ExxonMobil banks on Guyana for 20% of its global crude...

ExxonMobil banks on Guyana for 20% of its global crude…

Nov 12, 2019 News

company now offering stock for high interest at rock bottom prices

ExxonMobil stocks during the third quarter for this financial year, have seen its share prices plummet on the world market, to the point where it has begun offering shares at lower rates with higher returns, while banking on Guyana to bring in about 20 percent of its annual crude production in the near future.
According to market reports, the company’s stock is now being offered at a nine-year low, while a dividend yield of 5.2 percent—the highest offer in two decades—is being promised.
In fact, the company has been unable to substantially increase its production in recent years. Output fell from 4.2 million barrels per day in 2012 to 4.0 million barrels per day in 2014 and has remained on a plateau since.
The company is, as such, placing considerable importance on its discovery of more than six billion barrels in the Stabroek Block off the Guyana coast.
While other companies have drilled about 40 dry holes in the area, Exxon boasts an 87 percent exploration success rate.
ExxonMobil has almost doubled its estimated reserves in the area since early 2018, from 3.2 to 6.0 billion barrels now.
The Oil Giant is now poised to produce at least 750,000 barrels per day in Guyana by 2025, which is almost 20 percent of the current output, according to company disclosures.
The company has thus projected a resumption of positive growth, its total output next year, for the first time in more than a decade.
ExxonMobil, as such, is expecting to grow its earnings per share by 135 percent, from $3.59 in 2017 to $8.44 in 2025, assuming an average oil price of $60 in 2025.
Earnings growth is expected to be much higher if the oil price exceeds $60 in 2025.
The company will be taking the first three lifts of crude oil from Guyana’s Stabroek Block when production commences in the coming month from the Liza Destiny, Floating, Production, Storage and Offloading Vessel.
Director of Guyana’s Energy Department, Dr. Mark Bynoe, this past week confirmed that ExxonMobil (Guyana) would be uplifting the first entitlement of crude to be produced by the FPSO.
The parties are expected to conclude a Crude Lifting Agreement (CLA) this week, which aims to articulate the terms and conditions under which ExxonMobil and its partners—Hess, CNOOC-NEXEN, and the Government of Guyana will collect each entitlement of crude.
According to, Energy Director, the agreement not only sets up the schedule for crude cargo lifts based on volume entitlements, but also lays out the strict procedures for efficient crude lifting.

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