Exxon Withdraws From Offshore Suriname Oil-Exploration Block

(Bloomberg) — Exxon Mobil Corp. withdrew from an oil-exploration block off the coast of Suriname, not far from where it discovered more than 11 billion barrels in Guyanese waters.

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Exxon will transfer its 50% stake in the block to Malaysia’s Petronas, the operator of the project and owner of the remaining 50%, according to a statement from Staatsolie, Suriname’s state-owned oil company. Exxon confirmed its exit in a separate statement.

Suriname, a former Dutch colony on the northeast tip of South America, is hopeful that it will one day transform its economy into a major oil producer like neighboring Guyana. TotalEnergies SE and APA Corp. recently approved a $10.5 billion project that’s expected to begin pumping crude as soon as 2028.

Still, converting exploration success into tangible oil production has been more challenging than in Guyana, in part due to the high natural gas content of crude from Suriname.

Exxon and Petronas made a gas discovery on the block in 2020 and drilled a second well for appraisal purposes earlier this year, Staatsolie said. “Staatsolie expects Petronas to continue the activities in Block 52 without interruption.”