Exxon withdraws from talks with Guyana about shallow water oil blocks, says the government

Exxon Mobil, a U.S. oil company and its partners pulled out of negotiations on Thursday with Guyana’s government over terms for exploring and developing an oil block in shallow water.

Exxon, Hess of the United States and CNOOC from China won the offshore block S8 during a bid round that was launched by President Irfaan Ali in late 2022 to diversify Guyana’s energy industry.

Exxon officials and Exxon had stated that the companies were engaged in negotiations this year for the non-fiscal aspects of the project.

Bharrat Jagdeo, Vice President of India, told reporters at a press briefing that "Exxon had pulled out." "They wanted the area to be used for carbon storage and capture, but we don't wish to do that right now."

Natural Resources Minister Vickram Bharrat confirmed that Hess and CNOOC partners also withdrawn from the discussions.

Exxon Hess, CNOOC and Exxon did not respond to comments immediately.

Eight of the fourteen oil and gas blocks Guyana had in the round were bids by companies like Petronas CNOOC, and TotalEnergies.

Last month, the government announced that TotalEnergies and Qatar Energy as well as Cybele Energy Delcorp, International Group Investment, and Petronas have been privatized.

Reaching agreements

With Guyana on terms of production-sharing deals. And added that an Exxon agreement was "under review", without providing any further details.

The auction was held to expand Guyana’s energy industry. The Exxon consortium continues to control all production, despite the rapid increase in output. It has reached 660,000 barrels a day only five years after its inauguration.

In the past week, Suriname's neighbor announced that Exxon was a new supplier of fuel.

Withdrawn

Petronas will be left to operate the offshore block 52 project, which is one of the best oil and gas projects on the island. (Reporting and editing by Kemol King, Marianna Pararaga, Marguerita Choy).

(source: Reuters)