ExxonMobil driller earned US$703M from Guyana in 2023

Feb 25, 2024 ExxonMobil, News, Oil & Gas

– earnings from here higher than U.S., Norway, and Australia

Kaieteur News – In its 2023 Annual Report, Noble Corporation plc, a leading contractor of ExxonMobil disclosed that it garnered an astounding US$2.6 billion in revenues in 2023 across all the countries in which it operates. From Guyana, Noble earned US$703 million, the highest amount among countries, including the US, Norway and Australia.

“Operations in Guyana, the Gulf of Mexico, and the North Sea accounted for approximately 27.2%, 16.9%, and 17.0%, respectively, of our consolidated operating revenues for the year ended December 31, 2023,” Noble stated.

The fiscal milestones achieved in Guyana can be attributed to Noble’s Commercial Enabling Agreement (CEA) with ExxonMobil Guyana, under which the company has been operating four state-of-the-art drillships: the Noble Tom Madden, Noble Sam Croft, Noble Don Taylor, and Noble Bob Douglas. These vessels have been exploring the Stabroek Block. The extension of the contract duration for these drillships, from the fourth quarter of 2025 to the second quarter of 2027, as announced last year, guarantees a steady revenue stream for Noble from Guyana for several years.

Guyana is continuing to hold growing strategic importance for Noble among the jurisdictions in which it operates. The country’s prominence in Noble’s operations was further highlighted by a comparison with the 2022 earnings, where Guyana also stood out as a key revenue generator, contributing US$469 million (33%) of the total revenues.

A 2023 report by Wood Mackenzie, a global research and consultancy group, had shown that rig/drillship utilisation returned to pre-COVID levels, driving rates up. Wood Mackenzie had reported that by the end of 2023 rates were expected to be at US$500,000/day or above for highly-prized, advantaged ultra-deepwater rigs. Such developments signify a robust demand for drilling services, buoyed by the steady tightening of offshore drilling fundamentals, which presents attractive contract opportunities for firms like Noble.

Notably, owing to the 2016 Production Sharing Agreement (PSA) Guyana signed onto with Exxon – all of the company’s expense will be recovered. Under the deal, Exxon receives profits after 75 percent is withdrawn to cover its expenses, which includes monies paid to its contractors.

The four noble drillships are contributing to drill in the Stabroek Block. Exxon has already made more than 35 discoveries in the Stabroek Block and is currently executing a 35-well drill campaign there. It also has asked the Environmental Protection Agency (EPA) for approval to drill 12 wells in the Canje Block.

In addition to exploration and appraisal drilling, Exxon is undertaking development drilling for the Payara, Yellowtail, and Uaru projects, making 2024 one of the busiest years for offshore drilling activities in Guyana. This flurry of activities is supported by six drillships contracted by Exxon to operate offshore Guyana, four of which are provided by Noble, with the remaining two supplied by Stena Drilling.

During his address at the opening of the 2024 Guyana Energy Conference and Supply Chain Expo, ExxonMobil Upstream President, said, “Six drilling rigs and their crews are at work every single day 24/7 throughout the block, drilling and exploring, preparing Yellowtail and Uaru for startup tirelessly developing the existing resource base and seeking to find even new discoveries.”

Australia, ExxonMobil, Guyana, Norway, U.S

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