Exxon group pulls out of talks with Guyana over shallow water oil block, authorities says

By Kemol King

GEORGETOWN (Reuters) – U.S. oil main Exxon Mobil (NYSE:XOM) and companions have pulled out of negotiations with Guyana’s authorities on phrases for exploring and growing a shallow-water oil block, the South American nation’s vp mentioned on Thursday.

Exxon, U.S.-based Hess (NYSE:HES) and China’s CNOOC (NYSE:CEO) received offshore block S8 in a bidding spherical launched in late 2022 by President Irfaan Ali’s administration in a transfer to diversify Guyana’s power business.

The businesses had been engaged this yr in negotiations for the non-fiscal phrases of the undertaking, in line with Exxon and authorities officers.

“Exxon pulled out,” Vice President Bharrat Jagdeo instructed reporters in a briefing. “They needed to make use of the realm for carbon seize and storage, and we do not need to try this at this stage.”

Companions Hess and CNOOC additionally withdrew from the talks, Pure Sources Minister Vickram Bharrat mentioned.

Exxon, Hess and CNOOC didn’t instantly reply to requests for remark.

Eight of the 14 oil and gasoline blocks Guyana provided within the spherical obtained bids, together with by giant corporations equivalent to Petronas, CNOOC and TotalEnergies (EPA:TTEF).

The federal government mentioned final month that TotalEnergies, Qatar Vitality, Petronas, Cybele Vitality, Delcorp and Worldwide Group Funding have reached agreements with Guyana over phrases of manufacturing sharing offers; and added that an settlement for Exxon’s space was “beneath evaluation,” with out elaborating.

The public sale was organized to increase Guyana’s power business. However because the Exxon consortium shortly ramps up output, which has elevated to some 660,000 barrels per day (bpd) solely 5 years after inauguration, the group continues controlling all manufacturing within the nation.

Earlier this week, neighbor Suriname introduced Exxon had withdrawn from offshore block 52, one of the vital promising oil and gasoline initiatives within the nation, leaving the realm solely to operator Petronas.