Exxon gives up drilling in Brazil for not finding oil – 05/04/2023 – Market

Exxon Mobil has ended a major campaign to find oil in Brazil, the Wall Street Journal reported on Wednesday (5), citing people familiar with the matter.

The oil and gas giant halted current drilling in the offshore acreage it acquired with partners for $4 billion (R$20.3 billion) in 2017 after failing for a third time to find commercially viable amounts of oil, the report said. .

However, the company does not rule out future projects in the country, added the report, citing sources.

Exxon had bet billions of dollars on offshore drilling in Brazil, and the country was one of three geographic areas the company relied on for most of its future production.

The other two —Guyana and the US— are performing well, but the company has yet to make a major oil discovery as an operator in Brazilian waters.

The news comes less than a day after Exxon signaled that its first-quarter operating profits fell about 25% from last year’s record levels as oil and gas prices eased.

Reuters was unable to reach the company outside of business hours in the United States.