Guyana’s oil generating US$1.5B a month from three projects – Exxon’s Vice President

Jul 03, 2024 News

Kaieteur News – During a recent episode of the Energy Perspectives Podcast, Phillip Rietema, Vice President and Business Services Manager of ExxonMobil Guyana Limited (EMGL), revealed that Guyana’s oil industry is generating over US$1.5 billion monthly from its three operational oil projects in the Stabroek Block.

Phillip Rietema, Vice President and Business Services Manager of ExxonMobil Guyana Limited (EMGL)

ExxonMobil is the operator of the lucrative block along with its partners, Hess and CNOOC. Today, ExxonMobil, Hess, and CNOOC operate three projects – Liza One, Liza Two and Payara – producing over 600,000 barrels of oil daily. Guyana’s oil production comes from three floating production, storage, and offloading (FPSO) vessels: Liza Destiny, Liza Unity, and Prosperity.

EMGL Vice President stated, “…from that first discovery in 2015, [then] we have first production and here we are just four years later, with three projects online.”

Since 2015, ExxonMobil and its partners have made more than 30 additional offshore oil and natural gas discoveries within the Stabroek Block.

The revenue generated from the current production level stands at US$1.5 billion per month.

“At current prices, which you can see reflected in our financial report, the revenue generated is over 1.5 billion US dollars a month currently,” Rietema said.

Based on Rietema’s disclosure oil operations should generate about US$18 billion this year. Notably, these funds are shared among government and the Exxon-led consortium.

FPSO Prosperity

However, this year, Guyana expects to receive approximately US$2.1 billion from oil exports and US$320 million from royalties. In accordance to the oil deal, Exxon recovers 75% of the revenue to cover cost and the remaining 25% is shared 50-50 between the oil companies and the government. The oil companies then pay Guyana a 2% royalty on the country’s oil resources from their share of the profits.

Looking ahead, Rietema outlined plans for the Stabroek Block, for three additional projects—Yellowtail, Uaru, and Whiptail. ExxonMobil anticipates a production capacity exceeding 1.3 million barrels per day by the end of 2027. He continued, “and if you look at production over a million barrels a day at current prices, that’s annual revenues north of 30 billion US dollars, which will be shared again with the people of Guyana and in our group.”