Exxon Stock Is Falling as the Company Has Not Decided About Its Next Guyana Auction Offer.
Exxon Mobil (NYSE:XOM)
Reuters reported on Tuesday that Exxon Mobil (NYSE:XOM) is undecided about submitting a proposal for additional offshore areas Guyana wants to explore as the country struggles to settle on terms for new oil licenses.
An estimated 11 billion barrels of recoverable oil have been discovered in Guyana, making it an emerging oil power. However, the country is having trouble deciding how to distribute oil properties outside of Exxons blocks, and a potential auction initially scheduled for this month has been pushed back to later in the year.
The 2016 Exxon Mobil stock contract signed by the previous government has been criticized as disadvantageous to Guyana due to the countrys little share of the oil profits (less than 15%) and the high expenses of constructing the oil infrastructure (paid for by the Exxon-led consortium).
Exxon Mobil stock made two additional finds, the sixth and seventh for the year in Guyana, earlier this summer.
According to a previous press release, Exxon Mobil stock announced two additional discoveries southeast of the Liza and Payara complexes in the offshore Guyana Stabroek block.
It has been reported by Exxon Mobil (NYSE:XOM) that the discoveries at Seabob and Kiru-Kiru are the sixth and seventh discoveries in Guyana this year, bringing the total number of discoveries in Guyana to above 25.
According to the companies, a total of 340K bbl/day of oil has been produced from the Liza Destiny and the Liza Unity, two FPSOs operating offshore Guyana.
Construction of the FPSO production vessel for the third project, Payara, is five months ahead of schedule, suggesting that start-up might occur as early as the end of 2023. The fourth project, Yellowtail, is anticipated to begin production in 2025 and produce 250K bbl/day.
Exxon stock plummeted after it was indecisive about its next Guyana auction offer.
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Author: Shariq Khan
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