‘Our objective is to fill up those boats’

Mar 07, 2022 News

– Exxon VP says company to produce more, faster in Guyana

Kaieteur News – With an initial target set at one million barrels per day from the Stabroek Block from 2027, US Oil Major last Wednesday revised this to 1.2 million barrels daily from that year.
The company began production back in 2019 with the Liza Destiny Floating Production Storage and Offloading (FPSO) at a capacity of 120,000 per day. This was complemented this year when its second FPSO—the Liza Unity—began production earlier this year with a design capacity of 240,000 barrels daily.

Senior Vice President of ExxonMobil, Neil Chapman

A third vessel Payara is currently under construction, with the company already working full speed ahead to get a fourth production up and running with the Yellowtail Development.
The news to increase its earlier estimates of production from Guyana was confirmed by the company’s senior Vice President, Neil Chapman, who during an earnings call informed analysts that “Clearly our objective is to fill up those boats.”

Chairman and Chief Executive Officer, Darren Woods, during that shareholder activity, in his report noted that “We are focused on leading the industry in safety, reliability, environmental performance, earnings and cash flow growth – and ultimately shareholder returns.”
It was reported too that the company plans for the year include annual structural reductions of US$9B a year by 2023, compared to 2019, building on US$5B annual structural reductions achieved to date.
“These savings and other improvements, including a streamlined organizational structure, will enable ExxonMobil to double earnings and cash flow potential by 2027 versus 2019, reduce breakeven costs by roughly $10 per barrel, boost returns on capital employed, and sustainably grow total shareholder returns and distributions,” the official said.
Exxon THROUGH ITS Subsidiary, Esso Exploration and Production Guyana Limited along with and partners Hess Guyana Corp and China National Offshore Oil Company Ltd have been working assiduously in Guyana with some 23 commercial discoveries to date, amounting to in excess of 10 billion barrels of recoverable oil.
Exxon reminded during its shareholder activity that it can drill in Guyana around ten new exploration wells in 2022 and another ten next year. Earlier this year, Exxon started a new production vessel [the Liza Unity FPSO] that brought the country’s total capacity to more than 340,000 barrels per day. According to officials, to improve future earnings, ExxonMobil is upgrading its portfolio with low-cost-of-supply opportunities by investing in advantaged assets, including Guyana.

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