Exxon Mobil Corporation’s XOM subsidiary, ExxonMobil Guyana, has acquired the floating production, storage, and offloading (FPSO) unit, Liza Destiny, from SBM Offshore. The purchase, valued at $535 million, was finalized ahead of the FPSO's maximum lease term, originally set to expire in December 2029. This strategic move positions ExxonMobil as the unit's owner, while SBM Offshore remains responsible for its operations and maintenance through 2033.
The transaction includes a $535 million cash consideration, enabling SBM Offshore to allocate $405 million toward repaying project financing debt. This repayment will notably reduce SBM Offshore's net debt position.
Since its deployment in December 2019, the FPSO Liza Destiny has played a crucial role in ExxonMobil’s operations in the Stabroek Block, offshore Guyana. In 2023, the unit began operating under a collaborative model that leverages the expertise of both SBM Offshore and ExxonMobil to ensure high operational performance.
The Liza Destiny FPSO, converted from a very large crude carrier (VLCC), is engineered for robust production capabilities. It can process up to 120,000 barrels of oil per day, treat approximately 170 million cubic feet of associated gas daily and inject up to 200,000 barrels of water per day. The vessel also offers a storage capacity of 1.6 million barrels, reflecting its vital role in ExxonMobil's offshore Guyana operations.
XOM’s decision to assume ownership of the Liza Destiny FPSO highlights its commitment to optimizing its long-term operations in the prolific Stabroek Block. This move is poised to enhance the company’s ability to manage resources and costs while maintaining exceptional production efficiency in the region.
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
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