Exxon Mobil Corporation XOM has withdrawn from the bidding process to acquire a 40% stake in Namibia's offshore Mopane oil discovery from Galp Energia, per a Reuters report. The decision arrived after more than 12 major oil companies, including ExxonMobil, Shell plc and Brazil’s Petrobras, expressed interest in the block.

Galp's stake in the Mopane block has drawn attention due to its estimated reserves of 10 billion barrels of oil and gas equivalent. The block could be worth more than $10 billion, making it a significant asset in Namibia's emerging oil industry. The country has seen a surge in offshore discoveries in recent years, with companies like Shell and TotalEnergies leading the charge.

According to sources cited by Reuters, the reasons behind ExxonMobil’s decision to withdraw from the bidding process remain undisclosed. Other contenders are, however, still in discussions with Galp over the potential sale. Notably, Galp has also proposed the potential buyer to take on the operational responsibility for the field, adding another layer of complexity to the transaction.

Neither ExxonMobil nor Galp has made any public comment on the situation.

The Mopane discovery is part of a series of high-profile finds that could transform Namibia into a significant player in the global oil market. These discoveries have generated optimism about the country's future as a major oil producer, drawing interest from energy giants around the world. With ExxonMobil now out of the race, it remains to be seen which company will secure the coveted stake in the Mopane block.

XOM’s Zacks Rank & Key Picks

ExxonMobil currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like MPLX LP MPLX, Core Laboratories Inc. CLB and VAALCO Energy, Inc. EGY. While MPLX currently sports a Zacks Rank #1 (Strong Buy), Core Laboratories and VAALCO Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.

The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.29. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.