Exxon Considers Natural Gas Project In Guyana: Report

A consortium led by Exxon Mobil XOM is reportedly considering its first offshore natural gas production in Guyana, close to the country’s maritime border with Suriname.

Exxon’s Guyana manager Alistair Routledge said, “By early 2025 we will have done the exploration and appraisal work to understand how comfortable we are on the resource,” according to a report by Reuters.

Routledge added, “The earliest the consortium could expect to start gas production in the prospective field near Suriname could be 2029 or 2030.”

As per the report, the consortium has yet to decide whether its seventh offshore project in Guyana will focus on oil or natural gas discoveries in the giant Stabroek block.

Related: Exxon’s Guyana Project Seen Boosting Cash Flow, Analyst Predicts Dividend Bump

Depending on the potential volumes, Exxon will evaluate a floating liquefied natural gas (LNG) facility or piping the gas discovery to an onshore processing plant.

However, Guyana’s Vice President Bharrat Jagdeo commented that the country wants the consortium to co-develop a natural gas project, as per the report.

Notably, Exxon, Hess Corporation HES, and CNOOC are reportedly under pressure from Guyana to develop untapped natural gas in the South American country, where they have discovered over 11 billion barrels of oil and gas since 2015.

Also read: Exxon’s Lithium Experiment Could Be Winner For Oil Company, State Of Arkansas

Last week, Exxon faced investor backlash, accused of silencing climate resolution with legal action.

Earlier this month, Exxon reported fourth-quarter FY23 adjusted net profit of $9.96 billion, or $2.48 per share, down from $14.04 billion, or $3.40 per share, a year earlier, beating the consensus of $2.21. 

Price Action: XOM shares are trading lower by 0.15% at $104.69 premarket on the last check Thursday. 

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