ExxonMobil Corporation XOM has commenced production at Hadrian South in deepwater Gulf of Mexico.
The company has tied back its facilities to the nearby Lucius project, thereby decreasing the requirement for additional infrastructure. This represents ExxonMobil’s deepest subsea tie-back in about a mile and a half of water. Per estimations, daily gross production from Hadrian South is expected to reach about 300 million cubic feet of gas and 3,000 barrels of liquids from two wells – Hadrian-2 and Hadrian-4.
Hadrian South, which is a subsea production system, has flowlines connected to Lucius truss spar. Lucius is operated by Anadarko Petroleum Corporation APC and was brought online in January.
ExxonMobil’s total Gulf of Mexico net production capacity has been augmented by over 45,000 oil-equivalent barrels per day due to the startup of Hadrian South and Lucius. ExxonMobil has a stake of 46.7% in Hadrian South and holds 23.3% interest in Lucius.
Hadrian South is situated nearly 230 miles offshore in the Keathley Canyon area of the Gulf of Mexico. It lies in about 7,650 feet of water. ExxonMobil is the operator of Hadrian South. Other co-venturers – Petrobras and EniSpA E – hold 23.3% and 30%, respectively.
Hadrian-2, which is the discovery well, was drilled in 2008. Hadrian-4 sidetrack, which is the appraisal well, was completed in 2009.
Hadrian South gives an additional boost to ExxonMobil’s Gulf of Mexico production operations. The company has been producing oil and gas in the region for more than six decades.
ExxonMobil is the world’s best run integrated oil company with a consistent record of high return on capital employed. As the largest publicly traded oil company, ExxonMobil has long been a core holding for investors seeking a defensive name with continued dividend growth.
ExxonMobil currently carries a Zacks Rank #3 (Hold).
A better-ranked stock from the oil and gas sector, Valero Energy Partners L.P. VLP, sports a Zacks Rank #1 (Strong Buy).
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