Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

ExxonMobil exits Kaieteur Block, shifts focus to Stabroek and Canje Blocks

Published Sep 29, 2023 08:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

ExxonMobil (NYSE:XOM), with a significant market capitalization of $476.27 billion as per InvestingPro data, announced its exit from the Kaieteur Block offshore Guyana, assigning its participating interest to Ratio Guyana Limited and Cataleya Energy Limited, as reported on Friday. This strategic move is part of the oil giant's decision to focus its resources on the Stabroek and Canje Blocks, where it sees more growth potential.

Ratio Guyana Limited, a Tel Aviv-based energy company, is expected to take over as the operator of the Kaieteur Block. This company operates in a joint venture with ESSO Guyana Limited, holding 25% of the license in the Kaieteur Block which spans approximately 13,535 square kilometers.

Before Exxon's withdrawal, it held a 35% working interest in the block. The remaining stakeholders, Hess (NYSE:HES) with a 20% interest, Cataleya with 20%, and Ratio with 25%, may now each retain a 50% participating interest. This change in ownership is subject to approval from the Guyana Government.

The Kaieteur Block has proven reserves of 65 million barrels of oil discovered at the Tanager-1 site at the beginning of 2021. Additional oil prospects have been mapped across a 5750 sq km 3D seismic survey located in the southern part of the block.

ExxonMobil's departure from the Kaieteur Block does not affect its commitment to further exploration and development opportunities in Guyana. The company plans to accelerate development and production in the Stabroek Block, targeting six Floating Production, Storage and Offloading Vessels (FPSOs) by the end of 2027. This will increase Guyana's production capacity to over one million barrels per day.

ExxonMobil, which has been a prominent player in the Oil, Gas & Consumable Fuels industry as noted in InvestingPro Tips, began producing oil on December 20, 2019, in the Stabroek Block. The block spans 6.6 million acres (26,800 square kilometers) and production has been steadily increasing, currently standing at 340,000 barrels per day from the "Liza Destiny" and "Liza Unity" FPSO vessels.

ExxonMobil's local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), holds a 45% interest in the Stabroek Block. The remaining interests are held by Hess Guyana Exploration Ltd. with 30% and CNOOC (NYSE:CEO) Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, with 25%.

Earlier this month, Guyana concluded the bid round of its historic oil block auction, receiving 14 offers on eight of the 14 blocks offshore that were put up for auction. The government is currently evaluating the bids received and expects to conclude agreements by the end of this year.

According to InvestingPro Tips, ExxonMobil has a strong financial profile, with a perfect Piotroski Score of 9, indicating a healthy financial situation. The company has also been consistently increasing its earnings per share and has maintained dividend payments for 53 consecutive years, making it an attractive investment for those interested in steady income. For more insights and tips like these, consider subscribing to InvestingPro's service here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

ExxonMobil exits Kaieteur Block, shifts focus to Stabroek and Canje Blocks

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email