Exxon Mobil ( NYSE: XOM ) confirms it is preparing to approve its fifth oil production project in Guyana and may take additional exploration acreage, Alistair Routledge, head of the company's Guyana operations, told Reuters in an interview on Monday.
The proposed fifth development, at the Uaru oilfield, would pump ~250K bbl/day of oil at its peak and be the Exxon-led consortium's largest and most expensive project, outstripping the $10B cost of the fourth project.
The development will cost ~$12.7B , according to an estimate prepared for Guyana's Environmental Protection Agency, 27% more than Exxon's ( XOM ) fourth development, with first oil projected to flow by 2027 and continue for 20 years.
Exxon ( XOM ) has submitted a development plan for the oilfield, and an initial construction contract was awarded last fall to Japan's Modec Inc.;Routledge said if the plan is approved by Guyana's government, the consortium could sanction spending on the project by April.
Exxon ( XOM ) will consider submitting bids when Guyana holds its first competitive auction for new exploration areas in April, although "it would be premature to say yes or no" to participation before the country releases the full terms of new production contracts.
Wall Street is broadly bullish on Exxon Mobil ( XOM ), but the stock has "nowhere to go but down," David Alton Clark writes in an analysis posted recently on Seeking Alpha .
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Exxon confirms fifth oil production project in Guyana, considering more blocks