Exxon Mobil Corp. (NYSE: XOM) announced Friday it will be investing $4.4 billion to develop part of the Liza oilfield off the coast of Guyana.
According to a Reuters report, Exxon's decision shows that oil companies remain interested in large projects, especially offshore, even in an era of belt-tightening after two years of low crude prices.
The Guyana announcement from Exxon and partners Hess Corp. (NYSE: HES) and CNOOC Ltd. (NYSE: CEO) was the fifth deep-water project to gain approvals this year. BP Plc (NYSE: BP) and Reliance Industries said on Thursday they would spend $6 billion to develop natural gas reserves off the Indian coast.
Exxon, which spent nearly $7 billion earlier this year to more than double its holdings in the Permian shale formation in the United States, said the Guyana project was approved due in part to its low cost of production, Reuters reports
“We’re excited about the tremendous potential of the Liza field and accelerating first production through a phased development in this lower cost environment,” said Liam Mallon, president, ExxonMobil Development Company. “We will work closely with the government, our co-ventures and the Guyanese people in developing this world-class resource that will have long-term and meaningful benefits for the country and its citizens.”