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Before year-end ExxonM to hit 500M barrels since production started in 2019 – Exxon VP
Before year-end ExxonM to hit 500M barrels since production started in 2019
Kaieteur News – ExxonMobil Guyana Limited (EMGL) is looking to hit 500 million barrels of oil before the end of 2024, since oil production started in the Stabroek Block offshore Guyana in December 2019.
EMGL’s Vice President and Business Services Manager, Phillip Rietema
This is according to information presented by EMGL’s Vice President and Business Services Manager Phillip Rietema, at the recently concluded International Business Conference (IBC), that was held at the Guyana Marriott Hotel.
Exxon is the operator of the Stabroek Block which is estimated to hold 11.6 billion barrels of oil, according to figures disclosed by the Government of Guyana (GoG). The U.S oil giant holds 45% interest in the block, while its partners Hess and CNOOC hold 30% and 25% respectively.
Oil was discovered in the Stabroek Block in 2015. The following year, the previous Coalition Government signed a Production Sharing Agreement (PSA) with Exxon. That deal waives all taxes and caters for it to be paid by the government out of its share. Guyana receives a 2% royalty; it allows Exxon and its co-venturers to recover up to 75% of production costs before the remaining 25% is shared between Guyana and the Stabroek Block partners. After accounting for the 2% royalty, cost recovery, and profit sharing, Guyana’s total take from the oil produced is 14.5% of the total value of the oil.
With six deepwater projects in the Stabroek Block already receiving regulatory approval from the government, by mid-2025 Exxon is hoping to get approval for its seventh project, Hammerhead. Rietema made the disclosure during his address at the conference. He said, “We have six sanctioned projects, just (to) put it in context. I don’t think there’s anywhere in the world where we’ve been able to go so quickly from discovery to production to now six sanctioned projects.”
Since making its first discovery in 2015, he underscored that Exxon has transitioned from exploration to production in record time. Currently, Exxon is producing over 650,000 barrels of oil per day (bpd) from Liza 1, Liza 2 and Payara developments which are supported by three floating production storage and offloading (FPSOs) namely, Destiny, Unity and Prosperity.
Rietema also noted that the company has three more projects to come online in the coming years. “These are renderings of the third, the fourth, fifth and sixth FPSOs for those projects that are scheduled to come online in 2025 and then two in 2027,” Exxon’s VP said.
He also spoke about the company’s seventh project. “If you’ve been reading the news here in Guyana, we’ve also announced that we’re planning for a seventh project on the Hammerhead discovery. The regulatory reviews on the environmental side are underway, and we’re hoping to receive regulatory approval by the middle of next year,” the EMGL official said. Hammerhead was announced as Exxon’s ninth commercial discovery in August 2018. The Hammerhead-1 well was drilled in a new reservoir, encountering approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 feet (4,225 meters) depth in 3,773 feet (1,150 meters) of water. The project will target between 120-180 thousand barrels per day (kbd). Exxon is aiming to commence production activities by 2029, following the requisite approvals.
Notably, the daily production capacity being targeted is significantly lower compared to the last three projects sanctioned, which each target over 200 kbd. Hammerhead-1 is located approximately 13 miles (21 kilometers) southwest of the Liza-1 well and follows previous discoveries on the Stabroek Block at Liza, Liza Deep, Payara, Snoek, Turbot, Ranger, Pacora and Longtail. Back in April, Exxon received green-light from the EPA as well as blessings from the government to develop a sixth deep water project, Whiptail.
(Before year-end ExxonM to hit 500M barrels since production started in 2019)
- Exxon, Government of Guyana, Guyana, ice President and Business, Marriott hotel, oil, Phillip Rietema, Services Manager Phillip Rietema, Stabroek Block
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