- Exxon told Bloomberg that it will transfer its holdings in Equatorial Guinea to the government.
- Exxon added that the exit was part of the company’s long-term strategy.
Exxon has announced that the firm is leaving Equatorial Guinea before the end of Q2/2024 after a three-decade presence in the Central African country. Exxon told Bloomberg that it will transfer its holdings in the country to the government.
The firm said it will focus now on a safe handover of operations and caring for all impacted by this change. The oil firm also added that the exit was part of the company’s long-term strategy.
That strategy focuses on investments in the lowest-cost and fastest-growth locations, and these locations include Guyana and the Permian. The director of Rice University’s Center for Energy Studies at the Baker Institute in Houston, Ken Medlock, said uncertain regulatory regimes and political stability must have been among the factors Exxon considered before deciding what to do with its Guinea business.
He noted, “If those risks are major, companies could pack up and leave if they have other opportunities with a better risk-reward profile.”