Latest update November 21st, 2024 1:00 AM
Guyana’s oil helps ExxonMobil with record-shattering US$19B earnings in 2022 third quarter
Kaieteur News – American oil giant, ExxonMobil Corporation yesterday announced that its third-quarter 2022 earnings was a record-shattering US$19.7 billion, or US$4.68 per share. This was also a significant increase over its earnings in the previous quarter which totaled a whopping US$17.9B.
Chair and CEO of ExxonMobil, Darren Woods
It said third-quarter results included US$1B in earnings from divestments of assets in Canada and Romania.
Exxon was keen to note that its earnings also benefited from higher production volumes in its advantaged assets in Guyana as well as the Permian Basin in the USA. It said the Permian delivered record production in the quarter of nearly 560,000 oil-equivalent barrels a day.
Offshore Guyana, Exxon said the quarterly average gross production increased to nearly 360,000 oil-equivalent barrels per day, with the Liza Phase One and Liza Phase Two production exceeding design capacity by more than 15,000 barrels per day.
In addition, it said there were two new discoveries in the Stabroek Block at the Sailfin-1 and Yarrow-1 wells, adding to the company’s extensive portfolio of development opportunities.
Kaieteur News previously reported that the Yarrow-1 well encountered approximately 75 feet (23 meters) of high quality oil bearing sandstone reservoirs. The well was drilled in 3,560 feet (1,085 meters) of water and is located approximately 9 miles (14 kilometers) southeast of the Barreleye-1 discovery.
The Sailfin-1 well encountered approximately 312 feet (95 meters) of high quality hydrocarbon bearing sandstone reservoirs. The well was drilled in 4,616 feet (1,407 meters) of water and is located approximately 15 miles (24 kilometers) southeast of the Turbot-1 discovery.
The Banjo-1 exploration well was drilled earlier in the third quarter and did not encounter commercial quantities of hydrocarbons.
“Our strong third-quarter results reflect the hard work of our people to invest in and build businesses critical to meeting the demand we see today,” commented Darren Woods, Chairman and Chief Executive Officer.
He added, “We all understand how important our role is in producing the energy and products the world needs, and third-quarter results reflect our commitment to that objective. The investments we’ve made, even through the pandemic, enabled us to increase production to address the needs of consumers.”
Woods also said that rigourous cost control and growth of higher-margin petroleum and chemical products also contributed to earnings and cash flow growth in the quarter. At the same time, Woods said Exxon is expanding its Low Carbon Solutions business with the signing of the largest-of-its-kind customer contract to capture and permanently store carbon dioxide, thereby demonstrating its ability to offer competitive emission-reduction services to large industrial customers around the world.
Exxon and its co-venture partners, Hess Corporation and CNOOC Petroleum Limited currently have four sanctioned developments on the Stabroek Block. The Liza Phase One and Phase Two developments are currently operating at their combined gross production capacity of more than 360,000 barrels of oil per day. The third development at Payara is on track to come online at the end of 2023 utilizing the Prosperity FPSO with a production capacity of approximately 220,000 gross barrels of oil per day.
The fourth development, Yellowtail, is expected to come online in 2025, utilizing the ONE GUYANA FPSO with a production capacity of approximately 250,000 gross barrels of oil per day.
A Plan of Development is expected to be submitted to the Government of Guyana before year end for a fifth development, Uaru, which is expected to come online at the end of 2026 with a gross production capacity of approximately 250,000 barrels of oil per day.
The Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.
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