Georgetown, Guyana – February 7th , 2024
ExxonMobil, the multinational oil giant, has announced plans to explore for oil offshore in the Essequibo Region of Guyana, despite previous tensions with Venezuela over territorial disputes in the area. President of ExxonMobil Guyana, Alistair Routledge, revealed the company’s intentions on Tuesday, emphasizing their commitment to drilling two exploration wells west of the Liza and Payara fields.
The Essequibo Region has been a focal point of contention between Guyana and Venezuela for years. In 2015, Venezuela unilaterally extended its maritime boundary to encompass waters off the Essequibo, Demerara, and Berbice counties, following ExxonMobil’s initial oil discovery offshore Guyana. Tensions escalated further in 2018 when Venezuela’s navy intercepted seismic research vessels operating in the region.
Routledge clarified that ExxonMobil’s exploration plans in the area are not hindered by geopolitical tensions. The company intends to invest approximately US$60-70 million in each exploration well, with the possibility of increased costs depending on data requirements and stem drill tests.
Despite recent saber-rattling, Routledge reiterated ExxonMobil’s confidence in the legality of its agreement with Guyana and its rights to the blocks under international law. He welcomed the Argyle Declaration, an agreement between Guyana’s President Irfaan Ali and Venezuelan President Nicolas Maduro to refrain from threats or use of force.
Highlighting the growing defense cooperation between the United States and Guyana, Routledge praised efforts to enhance air domain awareness and protect national security. Recent discussions between US Air Force Major General Evan L. Pettus and Guyanese officials focused on advancing Guyana’s airspace awareness capacity.
President Irfaan Ali affirmed Guyana’s commitment to bolstering air domain awareness, allocating funds in the 2024 National Budget for the purchase of helicopters, drones, and offshore patrol vessels. Additionally, Guyana has signed port security agreements with the US and Canada to enhance port security measures.
ExxonMobil’s exploration plans signal a continued push for oil development in the Essequibo Region, amidst ongoing diplomatic efforts to address territorial disputes and strengthen national security measures.
