Exxon Mobil Corporation (NYSE:XOM) Begins Exploration At Guyana Despite Venezuela Objection

Venezuela likes it or not but Exxon Mobil Corporation (NYSE:XOM) will not stop searching for oil in Guyana located in South America. It is confirmed that the oil giant has begun its exploration drilling at the Stabroek Block, which might upset Venezuela, which has been claiming two-thirds of Guyana as its own. Exxon did not get a smooth start as Venezuela’s government objected against the exploration on land that it claims its own. The $300 million worth exploration project will conclude in 60 days, said the company’s country manager Jeff Simmons.

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Call to reject the deal

Meanwhile, Exxon Mobil Corporation (NYSE:XOM) has come to a settlement with the New Jersey government over environmental issues. The company will pay $225 million to the state, but the settlement has drawn sharp criticism from both the media and the concerned community. A New York Times highlighted that the environmental lawsuit that ran for 11 years and originally sought $9 billion was settled for just as little as $225 million.

At the same time, Bradley Campbell, Commissioner of the state’s Department of Environmental Protection called the deal as an “embarrassment”. There has been a growing pressure from legislators and environmentalists on the state to reject the deal, which fails to reach any amicable settlement.

Costs pressure

Such opposition may not bode well for Exxon Mobil Corporation (NYSE:XOM), which is already struggling with the pressures of lower crude prices and elevated costs. The company has recently sued Worley Parsons Ltd for its platform design that is full of flaws. Despite the struggle, Exxon Mobil Corporation (NYSE:XOM) announced lower spending cut to the tune of 12% in 2015 as compared to its rival small and mid-sized firms. The company has also indicated that it might go in for acquisitions that suit its needs. Experts have named Hess Corp. (NYSE:HES), Continental Resources, Inc. (NYSE:CLR), Apache Corporation (NYSE:APA) and others as key potential target for the company.

Brown Terrel

Brown Terrel

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.