On Tuesday, ExxonMobil Corp. said that the production at its Payara project in Guyana is risking delay as the government review has been dragged by the company’s spending cut.
The startup of the project is scheduled for as early as 2023 with a capacity of 220,000 bpd of crude oil.
The production’s startup could be postponed by 6-12 months as Exxon and its partners, Hess Corp. and China’s CNOOC Ltd. are still waiting for approval from the government to send a third vessel required to begin offshore production.
Exxon is cutting 30% of its capital spending for 2020 as the coronavirus pandemic has battered oil prices and demand.
Guyana’s Director of Energy Mark Bynoe said that some factors are affecting the government’s assessments on Exxon’s Payara field development, including the country’s inconclusive March 2 election.
Meanwhile, Exxon’s shares jumped by 3.9% at USD42.06 at Tuesday’s afternoon trading as investors agreed with the spending cuts.
