Puerto Rico’s San Juan — ExxonMobil said Wednesday that it made two more oil discoveries off the coast of Guyana as South American countries were preparing to become the world’s newest major oil producers.
The discovery occurred in an area where authorities believed they could extract at least 10 billion barrels of oil equivalent.
According to the company, vessels arriving in Guyana at the end of last year will begin production within the next few months, targeting up to 220,000 barrels of oil per day. Authorities said another vessel would begin production in 2024.
Guyana issued its first oil and gas license to ExxonMobil in 2017 after announcing that ExxonMobil had made “significant” oil discoveries on the country’s Atlantic coast. The deal is expected to generate up to $ 5 billion annually in Guyana.
ExxonMobil began exploring oil and gas near Guyana in 2008 and drilled its first exploration well in 2015. We are working with three partners. EssoExplorationandProduction Guyana Limited, 45% stake operator, Hess Guyana Exploration Ltd. 30% stake, and 25% stake CNOOC Petroleum Guyana Limited.
Recent oil discoveries have rekindled a decades-old border dispute with neighboring Venezuela. Venezuela claims ownership of the water that various companies are seeking for oil.
The Guyana government, which relies on products such as gold, rice, sugar and bauxite, has promised free education, free cooking gas and cheap gasoline with expected oil revenues.