Monday, June 26, 2017

Guyana allows ExxonMobil, partners to start drilling for oil

By on June 16, 2017

This Wednesday, Sept. 21, 2016, photo shows ExxonMobil’s Billings Refinery in Billings, Mont. (AP Photo/Matthew Brown, File)

GEORGETOWN, Guyana – Guyana has issued an operating license and environmental permit to ExxonMobil, which has said it made “significant” oil discoveries off the South American country’s coast.

Resources Minister Raphael Trotman says Exxon and partners Hess Guyana Exploration Ltd. and CNOOC Nexen can now drill an area believed to contain at least two billion barrels of oil.

He said late Thursday that oil extraction is expected to start in 2020 at an initial rate of 100,000 barrels per day. ExxonMobil will receive a royalty of 2 percent on gross earnings and 50 percent of profits.

The company has drilled more than half a dozen wells since 2015 and only one has come up dry. That discovery has attracted dozens of other oil companies to Guyana.

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