- ExxonMobil Corp XOM has not yet decided whether it will bid for new offshore areas in Guyana as the company is ramping up production faster than expected.
- Exxon has told the government that it will await economic conditions before deciding whether to expand its acreage.
- An Exxon-led consortium discovered oil in the deep waters off the coast of Guyana, started its first production in 2019, and now controls all production.
- Estimated 11 billion barrels of recoverable oil discovered Reuters reported.
- Also read: Exxon and Shell are trying to sell the California oil and gas joint venture.
- Guyana lacks the financial muscle to develop its natural resources. It’s struggling to sell its oil properties outside the Exxon blocks, so it has postponed a possible auction originally scheduled for this year.
- The Exxon consortium includes Hess Corp HE IS and CNOOC Ltdand the group increased production for assets in Guyana for the second time this year.
- Guyana currently keeps less than 15% of oil revenues, while the Exxon consortium keeps the rest while paying for the construction of the country’s oil infrastructure.
- Guyana is considering holding an auction for unallocated acreage or partnering with a national oil company that could produce oil from the new properties, Vice President Bharrat Jagdeo said.
- price action: XOM shares are down 0.23% to $92.99 during the premarket session last check Tuesday.
- Photo via Wikimedia Commons
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