Exxon Taps TechnipFMC For Subsea Gear In Guyana's $12.7B Whiptail Project
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corporation awarded a large contract to TechnipFMC for subsea production systems for the Whiptail project in Guyana's Stabroek Block. The contract, valued between $500 million and $1 billion, includes 48 subsea trees, 12 manifolds, and associated equipment. This project, with an estimated resource base of over 850 million barrels of oil, is part of a $12.7 billion investment decision made by Exxon and Hess Corporation. Investors can gain exposure to Exxon through the Energy Select Sector SPDR Fund and iShares U.S. Energy ETF.
April 16, 2024 | 3:31 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
TechnipFMC's receipt of a large contract from Exxon for the Whiptail project in Guyana represents a significant business win, likely to positively impact its stock due to the contract's size and strategic importance.
Securing a contract valued between $500 million and $1 billion for the Whiptail project not only boosts TechnipFMC's order book but also strengthens its position in the industry, likely leading to a positive short-term stock reaction.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
Hess Corporation's involvement in the final investment decision for the Whiptail development offshore Guyana, alongside Exxon, underscores its strategic investment in significant oil resources, potentially enhancing its stock value.
Hess Corporation's participation in a project with over 850 million barrels of oil resource base is a major strategic move, likely to be viewed positively by investors and have a favorable impact on its stock in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares U.S. Energy ETF, with Exxon as a key component, could experience positive effects from Exxon's investment in the Whiptail project, indicating potential growth in the energy sector.
Given Exxon's role in the IYE ETF, the company's substantial investment in the Whiptail project and the potential for increased oil production could lead to positive sentiment and performance for the ETF in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The Energy Select Sector SPDR Fund, which includes Exxon as a component, may see positive movement due to Exxon's significant investment in the Whiptail project, reflecting the potential growth in the energy sector.
As Exxon is a significant component of the XLE ETF, the company's strategic investments and potential growth from the Whiptail project are likely to positively influence the ETF's performance in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Exxon Mobil Corporation's significant investment in the Whiptail project and the contract awarded to TechnipFMC highlight its commitment to expanding its operations in Guyana, potentially boosting investor confidence.
The contract and investment in the Whiptail project demonstrate Exxon's strategic expansion in a key area, likely to positively influence its stock in the short term due to the scale and potential profitability of the project.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90