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Exxon Mobil Corp (NYSE: XOM) would wind down oil manufacturing in Equatorial Guinea and go away the West African nation after its license expired in 2026.
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The exit mirrored a broader transfer by main oil producers to cut back crude manufacturing in West Africa for lower-carbon pure gasoline growth and extra profitable tasks within the Americas, Reuters studies.
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“It’s a high-cost area the place carbon emissions are an issue as effectively,” mentioned Gail Anderson at power consultants Wooden Mackenzie.
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Exxon has minimize its output within the nation to lower than 15,000 barrels of oil per day (bpd) by the present manufacturing unit Serpentina.
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This yr, it evacuated employees from the offshore manufacturing platform Zafiro as a result of water coming into the growing older vessel.
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Europe, which has been in search of different oil suppliers after sanctions on Russia this yr, is the main vacation spot for Equatorial Guinea’s oil exports.
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Africa struggled to satisfy OPEC quotas because of the lack of investments in crude manufacturing.
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Overseas oil producers Chevron Corp (NYSE: CVX), Shell Plc (OTC: RYDAF), and Exxon have retreated from Nigeria as a result of rampant ranges of oil theft, promoting their belongings primarily to native corporations.
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As crude output in West Africa shrinks, manufacturing within the Americas will possible develop to twenty-eight million bpd subsequent yr, up 2.3 million bpd from pre-pandemic ranges, OPEC estimates present. A lot of the rise comes from the U.S., Canada, Guyana, and Brazil, some locations the place Exxon has elevated spending on oil output.
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Whereas crude oil manufacturing wanes in West Africa, the continent’s liquefied pure gasoline (LNG) future is rising, and fossil gas output may develop elsewhere in Africa.
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Value Motion: XOM shares traded increased by 1.55% at $111.51 within the premarket on the final examine Tuesday.
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