Guyana Gas Bonanza On Hold: Exxon Reportedly Faces Deadline For Stabroek Development
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corporation (XOM) and its consortium partners, including Hess Corp (HES) and CNOOC Ltd., face an October deadline to decide on the development of a large natural gas find off the coast of Guyana. The Guyanese government is pressing for development or relinquishment of 20% of the Stabroek block if it remains undeveloped. Exxon is currently appraising the gas findings and considering commercialization options. The consortium's exploration agreement runs through 2027. Additionally, Norway's sovereign wealth fund plans to vote against the reappointment of Exxon's lead independent director due to a lawsuit against climate activist investors.
May 24, 2024 | 3:42 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Hess Corp, as part of the Exxon-led consortium, faces an October deadline to decide on the development of a large natural gas find in Guyana. The government is pressing for action or relinquishment of 20% of the Stabroek block.
Hess Corp, as a partner in the consortium, is directly impacted by the decision on the Stabroek block. The outcome could affect Hess's future operations and asset holdings in Guyana, but the immediate stock price impact is uncertain.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Investors can gain exposure to Exxon Mobil through the iShares U.S. Energy ETF (IYE). The fund may be indirectly impacted by Exxon's decision on the Guyana natural gas find.
IYE provides exposure to Exxon Mobil, and any significant developments regarding Exxon's operations in Guyana could indirectly impact the fund. However, the immediate effect on IYE is likely to be limited.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Exxon Mobil through the Energy Select Sector SPDR Fund (XLE). The fund may be indirectly impacted by Exxon's decision on the Guyana natural gas find.
XLE provides exposure to Exxon Mobil, and any significant developments regarding Exxon's operations in Guyana could indirectly impact the fund. However, the immediate effect on XLE is likely to be limited.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Exxon Mobil faces an October deadline to decide on the development of a large natural gas find in Guyana. The government is pressing for action or relinquishment of 20% of the Stabroek block. Exxon is appraising the gas findings and considering commercialization options.
The news indicates a significant decision point for Exxon Mobil regarding the development of a large natural gas find. The outcome could impact Exxon's future operations and asset holdings in Guyana, but the immediate stock price impact is uncertain.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100