Latest news with #Exxon-led
Reuters
15-04-2025
- Business
- Reuters
Exxon consortium to begin installation of floating oil facility in Guyana
GEORGETOWN, April 15 (Reuters) - A consortium led by U.S. Exxon Mobil (XOM.N), opens new tab is about to begin the installation of its fourth floating oil production facility in Guyana, the South American country's maritime regulator said in a notice on Tuesday. The floating production storage and offloading (FPSO) facility 'One Guyana,' built by SBM Offshore ( opens new tab with a 250,000 barrel-per-day capacity, departed from Singapore in mid-February. Once installed, the vessel will allow the consortium to boost output capacity to some 940,000 bpd later this year. The group produced an average of 616,000 bpd in 2024 after upgrades at two of its three operational facilities. Two more vessels are expected to arrive in Guyana in the coming two years. One Guyana will allow the Exxon-led consortium, which controls all production in the country, to develop the Yellowtail and Redtail fields, which are part of its massive Stabroek block, where more than 11 billion barrels of recoverable oil and gas have been found. The installation is scheduled to conclude by the end of the year, the maritime regulator added.
Yahoo
28-03-2025
- Business
- Yahoo
Prediction: Chevron Will Soar Over the Next 2 Years. Here's 1 Reason Why.
Chevron (NYSE: CVX) stock has gone nowhere over the past three years. It's a real headscratcher, considering the performance of other energy stocks. The average one in the S&P 500 is up more than 20% in the period, while shares of chief rival ExxonMobil (NYSE: XOM) surged almost 40%. I believe Chevron's days of underperformance are ending. I predict the stock will soar over the next two years. Here's one factor fueling that view. One issue weighing down Chevron's stock in recent years has been the uncertainty surrounding its pending acquisition of Hess (NYSE: HES). The company agreed to buy the fellow oil stock in late 2023 in an all-stock deal valued at $53 billion. It made that move a few weeks after Exxon agreed to buy Pioneer Natural Resources in a $59.5 billion deal. While Exxon closed its megadeal for Pioneer last May, Chevron has yet to complete its purchase of Hess. It has Exxon to blame. The fellow oil giant believes Chevron's purchase of Hess triggered a change-of-control clause related to its joint development agreement in Guyana. As a result, the companies are heading to an arbitration hearing later this year. I predict that Chevron will win its case. That's because its acquisition of Hess is about much more than its stake in the Exxon-led partnership in Guyana. Buying Hess would also expand the company's U.S. onshore position by adding the Bakken to its portfolio. And it would enhance its existing operations in the Gulf of Mexico (also known in the U.S. as the Gulf of America) and Southeast Asia. It's really the perfect strategic fit for Chevron. Chevron is so confident it will close the deal that it recently bought nearly 5% of Hess' stock on the open market. Closing the Hess deal would position Chevron to more than double its free cash flow by 2027 as it benefits from the growth of its existing operations and Hess' growing free cash flow. That surging free cash flow should help give its stock the fuel to soar. Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $739,720!* Now, it's worth noting Stock Advisor's total average return is 870% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 24, 2025 Matt DiLallo has positions in Chevron. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy. Prediction: Chevron Will Soar Over the Next 2 Years. Here's 1 Reason Why. was originally published by The Motley Fool Sign in to access your portfolio
Reuters
06-03-2025
- Business
- Reuters
Guyana's tax agency to begin dispute resolution with Exxon over expenses
GEORGETOWN, March 6 (Reuters) - Guyana's Natural Resources ministry has ordered the country's tax agency to begin a dispute resolution with Exxon Mobil (XOM.N), opens new tab over the recovery of some $214 million in expenses registered by the U.S. oil major. Expenses reported by Exxon as part of its operations at the massive Stabroek offshore block are closely monitored because a consortium led by the U.S. major can take and export up to 75% of the crude it produces as "cost oil", while Guyana's government is entitled to half of the remaining barrels. The government has followed mechanisms included in the contract to have the expenses audited by external consultancy firms and determine if they were correctly reported. The ministry's request follows the completion of an audit by U.S.-based consultancy IHS Markit covering expenses in the 1999-2017 period, which was reviewed by the government. "The Guyana Revenue Authority provided to the ministry a 'no objection' to IHS' recommendation to adjust the cost bank by $214.4 million. This position remains unchanged and clear, and Exxon was so advised," the ministry said in a release. Exxon did not immediately reply to a request for comment. By the end of January, the Exxon-led consortium, which controls all oil and gas output in Guyana, had recovered $33.9 billion of the $41.1 billion spent in the area, the country's Vice President, Bharrat Jagdeo, told Reuters last week. A second audit ordered by the government to firm VHE Consulting covering expenses from 2018 to 2020 is still ongoing, the ministry said, adding that Exxon replied on its initial findings and VHE is now reviewing the response.
