Exxon stops drilling in Brazil after finding no oil: report

ExxonMobil has reportedly stopped its drilling in Brazil after its campaign to find oil in the country failed, according to The Wall Street Journal.

The Journal, citing people familiar with the matter, reported that Exxon has quit its offshore drilling in the South American country and relocated engineers and geologists from their Rio de Janeiro offices to other locations in Guyana, Angola and Canada. The sources told The Journal, however, that the company has not ruled out future endeavors in Brazil.

An Exxon spokesperson also said that the company remains involved in Brazil and that the the initial drilling program is “now complete,” according to the report.

“Our initial exploration drilling program in Brazil is now complete,” the spokesperson said. “We continue to work with our co-venturers to analyze the data acquired from the extensive drilling program to assess the potential for future exploration activities in those blocks.”

The Journal also reported that in the Americas, including Brazil, Exxon is planning to spend $25 billion in efforts there.

According to Exxon, the company is one of the largest area holders in Brazil with 4.5 million net acres. It has drilled wells in Campos, Santos and Sergipe-Alagoas Basin, according to the website.

This news comes just a day after Exxon signaled its first quarter operating profits dropped about a quarter from last year’s, Reuters reported.

Exxon had reported record profits in 2022, making $55.7 billion in the last year.