ExxonMobil Corporation has surrendered its 80 percent interest in Ghana’s Deepwater Cape Three Points, an offshore block. In that concession, ExxonMobil controlled 80% of the block, with state-owned Ghana National Petroleum Corporation holding 15% and Ghana Oil Company vested with the remaining 5%. The two companies will now have to search for a new partner for the block.
The work done so far included processing about 2,200 square kilometers (850 square miles) of seismic data, but Exxon didn’t drill any exploration wells. The relinquishment by ExxonMobil comes just two years after Ghana ratified an exploration and production agreement with the company. The oil giant was keen to note that the asset it surrendered was done so that it can focus on developments in Guyana, Brazil, and the U.S. Permian Basin.
In Guyana, ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) is awaiting approval for the Yellowtail Project, the fourth to be developed in the Stabroek Block. It is slated to add 250,000 barrels of oil per day by 2025. Once it comes on stream with EEPGL’s other projects, Liza Phase One, Liza Phase Two, and Payara, Guyana will be producing over 800,000 barrels of oil per day.
With respect to the Yellowtail Project, Stabroek Block partner, Hess Corporation recently noted that discussions were held with the government as it relates to a timely approval process. Hess Corporation’s Chief Executive Officer (CEO), John Hess said the company received assurances that the process would be expedited to allow for permission from the Environmental Protection Agency (EPA) to be given by year-end. This will allow the project to stay on track for first oil in 2025.
