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As Opposition urges moderation, Exxon continues to reach astonishing production levels

Oct 15, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – Opposition Leader, Aubrey Norton has articulated a call for moderation, calling for paced production to develop institutional capacity for oil sector regulation. Norton stated during a press conference, “It is critical to understand that while we want these developments to occur, you have to build institutional capacity to audit, to monitor… We believe that we need to pace it… to do a survey to see what we as a people need, to be able to monitor, evaluate the sector, as well as to ensure that the local content keeps rising rather than declining.”

In contrast, ExxonMobil’s projects, particularly in the Liza Phase One and Liza Phase Two projects, continue to display astonishing production levels. The delayed August oil production data revealed sustained high production, with Phase Two exceeding its initial capacity of 220,000 barrels per day (bpd), even before the planned production optimization activities.

It is maintaining production levels around 250,000 barrels per day. This indicates a potential for even higher production levels after Exxon optimizes the project, raising safety concerns among stakeholders monitoring offshore oil production.

The Payara project is set to further increase oil production. Scheduled to begin production later this year, the Payara project will reach full production capacity by early 2024.

ExxonMobil’s strategy aligns with statements by Chief Executive Officer, Darren Woods that there will be larger projects with higher production capacity to drive down unit costs and enhance cost-effectiveness. Woods highlighted the company’s focus on understanding the resources in the Stabroek Block as a guiding factor for future developments.

He explained to investors, “These bigger production facilities make a lot of sense when you have the resource to support it because it brings your unit cost down, brings down your cost of supply.”

The floating production, storage and offloading (FPSO) vessels being placed offshore Guyana are among the highest producers in the world.

There is a clear dissonance between the Opposition’s call for moderation and ExxonMobil’s high production trajectory. However, Exxon is not a rogue agent. It is being shepherded by Vice President, Dr. Bharrat Jagdeo, who supports accelerated oil production. Jagdeo wants Exxon to drain the oil out from offshore Guyana before the world transitions to cleaner energy sources.

Stakeholders see it as crucial for Exxon ensure that its operations, which have potential for significant ecological impact, comply with the strictest safety protocols. This would minimize the risk of spills, which can be devastating not only for the environment but also for multiple countries. With ExxonMobil ramping up its operations in Guyana, local and regional stakeholders have emphasized that past disasters should serve as a stark reminder and incentive to avoid similar pitfalls.

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