Exxon Mobil Negotiates with Guyana on Oil Block Development

HOUSTON (Reuters) – U.S. oil major Exxon Mobil (NYSE:XOM) and partners are negotiating with Guyana's government on developing a shallow-water oil block, according to an Exxon's spokesperson on Monday.

Exxon, along with Hess (NYSE:HES) and CNOOC (NYSE:CEO), won the offshore block S8 in a bidding round initiated in late 2022 by President Irfaan Ali's administration. The group is still interested in the block, and discussions are ongoing. However, the spokesperson did not specify whether the block would be used for carbon capture and storage or for oil and gas exploration.

Last month, Guyana's vice president indicated that the group had withdrawn from the auction due to the government's lack of interest in a carbon sequestration project. On Thursday, Vice President Bharrat Jagdeo stated that Exxon had since reached out to the government expressing continued interest in the block. "They said there might have been a misunderstanding, they have not walked away from" negotiations, Jagdeo noted, responding to requests for further details about the auction during his weekly briefing. "Let's see how it goes."

Out of 14 oil and gas blocks offered in the round, eight attracted bids from major oil companies, including Petronas, CNOOC, and TotalEnergies (EPA:TTEF). Jagdeo expressed optimism for an agreement with TotalEnergies in the near future.