Exxon Mobil in Talks to Build Fourth Oil Production Rig for Guyana

Guyana is home to the world’s biggest offshore discoveries in years, with 10 billion barrels of recoverable oil and gas.

Sabrina Valle and Neil Marks, Reuters

Exxon Mobil Corp. is in discussions with Dutch contractor SBM Offshore NV to build a fourth multibillion-dollar production unit to develop its Guyana oil discoveries, two people close to the negotiations said.

The talks include the potential for some future platform assembly in Guyana, the people said. Guyana hopes to develop an oil industry infrastructure to boost the economy and job growth. Officials are under pressure to show the potential oil bonanza will be shared with its citizens.

The South American country is home to the world’s biggest offshore discoveries in years, with 10 billion barrels of recoverable oil and gas. Guyana kicked off production in 2019 and is rushing to draft oil legislation and establish regulatory bodies for the industry. An Exxon Mobil-led consortium is responsible for all output in the country.

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