After Failing For Third Time, Exxon Ends Oil Drilling In Brazilian Offshore Waters

Exxon Mobil Corp XOM has reportedly stopped drilling in the offshore acreage after failing to find commercially viable amounts of crude in Brazil's deep waters for the third time.
In 2021, Exxon drilled two wells in Brazil's Campos and Santos basins. Last year, it drilled a third in the Sergipe-Alagoas basin. None of the three wells off Brazil had enough oil to be commercially viable.
Related: Exxon, Chevron Retreat From Big International Projects, Shift Focus On Oil Projects In Americas.
The Texas oil giant has shifted geologists and engineers who had worked on the yearslong drilling campaign to other countries, including Guyana, Angola, and Canada.
It hasn't put out tenders to drilling contractors for exploratory work there in the year since its last active rig contract expired in April 2022, Wall Street Journal reported citing analysts, and it skipped Brazil's latest offshore auction in December.
Exxon hasn't ruled out future projects in Brazil, the report added, citing people familiar with the matter.
Michelle Gray, a spokeswoman for Exxon, told WSJ the company is still engaged in Brazil and pursuing exploration activity in the country.
Exxon has a minority stake in a separate offshore project in Brazil led by Equinor ASA EQNR, Bacalhau, moving forward.
The companies authorized the project's first phase in 2021 and expect it to come online in 2025, extracting around 220,000 barrels daily.
Price Action: XOM shares closed at $115.20 on Tuesday.
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