ExxonMobil and Hess have opted to exit the Kaieteur oil exploration area off the coast of Guyana, according to Reuters.
Following unsatisfactory exploration results from the Kaieteur block, as well as the oil and gas explorers’ attention on the Stabroek block, the decision was made.
More than 11 billion barrels of oil and gas have been discovered in the Stabroek block, which is located 200 kilometers offshore Guyana and spans 6.6 million acres.
Exxon has 3.3 million acres in Kaieteur, one of two smaller non-productive areas.
Exxon and Hess have sold their stakes in Kaieteur to Ratio Guyana and Cataleya Energy, who previously held the exploration licenses.
Ratio will take over as the block’s operator, subject to government clearance.
The first well in the block was ruled non-commercial by Exxon.
In the smaller Canje block, it drilled three wells that were likewise financially unviable.
Exxon, Hess, and CNOOC supervise all offshore production in Guyana through the Stabroek block.
That block produces approximately 380,000 barrels of oil per day.
Exxon, as the operator, owns 45 percent of Stabroek. CNOOC owns 25 percent of the working interest, while Hess owns the remaining 30 percent.
Exxon intends to raise Stabroek output to nearly 1.2 million barrels of oil and gas equivalent per day by 2027.
“Our withdrawal from the Kaieteur block has no impact on our commitment to seeking further exploration and development opportunities and to generating additional value for the government and people of Guyana,” Exxon was quoted as saying by the news agency.
Earlier this month, Guyana received eight bids for 14 oil and gas exploration blocks. Exxon, Hess, French oil and gas major TotalEnergies and Qatar Energy were among the bidders.
Last week, Exxon committed to increase oil production in Nigeria by nearly 40,000 barrels per day.