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Guyana’s oil rescues ExxonM from selling off more assets worldwide – 1st Quarter Report reveals
Kaieteur News – Strong advantaged volume growth primarily from Guyana and the Beaumont refinery expansion, and structural cost savings helped to offset lower base volumes from divestments, unfavourable entitlements and government-mandated curtailments, and higher expenses from scheduled maintenance, ExxonMobil Corporation said on Friday in its first-quarter report on its financial returns.
Exxon, unlike its Stabroek Block consortium partners, reported lower than expected earnings globally.
In declaring revenues earned in its financial report yesterday, the corporation said its “first-quarter earnings were US$8.2 billion versus US$11.4 billion in the first quarter of 2023.”
To this end, it was explained that its upstream first-quarter earnings were US$5.7 billion, a decrease of US$797 million compared to the same quarter last year while the prior-year period was also negatively impacted by tax-related identified items.”
According to ExxonMobil, “excluding identified items, earnings decreased US$955 million driven by a 32 percent decrease in natural gas realisations and other primarily non-cash impacts from tax and inventory adjustments as well as divestments.”
To this end, it was observed that net production was 47,000 oil-equivalent barrels per day lower than the same quarter last year “with the growth in advantaged Guyana volumes more than offsetting the earnings impact from lower base volumes due to divestments, government-mandated curtailments and unfavourable entitlement effects.”
According to ExxonMobil, excluding the impacts from divestments, entitlements, and government-mandated curtailments, net production grew 77,000 oil-equivalent barrels per day driven by the start-up of the Payara development in Guyana.
“Payara reached nameplate capacity of 220,000 barrels per day in mid-January, ahead of schedule, demonstrating excellence in project execution and operations,” the report said.
Additionally, the company reported that “advantaged asset volume growth from Guyana provided a partial offset to lower natural gas realisations and lower base volumes due to unfavourable sales timing and entitlement impacts.”
According to ExxonMobil, net production in the first quarter was 3.8 million oil-equivalent barrels per day, a decrease of 40,000 oil-equivalent barrels per day compared to the fourth quarter.
In Guyana specifically, the company reported achieving quarterly gross production of more than 600,000 oil-equivalent barrels per day.
As it relates to ExxonMobil fourth and fifth developments in the Stabroek Block, the company in providing an update said construction is underway on the Floating Production Storage and Offloading (FPSO) vessels for the Yellowtail and Uaru projects, with Yellowtail anticipated to start production in 2025 and Uaru targeted for 2026.
On Friday, this publication indicated that the ExxonMobil Stabroek Block Consortium partners reported better than projected returns on their first-quarter returns.
Hess Corporation—30 percent stakeholder in the Stabroek Block—reported net income, the company said, was US$972M in the three months ended 31 March, compared to $346 million in the first quarter of 2023, according to the company’s latest earnings report.
As such, this would mean that Hess’s profits have almost tripled over the previous reporting period. According to Hess, its overall net production of oil and gas was 476,000 barrels of oil equivalent per day, up 27 percent from 374,000 barrels of oil per day (bpd) in 2023.
The Bakken production surged by 27,000 (bpd), according to Hess, “while Guyana offered up an additional 78,000 (bpd) this quarter.”
The first quarter results “substantially outperformed” expectations, according to a report from analyst firm TD Cowen. Overall production beat projections by 9 percent, while Hess Guyana’s output beat consensus by 28 percent, Cowen noted.
Meanwhile, on Wednesday China National Offshore Oil Company (CNOOC), reported that its first-quarter net profit surged 24 percent to a record, driven by higher realised oil prices and output growth.
Net income for January-March, according to CNOOC, rose to 39.7 billion yuan (US$5.48 billion) from 32.1 billion Yuan in the same period last year. This much is documented in the company’s filing with the Hong Kong Stock Exchange on Thursday.
“CNOOC’s total net production during the period was 180.1 million barrels of oil equivalent (bpd), up 9.9 percent, credited to increased output from the company’s international operations which increased by 16.9 percent, “lifted by higher production in Guyana and Canada.”
As such, the company in January revised its 2024 production target by about 8 percent to a record 700 million to 720 million bpd, while raising the annual capital spending target to new highs.
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