ExxonMobil halts Guyana work on Venezuela brush

: Crude oil
18/12/24

ExxonMobil said it suspended seismic surveys on the Stabroek block off Guyana after a research vessel it had contracted was approached by a Venezuelan navy ship.

The 22 December incident is the latest flare-up in a 19th century territorial dispute in which Caracas claims sovereignty over Guyana's western Essequibo province. For Venezuelans, the Guyana claim is a rare issue that unites the government and its opponents at a time of severe economic crisis in the Opec country.

Since 2015, ExxonMobil has discovered an accumulated 5bn bl of oil equivalent (boe) of resources on a block in the disputed area. The US major plans to start producing 120,000 b/d in March 2020, ramping up to 750,000 b/d by 2025, catapulting sparsely populated Guyana into the upper ranks of oil-producing countries.

After the brush with the Venezuelan vessel, the Ramform Tethys survey ship operated by Norwegian contractor PGS left the western section of the Stabroek block and is headed eastward, ExxonMobil and PGS said.

"Seismic operations on the Stabroek block have been paused until they can be safely continued," ExxonMobil said. "Our main concern is for the safety of crew members and others in the area." ExxonMobil is in communication with "the necessary authorities" on the encounter.

The Venezuelans did not board the Bahamas-flagged Ramform Tethys that has a crew of 70, PGS said.

"Guyana rejects this illegal, aggressive and hostile act perpetrated by Venezuela which once again demonstrates the real threat to Guyana's economic development," Guyana's foreign minister Carl Greenidge said, adding that the government will bring "this latest act of illegality and blatant disrespect for Guyana's sovereignty to the attention of the United Nations."

ExxonMobil operates the 6.6mn acre (26,800km2) Stabroek block with a 45pc stake. US independent Hess holds 30pc, and the remaining 25pc belongs to Nexen, a unit of Chinese state-owned CNOOC.

Venezuela's foreign ministry said the navy's patrol vessel Oceanico Kariña (PO-14) encountered two seismic vessels, which it identified as "Ramfor" and Trinidad and Tobago-flagged Delta Monarch, providing their maritime coordinates in the Orinoco Delta of Venezuela's "undoubtable sovereignty".

There was no immediate confirmation from ExxonMobil or Trinidad's Delta Logistics about the second vessel cited by Venezuela.

According to the Venezuelan foreign ministry, the vessel captains indicated that they had permission from Guyana to navigate in the area, but were informed by Venezuela that Guyana has no jurisdiction there.

Venezuela has contacted the office of the UN secretary general and issued a note of protest to the government of Guyana, and calls on Guyana to reestablish dialogue over the disputed area, the ministry said.

Two Venezuelan military sources told Argus the incident likely stemmed from the initiative of the navy vessel's captain, rather than from Caracas. The Venezuelan vessel was described as a gun-laden corvette used to gather intelligence, pursue drug traffickers and patrol the offshore Essequibo area.

The disputed territory had been mostly subdued since October 2013, when Venezuela's navy seized the Teknik Perdana research vessel that had been studying the Roraima block on behalf of US independent Anadarko. The vessel and the crew were released after a week. Anadarko has not restarted work on the block.

After raising objections to ExxonMobil's drilling plans in 2016, Caracas went silent on the matter as it focused on containing internal strife.

Guyana rejected a call in April 2018 from Venezuela to return to seeking a diplomatic solution. This followed a January 2018 UN request for the International Court of Justice to settle the dispute, after the UN failed to mediate an agreement.

The dispute has not affected other companies with offshore licenses in Guyana's acreage that include Canadian independent CGX, France's Total, UK-listed Tullow and Spain's Repsol.

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25/07/09

Market needs Opec+ output hikes : UAE energy minister

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Mideast NOCs, majors upbeat on near-term oil demand

25/07/09

Mideast NOCs, majors upbeat on near-term oil demand

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Alberta, Ontario to study oil pipelines, port, rail

25/07/07

Alberta, Ontario to study oil pipelines, port, rail

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Drilling slowdown undermines Trump’s energy dominance

25/07/07

Drilling slowdown undermines Trump’s energy dominance

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Opec+ 8 speeds up output hike to 548,000 b/d for August

25/07/05

Opec+ 8 speeds up output hike to 548,000 b/d for August

London, 5 July (Argus) — Eight core Opec+ members have agreed to further speed up their plan to increase crude production, the Opec secretariat said on Saturday. Saudi Arabia, Iraq, Kuwait, Russia, the UAE, Algeria, Oman and Kazakhstan will raise their collective crude production target by 548,000 b/d in August, relative to July. This compares with previous month-on-month hikes of 411,000 b/d for May, June and July. This pace is also four times faster than the eight's original plan to unwind 2.2mn b/d of voluntary crude production cuts at a rate of 137,000 b/d each month between April 2025 and September 2026. The decision means they will have restored almost 80pc of a scheduled 2.46mn b/d increase — which includes a 300,000 b/d capacity-related adjustment for the UAE — in just five months. Should the eight opt for another 548,000 b/d increase for September, they will have fully unwound the cuts 12 months earlier than planned. That would shift focus to a second layer of voluntary cuts totalling 1.66mn b/d that is being implemented by the same eight producers plus Gabon, which are scheduled to remain in place until the end of 2026. The move comes against a backdrop of continued economic uncertainty, largely driven by US trade policy and a rise in geopolitical risk due to the recent 12-day Israel-Iran war. Supply fears linked to the conflict helped push front month Brent futures to above $81/bl on 23 June, although prices have since fallen back to about $68/bl – below where many producers prefer. But the eight countries once again cited "steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories" as the basis for their decision. They also reiterated, as in previous months, that the "increases may be paused or reversed subject to evolving market conditions." One delegate told Argus that they agreed with the decision given the current strength in refining margins, but also that there may not be the same opportunity to return some of these barrels later in the year. This appears to be a reference both to the seasonal uptick in demand with the summer in the northern hemisphere, and to projections of weaker oil demand in the second half of 2025, particularly in the fourth quarter. Another delegate told Argus that there were no diverging views to the decision taken today, compared to the previous meeting when two member countries pushed to pause the monthly hikes. The actual increases in Opec+ production may fall short of the headline figure, given that some members are already producing above their targets and almost all of the eight have pledged to compensate for past overproduction. The group noted that the faster pace would help facilitate this compensation. The group is scheduled to meet again on 3 August to decide on September production levels. By Aydin Calik, Bachar Halabi and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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