GEORGETOWN, Nov 21 (Reuters) - U.S. oil major Exxon

Mobil ( XOM ) has pulled out of negotiations with Guyana's

government on terms for exploring and developing a shallow-water

block, the South American country's vice president said on

Thursday.

Exxon, U.S.-based Hess Corp ( HES ) and China's CNOOC

won block S8 in a bidding round launched in late

2022. They had been engaged in negotiations for non-fiscal terms

of the project.

The company had wanted to use the offshore area for carbon

capture, Vice President Bharrat Jagdeo told reporters in a

briefing. It was not immediately clear if Hess and CNOOC

continue in talks with the government for the area.