Latest update November 26th, 2024 1:00 AM
Exxon to push oil production spree in Guyana, U.S. to net more record-breaking profits
Kaieteur News – As global demand for fossil fuel recovers, ExxonMobil Corporation said it is becoming quite evident that the current supply will not be sufficient; as such, it will continue to make the necessary investments that would leave it well positioned to dominate the market and net more record-breaking revenues for the remainder of 2022.
This much was communicated to shareholders by Darren Woods, Chief Executive Officer (CEO) and Chairman of ExxonMobil on July 29, 2022.
During his company’s second quarter earnings call, the Exxon chief noted that the company broke another record as it made approximately US$17B in profits. Woods said he is determined to replicate this success by growing oil output in the USA and Guyana.
Woods said, “We continued to invest in our portfolio and grew our year-to-date production in the Permian by about 130,000 oil equivalent barrels per day versus the first half of 2021. For the full year in the Permian, USA we expect to achieve 25 percent production growth for the second consecutive year. In Guyana, our total capacity is now more than 340,000 oil equivalent barrels per day. Our Liza Phase One development is producing above design capacity with excellent performance.”
He added, “Liza Phase Two started production earlier this year and has recently reached the design capacity of 220,000 barrels per day.” It should be noted that Exxon has planned a production optimisation programme for Liza Two as well.
ExxonMobil management said overall, it has been a very strong quarter, in both the financial results and in progressing its strategic priorities. As a result, it has been able to distribute US$7.6 billion to shareholders. This was made up of US$3.7 billion in dividends and US$3.9 billion in share repurchases. “With share repurchases of US$6 billion year-to-date, we’re on track with our programme to repurchase up to US$30 billion of shares through 2023, which we announced last quarter. Our strong balance sheet and cash position serves us well in times of uncertainty and positions us to continue to invest through the cycles,” the company stated.
SANCTIONED STABROEK BLOCK PROJECTS
The Liza Phase One development, which began production in December 2019, reached its new production capacity of more than 140,000 gross barrels of oil per day in the second quarter of 2022 following production optimisation work on the Liza Destiny floating production, storage and offloading vessel (FPSO).
For the Liza Phase 2 development which achieved first oil in February 2022 utilising the Liza Unity FPSO, it reached its production capacity of approximately 220,000 gross barrels of oil per day last month.
The third development at Payara is on track to come online in late 2023 utilising the Prosperity FPSO with a production capacity of approximately 220,000 gross barrels of oil per day.
The fourth development, Yellowtail, will be the largest development to date and is expected to come online in 2025, utilising the ONE GUYANA FPSO with a production capacity of approximately 250,000 gross barrels of oil per day.
At least six FPSOs with a production capacity of more than one million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop gross discovered recoverable resources.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator in the Stabroek Block and holds a 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
A call for more cultural centres
…Peeping Tom Kaieteur News- Burnham’s decision to divert the Indian Immigration Fund towards constructing the National... more
Rising Gun Crimes in the Caribbean: Urgent Action required by all
By Sir Ronald Sanders Kaieteur News – There is an alarming surge in gun-related violence, particularly among younger... more
Weekend Cartoon
