Exxon undecided on future Guyana auction bid - Reuters

Sep. 20, 2022 9:43 AM ETExxon Mobil Corporation (XOM)By: Carl Surran, SA News Editor14 Comments

Oil platform on the ocean. Offshore drilling for gas and petroleum

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Exxon Mobil (NYSE:XOM) is uncertain whether it will bid for new offshore areas Guyana wants to explore, as the country wrestles with fixing terms of new oil leases, Reuters reports Tuesday.

Guyana has become an emerging oil power with an estimated 11B barrels of recoverable oil discovered so far, but it is struggling to decide how to distribute oil properties outside of Exxon's blocks, and it has postponed a possible auction initially targeted for this month to late this year.

According to the report, Exxon (XOM) has told Guyana's government it will wait for economic terms before deciding if it wants to expand its acreage.

Exxon's (XOM) 2016 contract signed by a previous government has been criticized as unfavorable to Guyana, which keeps less than 15% of the oil proceeds with the Exxon-led consortium keeping the rest while also paying for costs of building the country's oil infrastructure.

Exxon Mobil (XOM) made two new discoveries offshore Guyana earlier this summer, the sixth and seventh in Guyana this year.

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