Exxon says oil production in Guyana increased by 60% since last year

Nov 02, 2024 News

– reveals Stabroek Block among three operations that drove US$2.8B improvement in third quarter earnings

ExxonMobil Corporation Chief Executive Officer (CEO), Darren Woods (Exxon says oil production in Guyana increased by 60% since last year)

Kaieteur News- United States oil giant, ExxonMobil Corporation has reported a significant boost in its oil production, with a 60% increase year-over-year in Guyana, marking a notable contributor to its US$8.6 billion in earnings for the third quarter of 2024.

During Exxon’s quarterly earnings call on Friday, Kathryn Mikells the company’s Chief Financial Officer (CFO) underscored the impact of Exxon’s diverse portfolio and its growing operations in Guyana.

“ExxonMobil continues to deliver industry leading results, earning US$8.6 billion in the third quarter, and once again, demonstrating the strength of our portfolio and how our enterprise-wide transformation has improved the earnings power of the company across all of our businesses,” Mikells said.

She explained that Exxon has been focused on reducing costs, investing in high-return projects, and selectively divesting non-strategic assets.

Mikells disclosed that oil production from Guyana’s Stabroek Block where Exxon has discovered approximately 11 billion barrels of oil equivalent, has increased by more than 60% year over year. “Following the scheduled work on Liza Phase One and Liza Phase Two, to facilitate the gas to energy project tie in, we were able to ramp back up to record gross production levels in September,” she added.

According to Mikells, this quarter Exxon delivered its highest liquids production in over 40 years. This achievement she underscored was driven by advantaged growth from both the Permian and Guyana operations. “Our growth in advantaged volumes is delivering higher profitability to our bottom line at constant prices, average profit per barrel has doubled over the past five years,” she said.

Guyana’s Stabroek Block that Exxon holds 45% interest

Moreover, Mikells stated that Exxon’s strategy to improve earnings by driving production from their advantages assets “really comes to life in our results.”

According to her the combination of Guyana’s Payara project startup, the addition of Pioneer and growth in their Permian assets drove a US$2.8 billion improvement in earnings. Notably Mikells said, “The portfolio of advantaged assets we have built in our upstream business is the envy of the industry.”

Moreover, CNBC reported that during the company’s programme “Squawk Box”, Chairman and Chief Executive Officer (CEO) of Exxon, Darren Woods said, “This quarter is one of the best third quarters we’ve had in the past decade.”

“In the upstream, we see record volumes coming from our advantaged assets like Guyana and the Permian,” Woods told CNBC.

“Our industry-leading results continue to demonstrate how our enterprise-wide transformation is improving the structural earnings power of the company,” he added.

ExxonMobil Guyana operation

ExxonMobil Guyana Limited (EMGL) is the operator of the Stabroek Block. The U.S oil giant holds 45% interest in the block, while its partners Hess and CNOOC hold 30% and 25% respectively.

Exxon 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. Currently, there are three Floating Production, Storage, and Offloading units (FPSOs) operating in the Stabroek Block. The Liza Destiny, Liza Unity, and Prosperity FPSOs are currently producing a combined 650,000 barrels of oil per day (bpd).

The Liza 1 project, utilising the Liza Destiny vessel, was initially designed for production of 120,000 barrels per day (bpd), later optimised and is currently producing 157,000 bpd. The Liza Unity FPSO, which started in February 2022 with a capacity of 220,000 bpd, was also optimised. Recently, Exxon disclosed that this vessel is producing 252,000 bpd but disclosed that there are plans to hit a daily output of 270,000 bpd.

The Prosperity vessel operating in the Payara Project, began production in November 2023, and had a quick increase in its production. The vessel reached 100,000 bpd in November, and then exceeded 180,000 bpd by the end of December. This vessel’s current authorized production capacity is 252,000 bpd.

(Exxon says oil production in Guyana increased by 60% since last year)

Darren Woods, ExxonMobil Cooperation, Guyana, o, Stabroek Block

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