and expertise to enhance the project’s efficiency.
After taking a final investment decision on the Whiptail oilfield in the Starbroek Block, XOM tapped SBM Offshore to take on the front-end engineering and design work for a floating production, storage and offloading vessel specifically designed for this development.
Overview of the Whiptail Project
The Whiptail project involves the extraction of oil and gas from three key fields – the Whiptail, Pinktail and Tilapia fields. The water depth at the site is approximately 2,000 meters. Additionally, the project may consider developing other potential resources in proximity to the key fields, if they are commercially viable and end up being feasible to develop with the existing infrastructure.
XOM’s Zacks Rank and Key Picks
XOM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Oceaneering International OII and NextDecade Corporation NEXT. Archrock currently sports a Zacks Rank #1 (Strong Buy), while Oceaneering International and NextDecade carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. OII's proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. The demand for LNG as a clean burning fuel continues to grow and the commodity is expected to play a crucial role in the energy transition process. The company’s focus on expanding its liquefaction capacity is expected to enhance its position in the rapidly growing global LNG market, enabling it to meet the rising demand for natural gas.
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