ExxonMobil, Chevron Announce Major International Projects Amid Tight Tanker Market

ExxonMobil and its partners have awarded approximately $1.1 billion in engineering, procurement, and manufacturing contracts for a major liquefied natural gas (LNG) project in Mozambique, according to a report from Rigzone. The contracts are for the pre-FID (Final Investment Decision) Rovuma LNG project, which has a planned capacity of 18.6 million metric tons per annum.

In a separate development reported by Rigzone, Chevron and its partners have made a new oil discovery in Block 0 offshore Angola. The companies are considering a tieback development for the find, which would connect the new reservoir to existing production infrastructure.

These announcements underscore the ongoing global investment by the integrated majors who are also key operators in North Dakota's Bakken formation. Capital allocated to large-scale international projects in LNG and deepwater oil can compete for funding against onshore shale developments like those in the Williston Basin.

Meanwhile, the global crude shipping market is experiencing a significant tightening, according to Rigzone. Earnings for supertankers hauling crude from the Persian Gulf to Asia have surged to $510,000 per day, nearing a two-month high. This spike is driven by exporters seeking more vessels to move fuel via the Strait of Hormuz amid ongoing regional security uncertainties.

For Bakken operators, these concurrent developments highlight a complex macro environment. High tanker rates can increase the delivered cost of international crude to key markets, potentially improving the relative competitiveness of domestically produced Bakken crude. However, the massive capital commitments by ExxonMobil and Chevron abroad also illustrate the broad portfolio of investment opportunities these companies balance, with long-cycle international projects often vying for capital against shorter-cycle shale plays.