Chevron Wins Exploration Rights Off Myanmar - Analyst Blog

Myanmar subsidiary of the U.S. energy behemoth
Chevron Corporation

(
CVX

) has been awarded exploration rights in Block A5 in the Rakhine
basin, off the coast of Myanmar.

The affiliate, Unocal Myanmar Offshore Co. Ltd, will have a 99%
stake in the block and act as the operator. The remaining
interest will be held by a Myanmar-based firm, Royal Marine
Engineering. The block is situated about 125 miles northwest of
Yangon and spread across 2.6 million acres.

Chevron Asia Pacific Exploration and Production Company has a
long working history in Myanmar and expects that winning this bid
would give it additional opportunity to help with the nation's
energy sector development.

Other holdings of Chevron's subsidiaries in the region include a
28.3% stake in a production sharing agreement. The agreement
involves the generation of natural gas from the Yadana and Sein
fields, in Blocks M5 and M6, in the Andaman Sea. Additionally,
Chevron has a 28.3% interest in a pipeline company that
transports natural gas to support power plants in Thailand.

San Ramon, California-based Chevron is one of the largest
publicly traded oil and gas company in the world, based on proved
reserves. It is engaged in oil and gas exploration and
production, refining and marketing of petroleum products,
manufacturing of chemicals, and other energy-related businesses.

Chevron has an impressive business model. Its current oil and gas
development project pipeline is among the best in the industry,
boasting large, multi-year projects. However, due to its
integrated nature, Chevron is particularly susceptible to
downside risk from any weakness in the global economy.

Chevron currently carries a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.

Meanwhile, one can consider better-ranked energy sector stocks of
Clayton Williams Energy, Inc.

(
CWEI

),
Range Resources Corporation

(
RRC

) and
Valero Energy Corporation

(
VLO

). All these stocks currently sport a Zacks Rank #1 (Strong
Buy).

CHEVRON CORP (CVX): Free Stock Analysis
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WILLIAMS(C)ENGY (CWEI): Free Stock Analysis
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RANGE RESOURCES (RRC): Free Stock Analysis
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VALERO ENERGY (VLO): Free Stock Analysis
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