ExxonM produced 500 million barrels of oil Since 2019- Company says

Nov 14, 2024 News

President, ExxonMobil Guyana Limited, Alistair Routledge

Kaieteur News-The operator of the Stabroek Block, ExxonMobil Guyana Limited (EMGL) on Wednesday announced that it has reached 500 million barrels of oil produced since starting up production here five years ago.

The Stabroek Block is estimated to hold some 11.6 billion barrels of oil equivalent. The U.S oil giant holds 45% interest in the block, while its partners Hess Guyana Exploration Ltd. and CNOOC Petroleum Guyana Limited hold 30% and 25% respectively.

Exxon said in a statement, “Their (the Stabroek Block co-ventures) industry-leading pace of development enabled this production milestone less than five years after Guyana became an oil-producing nation.”

For his part, EMGL’s President Alistair Routledge said, “our unrivaled success in developing Guyana’s oil resources at an industry-leading pace, cost and environmental performance is built on close collaboration with the Government of Guyana, as well as our co-venturers, suppliers and contractors.”

He added, “we remain committed to Guyana for the long-term and look forward to continue delivering for the country.” Notably, the statement outlined that Exxon, Hess and CNOOC have committed nearly US$55 billion to develop six government-sanctioned projects in the offshore block.

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.

The first three projects – Liza Phase 1, Liza Phase 2 and Payara are averaging more than 650,000 barrels of oil per day (bpd) in production. The ExxonMobil-led consortium has plans in place to grow production capacity to more than 1.3 million bpd by the end of 2027, when they anticipate having all six projects up and running offshore. This will include the addition of the Yellowtail, Uaru and Whiptail projects.

The Stabroek Block (ExxonM produced 500 million barrels of oil Since 2019)

Moreover, Exxon has already made an application to the Environmental Protection Agency (EPA) for Environmental Authorisation for a seventh project called the Hammerhead.

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.

The daily production capacity being targeted for Hammerhead, 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.

Notably, while Exxon is hoping to get approval for the Hammerhead project by mid-2025, Vice President (VP) Bharrat Jagdeo has said that he had discontinued an advertisement initiated by the Ministry of Natural Resources seeking a consultant to review ExxonMobil’s Field Development Plan (FDP) for the Hammerhead development. He said he made this decision because the information the company presented thus far is incomplete. Meanwhile, the EPA has advanced its part in relation to the application that was made by EMGL for Environmental Authorisation for its seventh project. On November 6, EPA published the Terms and Scope to guide the preparation of the Environmental Impact Assessment (EIA) for the Hammerhead Development.

(ExxonM produced 500 million barrels of oil Since 2019)

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Alistair Routledge, ExxonMobil Guyana, Guyana, oil, Stabroek Block

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