Exxon Undecided On Auction Bidding For Guyana Oil Assets Despite Boosting Production: Report

Exxon Undecided On Auction Bidding For Guyana Oil Assets Despite Boosting Production: Report
  • 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 has told the government it will wait for the economic terms before deciding if it wants to expand its acreage.
  • An Exxon-led consortium discovered oil in the deep waters off Guyana's coast, launched its first production in 2019, and now controls all output. 
  • An estimated 11 billion barrels of recoverable oil have been discovered, Reuters reported.
  • Also Read: Exxon, Shell Seek To Offload California Oil & Gas Joint Venture.
  • Guyana lacks the financial power to develop its natural resources. It has struggled to distribute its oil properties outside Exxon's blocks hence postponing a possible auction initially targeted for this year.
  • Exxon's consortium includes Hess Corp HES and CNOOC Ltd, and the group raised production for a second time this year for Guyana assets.
  • Guyana currently keeps less than 15% of the oil proceeds, with the Exxon's consortium keeping the rest while also paying for building the country's oil infrastructure.
  • Guyana is considering whether to hold an auction for unassigned exploration areas or to recruit 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 during the premarket session on the last check Tuesday.
  • Photo via Wikimedia Commons

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