The Strategist

ExxonMobil to curtail oil prospecting campaign in Brazil

04/06/2023 - 11:38

U.S. ExxonMobil will end its unsuccessful search for oil in Brazil, reports The Wall Street Journal (WSJ), citing sources.

Mike Mozart
Mike Mozart
The newspaper reported, citing sources familiar with the situation, that "Exxon Mobil Corp. has stopped a major oil prospecting campaign in Brazil after the multibillion-dollar project brought it nothing but a few disappointing wells." The company has already stopped drilling in its offshore areas.

ExxonMobil's CEO, Darren Woods, reportedly referred to Brazil as one of the main "opportunities for its growth" in December, but as the sources point out, the company has since relocated its geologists and engineers from Rio de Janeiro to a number of other nations, including Angola, Guyana, and Canada.

The business has not been inviting bids from drilling contractors for exploration work in the area after April 2022, when the most recent contract expired, according to analysts contacted by the WSJ.