Exxon Considers Returning Unexplored Offshore Oil Blocks to Guyana

US: ExxonMobil and the Guyanese government are currently in talks to determine which unexplored offshore blocks the U.S. supermajor should relinquish under their 2016 exploration and production contract. As per the original agreement, Exxon is obligated to return a 20% share of the offshore acres awarded to them and Hess Corp-led consortium in 2023, provided they remain unexplored.

The government of Guyana is looking to expand its thriving oil industry and has opened up areas in the Stabroek block- where Exxon has made significant discoveries offshore- for foreign operators to explore. Exxon is currently in discussions with the government regarding the timing and extent of these requirements. To attract more exploration, Guyana is hosting its first-ever offshore licensing round this year. The deadline for bids has been extended from mid-April to July 15, as a response to industry feedback and modernisation of the oil and gas regulatory framework.

Guyana's government is currently working on a new Production and Sharing Agreements (PSA) model, which caused a one-month delay in the oil auction to mid-August. According to Guyana's Vice President, Bharrat Jagdeo, this delay is necessary to finalize both the PSA model and its accompanying regulations. Ten companies, including Shell, Chevron, and Petrobras, are reportedly interested in bidding in the licensing round. Since Exxon and Hess discovered over 11 billion barrels of oil equivalent offshore, Guyana has become a top destination for exploration and development in recent years.

Exxon Mobil Corporation, a multinational oil and gas company formed in 1999 through the merger of Exxon and Mobil, operates all wells responsible for Guyana's current crude oil production of approximately 360,000 barrels per day (bpd). The corporation has a vertical integration across the entire oil and gas industry, including a chemicals division that produces synthetic rubber, plastic, and other chemical products. Headquartered in Spring, a Houston suburb, ExxonMobil is officially incorporated in New Jersey and is considered one of the largest and most influential companies globally, with revenue rankings ranging from first to tenth among publicly traded companies since the merger and a market capitalization among the highest of any company.

ExxonMobil, a global corporate powerhouse, holds a prominent position among the world's largest and most influential companies. With varying rankings since its merger, it has secured a spot in the top ten publicly traded companies by revenue, boasting one of the largest market capitalizations. As per the latest Fortune 500 report released in 2022, ExxonMobil is placed sixth, while its rank on the Fortune Global 500 stands at twelfth. The oil giant is the largest investor-owned oil firm worldwide, headquartered in the Western hemisphere and leads the way for Big Oil companies, both in terms of production and market value.