Exxon Mobil Corp. has outlined its intention to proceed with the drilling of two exploration wells offshore Guyana within the current year, despite the proximity of these drilling sites to a region that is subject to dispute with Venezuela. The oil conglomerate is poised to conduct drilling operations west of the Liza field, an area already yielding oil, and situated closer to the border shared with Venezuela. Notably, Exxon Mobil asserts that the ongoing territorial dispute does not impede its plans for exploration and drilling activities in the region.
Since commencing oil production in 2019, Guyana’s fortunes have changed dramatically. With a population of just 800,000, this small South American nation is on track to become one of the world’s leading oil producers per capita in 2024, potentially surpassing major oil-producing nations like Saudi Arabia and Qatar shortly.
Guyana, a tiny South American nation home to more than 800,000 people, made big headlines in December.
The reason? Its neighboring country, Venezuela.
The Guyana government is calling for private sector investors to propose how they can construct a centralised gas connection, storage and transport facility for all natural gas accessed and produced by all oil companies operating in Guyana.
On the northeastern tip of South America, there are three little countries stacked in a row; anomalies of empire whose imperial histories still have resonance today. Guyana, Suriname and French Guiana. One formerly of the British Empire; one formerly of the Dutch Empire; one still an overseas department of France and all speaking the language that their colonial masters left them. Of these, Guyana, formerly British Guyana and the only English-speaking country in South America, has been in the news lately following a referendum in Venezuela where President Maduro invited Venezuelans to decide if a large chunk of Guyana should, in fact, be Venezuelan. Given the vast oil riches off the coast of Guyana, the referendum unsurprisingly passed. Once the sabre-rattling verbal aggression died down, there was agreement that no one wanted to go to war and that the foreign ministers of each country would negotiate a solution over the next three months.
Brazil’s decision to join OPEC+ could have a seismic effect on the global oil production landscape, although it remains to be seen if the country will alter its production.
Brazil’s oil boom poses a significant threat to the ability of OPEC+ to control oil prices, and recent investments from Petrobras suggest the boom won’t end any time soon.
As well as Brazil, OPEC+ continued to face challenges from rising U.S. oil output and threats of increased production from non-consortium member Guyana.
President Nicolas Maduro announced annexation of Essequibo and mobilized army at the border
GEORGETOWN, Sept 13 (Reuters) – Guyana on Wednesday received bids for eight of 14 offshore oil and gas exploration blocks offered in its first auction, including from groups formed by Exxon Mobil (XOM.N) and TotalEnergies (TTEF.PA), according to the government and documents seen by Reuters.
In a mere four years, Guyana went from first discovery to first oil, a rapid timeframe in an industry where it can take years to bring major energy projects online. The former British colony is now a major South American oil producer and global petroleum exporter.
Oceaneering International, through its Offshore Projects Group segment, has secured two contracts, worth more than $100m in total, for offshore projects.