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ExxonMobil negotiating return Guyanese exploration areas

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Reuters reports that Guyana is in talks with ExxonMobil about returning some of the oil major’s unexplored areas.

Guyana is an emerging oil-producing country, but production is currently dominated by ExxonMobil, so it is seeking to attract a more diverse range of operators to the country. Under the terms of the 2016 production agreement, Exxon is obliged to return 20% of the area it has yet to explore this year. A spokesperson for the company said to Reuters that it was complying with relevant legislation and was engaged in:

“…ongoing discussions with the government regarding these requirements, in respect to both timing and area.”

The consortium led by ExxonMobil, which also makes the Mobil coolant and grease range, currently has two offshore vessels producing some 375,000 barrels of oil per day (bpd). It hopes to triple this by 2027 by investing some $45 billion to get a total of five active production vessels.

The released acreage will include parts of the Canje and Kaieteur blocks, which are yet to be developed, as well as unexplored parts of the Stabroek block, which covers some 6.6 million acres and is where the Exxon-led consortium has made significant finds, including the wells that are already producing.

Reuters reports sources familiar with the discussions as saying that the returned areas could be put up for competitive auction. Guyana is already planning to offer 14 offshore blocks in a competitive auction later this year to tempt more oil companies to the country.

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