Exxon Mobil Corp (XOM), Equinor and Petrogal Brasil said in a joint statement on Tuesday that they would begin developing an $8 billion Bacalhau oil field in Brazil.
The field is to be operated by Norway’s Equinor, the companies said, while first oil from the site is expected in 2024.
“Estimated recoverable reserves for the first phase are more than one billion barrels of oil,” Arne Sigve Nylund, Equinor’s Executive Vice President, said in a press release.
Exxon Mobil shares closed higher for the fourth time in the past ten trading sessions in New York on Tuesday. It has also been the sharpest single-session gain since March 5th. The stock went up 3.58% ($2.09) to $60.46, after touching an intraday high at $60.68. The latter has been a price level not seen since May 18th ($62.30).
Shares of Exxon Mobil Corporation have risen 46.68% so far in 2021 compared with an 11.87% gain for the benchmark index, S&P 500 (SPX).
In 2020, Exxon Mobil Corp’s stock went down 40.93%, thus, it underperformed the S&P 500, which registered a 16.26% gain.
Equinor and Exxon each own a 40% stake in the Bacalhau oil field, while the remaining 20% are held by Petrogal Brasil. State-owned firm Pre-sal Petroleo SA also participates in the project through a production sharing agreement.
Analyst stock price forecast and recommendation
According to TipRanks, at least 8 out of 16 surveyed investment analysts had rated Exxon Mobil Corp’s stock as “Buy”, while 7 – as “Hold”. The median price target on the stock stands at $65.93.