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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.
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