Transocean, Ultra Petroleum top energy stock gains
NEW YORK (MarketWatch) -- Exxon Mobil inked a new oil field development deal with Rosneft and
The NYSE Arca Oil Index (XOI) rose 1.8%.
Among oil stocks in the spotlight, Exxon Mobil Corp. and Rosneft said they'll begin drilling in western Siberia in 2013, extending collaboration they began last year.
Exxon Mobil will participate in the venture with a 33% interest and contribute technology and expertise under a new agreement to develop tight oil reserves.
Tight reserves refer to shale reservoirs with low permeability, a problem typically resolved by fracking, or fracturing the reservoir rock under high pressure, a production technique Exxon has helped develop.
The two companies will also set up an Arctic research and design center for offshore development.
Russian President Vladimir Putin and Exxon Chief Executive Officer Rex Tillerson were present at a signing ceremony for the deal.
Transocean Ltd. (RIG) jumped 4.7% after the deep water drilling firm provided a positive status update for its fleet of offshore drilling rigs.
Analysts at UBS said the company has lined up several new contracts with terms of three-to-five years, plus, the number of out-of-service days fell by 19 days for the first drop in three months. "Overall, the June fleet update was a positive," analysts said.
Energy stocks up for the week
Energy stocks rode surging natural gas prices and gains in the broad equities market on hopes for U.S. stimulus to end the week in positive territory.
The NYSE Arca Oil Index closed at 1,150 on Friday, up 2.2% from its ending point of 1,125 on June 8.
The NYSE Arca Natural Gas Index ended at 602 on Friday, about 2.4% above its week-ago close of 588.
The Philadelphia Oil Service Index closed at 203 on Friday, about flat with its week-ago close of 202.