By: Carl Surran, SA News Editor
https://seekingalpha.com/news/3911716-exxon-mobil-aiming-to-end-oil-production-in-equatorial-guinea-report?utm_medium=referral
Exxon Mobil (NYSE:XOM) will wind down oil production in Equatorial Guinea and leave the country after its license expires in 2026, Reuters reported Monday.
An exit would reflect a wider move by major oil producers to reduce crude production in West Africa - which is considered a high-cost region where carbon emissions also are a problem - and shift investments to more lucrative projects in the Americas.
Exxon (XOM) has cut production in Equatorial Guinea to less than 15K bbl/day, according to the report, after peaking at more than 300K bbl/day eight years ago.
The company has decided to decommission its Zafiro offshore production platform and tow it away, possibly next month, as future revenue from the platform would not have covered the cost of repairs, the report said.
Exxon Mobil (XOM) "continues to win and will likely continue winning" because of how the company is handling supply, John Rhodes writes in an analysis published recently on Seeking Alpha.