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Guyana’s oil critical for Exxon’s increased global production — Darren Woods
By Gary Eleazar
Kaieteur News – US based oil giant, ExxonMobil, has in recent years positioned itself as one of the largest international oil companies in the world and with its recent dumping of assets across the world, the company is eyeing critical operations in order to meet its projected targets while earning a decent profit for shareholders.
ExxonMobil CEO, Darren Woods
This is according to its Chief Executive Officer, Darren Woods who during the company’s annual meeting of shareholders this past week, reiterated that in the near term, ExxonMobil is increasing production of the energy resources and products the world needs.
He cited as example, “in Guyana, the company has two oil fields in production and two more in development, and made new discoveries that increased the estimated recoverable resource to nearly 11 billion barrels of oil equivalent.”
During that meeting it was noted that future plans include structural cost savings of US$9B per year by 2023, compared to 2019, and more than US$15B of investments through 2027 on initiatives to lower greenhouse gas emissions.
They include, according to Woods, investments to reduce emissions from company operations and to advance critical technologies like carbon capture and storage, hydrogen and bio-fuels, which together are expected to develop into multi-trillion-dollar markets in the decades ahead.
Long-term, he said, “…we have the portfolio flexibility necessary to pace our investments consistent with advancements in technology, markets and supportive policy.”
Woods told shareholders, “…as we move forward, we’ll remain focused on executing our strategy, sustainably growing value across a broad range of scenarios and time horizons, and importantly, leading the industry, now and through the energy transition.”
Woods in his report to shareholders noted that the company is presently focused on five key strategic priorities to sustainably grow shareholder value.
He noted that these include leading the industry in financial, operational and environmental performance, including across key metrics of safety, reliability, greenhouse gas emissions intensity reductions, earnings and cash flow growth.
According to Woods, the company is also looking towards “upgrading the company’s advantaged portfolio to ensure it leads competition and delivers value across a range of external environments and through volatile and evolving markets,” among other objectives.
ExxonMobil currently has an installed production capacity of 360,000 barrels of oil per day (bpd) in Guyana’s Stabroek Block.
Production in Guyana began with the Liza I Field in the Stabroek Block using the Liza Destiny, Floating Production Storage and Offloading (FPSO) vessel with an installed capacity of some 120,000 bpd.
That vessel commenced production in December 2021 with a second FPSO, which came on stream earlier this year, with an installed production capacity of 240,000 bpd.
It was noted that two other large projects are currently in various stages of development including the Payara and the Yellowtail project.
Additionally, the ExxonMobil subsidiary in Guyana Esso Exploration and Production Guyana Limited—the Stabroek Block Operator—has already submitted an application for environmental permission in pursuing another project Urau.
This publication had recently reported that while ExxonMobil in recent years had maintained that its projected estimated oil production from the Stabroek Block would be just about 750,000 barrels per day (bpd) in 2026, this has since been revised upwards.
As such, it would mean that the US oil major has brought forward its production levels schedule in Guyana, with an aim to now be producing more oil, faster than initially planned.
With the coming on stream of the Payara development, using the Prosperity, Floating Production Storage and Offloading (FPSO) vessel, production in country would be boosted by another 220,000 bpd.
This would bring the country’s capacity to 550,000 bpd when that comes online in 2024.
With the Yellowtail development now disclosed at a capacity of 250,000 bpd and first oil set for the end of 2025, it would bring the country’s daily production capacity to 800,000 bpd.
The Liza Destiny—pending re-installation of its repaired flash gas compressor—will be running at above nameplate capacity at 130,000 bpd or 10,000 bpd more, which collectively would account for likely 810,000 bpd being produced at the end of 2025, by the ExxonMobil-led consortium.
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