ExxonMobil to Withdraw from Oil and Gas Field Joint Venture in Colombia, Prompting Investor Concerns

Texas [US]: ExxonMobil has recently announced that it will withdraw from its joint venture operating agreement for an oil and gas field in Colombia by May 31, as shared by the partner company, Sintana Energy. This decision comes only weeks after the company withdrew from a considerable project in Brazil. As per the regulatory filing made by Sintana Energy, ExxonMobil stated its subsidiary Patriot Energy Oil and Gas that its decision to withdraw from the agreement was based on the terms of the Joint Operating Agreement between them.

ExxonMobil has announced that it will be withdrawing from the Joint Operating Agreement (JOA) and Contract with Agencia Nacional de Hidrocarbones, the regulatory agency in Colombia. The withdrawal will become effective only after the necessary government approvals are obtained. The affected property is the VMM-37 block; a 43,158-acre property located in the Middle Magdalena Valley Basin. ExxonMobil has been a partner in the VMM-37 block for over a decade. The management team is currently seeking legal and technical advice to address this unforeseen development.

ExxonMobil's recent actions have raised concerns among investors. It was reported that the company withdrew from a block in Colombia after years of failing to find significant oil reserves offshore Brazil.

Moreover, its upcoming annual general meeting is facing scrutiny over its climate ambitions. Legal and General Investment Management and Christian Brothers Investment Services are co-filing a shareholder resolution to urge Exxon to reveal more information on potentially stranded assets post-energy transition. The groups are requesting that Exxon's board align their asset retirement obligations with the International Energy Agency's net-zero emissions targets.