Yahoo
24-02-2025
- Business
- Yahoo
Guyana waiting for Exxon's gas development plans until end of March, VP says
By Marianna Parraga and Kemol King GEORGETOWN (Reuters) - Guyana's government expects a consortium led by U.S. oil major Exxon Mobil to brief officials by the end of March on plans to develop offshore gas, the country's vice president told Reuters. "They said: 'by end March, we will tell you what we will do.' And that's what we're waiting (for)," Vice President Bharrat Jagdeo said in an interview on the sidelines of Guyana's Energy Conference in Georgetown. Guyana is the fastest-growing economy in the world thanks to rapid expansion of output from offshore oilfields controlled by the Exxon-led consortium, in which Hess and CNOOC also participate. "Clearly for us, there shall be a project. We have to monetize the gas, and if Exxon doesn't want to do it, we already said to them... we have a lot of people who are interested in doing this on their own," Jagdeo added. The government, which wants to use natural gas to drive growth in the domestic economy, has progressed to award contracts for power and petrochemical projects that will receive gas supplies. It is also exploring options to develop liquefied natural gas facilities to export the fuel. The government says there is enough gas at Exxon's massive Stabroek block for commercial development, while Exxon says it has yet to complete its assessment of the gas resources in the area. Exxon last week announced the "Wales Gas Vision", which outlined what could be done with the offshore gas the consortium is planning to produce, if its assessment shows commercial development is viable. Exxon did not immediately reply to a request for comment. One of the possibilities could be to jointly develop some gas fields with neighbor Suriname, where offshore reserves have also been discovered, Jagdeo said. Guyana, which will be entitled to about 50% of gas produced at Stabroek after the Exxon group takes some of the output to recover expenses, last year chose little-known U.S. company Fulcrum LNG as its preferred partner for a project to process and export the gas. The startup, which the government expects to partner with the Exxon consortium for that development, has since faced questions over its capacity to execute a project that could need as much as $30 billion. Jagdeo acknowledged external concerns about Fulcrum LNG's capacity, but said the government believes the company's team has the potential. "They (Fulcrum LNG) demonstrated to our team that they had substantive backing, both to take the gas... and also for equity investment and raising the capital. So we are hoping that we could continue the tripartite discussion to make this work, Exxon, Fulcrum and the government of Guyana," he said. GAS TO SHORE The Exxon group reinjects the gas it produces into the oilfields already in operation to maintain pressure at the reservoir. The consortium expects to send a small volume of gas back to shore for power generation as soon as this year, depending on when the power plant is ready. Last year, it completed a $1 billion pipeline from the fields. The bulk of future gas supply is expected to come from the Pluma and Haimara projects, rich in gas resources and seen starting output after 2030. The power project, to be built by a consortium between Texas-based Lindsayca and Puerto Rico-based CH4 Systems, faces problems after a three-month delay to hand over the site. The parties could go to arbitration over the delay, but the project will be completed, Jagdeo said. A separate plan to build a fertilizer plant also connected to Exxon's pipeline could be offered this year through a tender for companies interested, Jagdeo said. Guyana is also trying to clear a standoff with Canada-based firms Frontera Energy and CGX Energy over the expiration of an exploration license for a key offshore block where oil reserves were found. The dispute could also end up in arbitration after the government notified Frontera and CGX that it had canceled the license. Sign in to access your portfolio
Reuters
24-02-2025
- Business
- Reuters
Guyana waiting for Exxon's gas development plans until end of March, VP says
GEORGETOWN, Feb 24 (Reuters) - Guyana's government expects a consortium led by U.S. oil major Exxon Mobil (XOM.N), opens new tab to brief officials by the end of March on plans to develop offshore gas, the country's vice president told Reuters. "They said: 'by end March, we will tell you what we will do.' And that's what we're waiting (for)," Vice President Bharrat Jagdeo said in an interview on the sidelines of Guyana's Energy Conference in Georgetown. Guyana is the fastest-growing economy in the world thanks to rapid expansion of output from offshore oilfields controlled by the Exxon-led consortium, in which Hess (HES.N), opens new tab and CNOOC ( opens new tab also participate. "Clearly for us, there shall be a project. We have to monetize the gas, and if Exxon doesn't want to do it, we already said to them... we have a lot of people who are interested in doing this on their own," Jagdeo added. The government, which wants to use natural gas to drive growth in the domestic economy, has progressed to award contracts for power and petrochemical projects that will receive gas supplies. It is also exploring options to develop liquefied natural gas facilities to export the fuel. The government says there is enough gas at Exxon's massive Stabroek block for commercial development, while Exxon says it has yet to complete its assessment of the gas resources in the area. Exxon last week announced the " Wales Gas Vision", which outlined what could be done with the offshore gas the consortium is planning to produce, if its assessment shows commercial development is viable. Exxon did not immediately reply to a request for comment. One of the possibilities could be to jointly develop some gas fields with neighbor Suriname, where offshore reserves have also been discovered, Jagdeo said. Guyana, which will be entitled to about 50% of gas produced at Stabroek after the Exxon group takes some of the output to recover expenses, last year chose little-known U.S. company Fulcrum LNG as its preferred partner for a project to process and export the gas. The startup, which the government expects to partner with the Exxon consortium for that development, has since faced questions over its capacity to execute a project that could need as much as $30 billion. Jagdeo acknowledged external concerns about Fulcrum LNG's capacity, but said the government believes the company's team has the potential. "They (Fulcrum LNG) demonstrated to our team that they had substantive backing, both to take the gas... and also for equity investment and raising the capital. So we are hoping that we could continue the tripartite discussion to make this work, Exxon, Fulcrum and the government of Guyana," he said. GAS TO SHORE The Exxon group reinjects the gas it produces into the oilfields already in operation to maintain pressure at the reservoir. The consortium expects to send a small volume of gas back to shore for power generation as soon as this year, depending on when the power plant is ready. Last year, it completed a $1 billion pipeline from the fields. The bulk of future gas supply is expected to come from the Pluma and Haimara projects, rich in gas resources and seen starting output after 2030. The power project, to be built by a consortium between Texas-based Lindsayca and Puerto Rico-based CH4 Systems, faces problems after a three-month delay to hand over the site. The parties could go to arbitration over the delay, but the project will be completed, Jagdeo said. A separate plan to build a fertilizer plant also connected to Exxon's pipeline could be offered this year through a tender for companies interested, Jagdeo said. Guyana is also trying to clear a standoff with Canada-based firms Frontera Energy ( opens new tab and CGX Energy (OYL.V), opens new tab over the expiration of an exploration license for a key offshore block where oil reserves were found. The dispute could also end up in arbitration after the government notified Frontera and CGX that it had canceled the license. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
