Petronas Steps Up as Exxon Exits Key Guyana Oil Block

News Americas, New York, NY, November 22, 2024: Malaysian energy giant Petronas is emerging as a key player in Guyana’s energy landscape, taking center stage in a shallow-water oil block there after the Exxon Mobil-led consortium ended talks with the Guyanese government.

Exxon Mobil, along with Hess Corporation and China’s Cnooc, had secured the offshore Block S8 in a 2022 bidding round. However, negotiations faltered this year as Exxon reportedly sought to use the area for carbon capture and storage. “We don’t want to do that at this stage,” said Guyana Vice President Bharrat Jagdeo.

This shift mirrors a similar development in neighboring Suriname earlier this week, where Exxon pulled out of an offshore oil block, leaving Petronas as the sole operator of what is considered one of the country’s most promising energy projects.

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As Exxon refocuses its regional strategy, Petronas stands poised to strengthen its position in the energy sector across Guyana and Suriname.

Petroliam Nasional Berhad, known as PETRONAS, is Malaysia’s state-owned multinational oil and gas company headquartered in Kuala Lumpur. Founded in 1974, the company oversees all of Malaysia’s oil and gas resources and operates in over 100 countries, contributing significantly to the nation’s economy.

Ranked 216th on the 2022 Fortune Global 500 list and identified by the Financial Times as one of the “new seven sisters” of influential state-owned oil companies, PETRONAS engages in a wide range of activities. These include upstream exploration, downstream refining, gas processing, LNG marketing, petrochemical production, shipping, and even property investments. From 2015 to 2020, it provided over 15% of Malaysia’s government revenue, underscoring its critical role in the country’s development.