For the second time, Exxon Mobil (NYSE: XOM) failed to make a commercial discovery in the Jabillo-1 well located in the Canje block offshore Guyana after reportedly drilling a dry hole. The company drilled the well up to 6,475 meters but didn’t find any hydrocarbons and will now be plugged.
On the other hand, the Stena DrillMax is operating in the company’s run Stabroek block and is likely to commence drilling Sapote-1 well next month in Canje block’s eastern part, the third block in which the company has an operating interest in Guyana. The Sapote-1 well will assess various Upper cretaceous targets and will one of the largest potential wells drilled by the company on the Canje block.
Shell to exit joint venture with Exxon Mobil
In another development, Royal Dutch Shell Plc is planning to exit its joint venture with Exxon Mobil, Aera, which is a California-based gas and oil-producing entity. In recent months, Shell has been divesting most of its carbon-intensive assets as it looks to focus on renewables and power. The company sold its Washington state refinery to Holy Frontier Corp and its interest in Houston refining its joint venture to Petroleos.
Exxon management to stay the course despite the election of Engine no. 1-backed directors
There has been much fanfare regarding the election of Engine No. 1-backed directors to Exxon Mobil’s board. However, the noise in the election is a distraction from misguided funds that think they know its operation better than its management. Exxon still has nine directors, and it is vital to note that activist investors don’t have a good record in the energy sector. Despite all this, Exxon management is maintaining a course that will include frequent purveying prospective ventures into green ventures.