Exxon Mobil Withdraws from Guyana Oil Block Talks

Exxon Mobil has exited negotiations with Guyana over exploring a shallow-water oil block. Exxon, along with Hess Corp and CNOOC, had acquired block S8 in a 2022 bidding round. The project was to be used for carbon capture, pending non-fiscal terms agreement.

In a decisive move, U.S. oil major Exxon Mobil has opted to withdraw from discussions with Guyana's government regarding a shallow-water exploration block. This announcement came from Vice President Bharrat Jagdeo, who briefed reporters on the latest developments.

Exxon had joined forces with U.S.-based Hess Corp and China's CNOOC to secure block S8 during a bidding round initiated at the end of 2022. The consortium was engaged in discussions aimed at finalizing non-fiscal terms for the undertaking.

Notably, Exxon intended to use this offshore location for carbon capture initiatives. However, it remains uncertain whether Hess and CNOOC will persist in their negotiations with the Guyanese authorities concerning the area.

(With inputs from agencies.)