Exxon continues to discuss shallow-water blocks in Guyana's auction, the company reports

Exxon Mobil, the U.S. oil giant and its partners continue to negotiate with Guyana’s government about terms for developing an oil block in shallow water. An Exxon spokesperson confirmed this on Monday.

Exxon Hess, CNOOC and Exxon won the offshore block S8 during a bid round that was launched by President Irfaan Ali’s administration in late 2022.

A spokesperson for Exxon Mobil confirmed via email that the group is still interested in the block, and that talks are ongoing. The spokesperson refused to reveal whether the group intended to use this block for oil and gas exploration or carbon capture and storage.

Last month, the vice president of the South American nation said that the group withdrew from the auction because the government had no interest in a project to sequester carbon. Bharrat Jagdeo, the vice president of South America's country, said that Exxon wrote to the government about its interest in the block. Jagdeo responded to a question about additional auction details by saying that Exxon had said it was possible there was a miscommunication. They haven't walked away. "Let's wait and see what happens."

Petronas CNOOC, TotalEnergies and other large oil companies submitted bids for eight of the fourteen oil and gas blocks Guyana had offered during the round. Jagdeo stated that he expects to reach an agreement with TotalEnergies soon. Reporting by Kemol Kings in Georgetown, Gary McWilliams at Houston and Muralikumar Anantharaman in editing.

(source: Reuters)