Exxon undecided on auction for Guyana’s oil assets despite increased production: report – Exxon Mobil (NYSE:XOM)

  • Exxon Mobil Corp. XOM has not decided whether it will bid for new offshore areas in Guyana as the company ramps up production faster than expected.
  • Exxon told the government it would wait for economic conditions before deciding whether to expand its acreage.
  • An Exxon-led consortium discovered oil in deep waters off the coast of Guyana, launched its first production in 2019 and now controls all production.
  • An estimated 11 billion barrels of recoverable oil have been discovered, Reuters reported.
  • Read also : Exxon and Shell seek to offload California oil and gas joint venture.
  • Guyana does not have the financial power to develop its natural resources. It has struggled to distribute its oil holdings outside of Exxon’s blocks, postponing a possible auction originally scheduled for this year.
  • The Exxon consortium includes Hess Corp. IT IS and CNOOC Ltdand the group increased production for the second time this year for Guyanese assets.
  • Guyana currently keeps less than 15% of oil revenue, with the Exxon consortium keeping the rest while paying for the construction of the country’s oil infrastructure.
  • Guyana is considering holding an auction for unallocated exploration areas or recruiting a national oil company for a partnership that could produce oil from the new properties, Vice President Bharrat Jagdeo said.
  • price action: XOM shares are down 0.23% at $92.99 in the premarket session of the last check on Tuesday.
  • Photo via Wikimedia Commons

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