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Pres. Ali hopes Stabroek Block reserves will continue to grow; Exxon moves beyond 8th project
Kaieteur News- Guyana’s head-of-state last Tuesday told delegates at an energy conference held in Houston, Texas, that he hopes the Stabroek Block success continues, which could see the reserves growing and American oil giant, ExxonMobil moving beyond an eight project in that block.
Guyana President Mohamed Irfaan Ali, (right) speaks to S&P Global vice chair Daniel Yergin during the CERAWeek by S&P Global energy conference in Houston, on Tuesday. Photo: CERAWEEK BY S&P GLOBAL
Upstream Online reported that during a discussion at CERAWeek by S&P Global, President Ali made it known that he is thrilled with Guyana’s booming production, which has proven to be a pot of gold for the nation and for Stabroek operator ExxonMobil and its partners Hess and CNOOC International.
Notably, Exxon is the operator of the oil block with 45% interest while Hess and CNOOC hold 30% and 25% respectively. Upstream Online noted in their article that ExxonMobil is projecting its Guyana oil production will swell to 1.7 million barrels per day by 2030. It is also already working on an eighth floating production, storage and offloading vessel for Stabroek. To this end, it was stated that President Ali said he hopes the growth continues “long beyond that”.
To date, Exxon has received regulatory approval for six developments in the Stabroek Block, and have already submitted two applications for a seventh and eight project namely, Hammerhead and Longtail.
“The positive news is that every news so far has been positive. And we are hoping that this trend will continue and our reserves will continue to grow,” President Ali told the energy conference. The Stabroek Block, renowned for its vast oil potential, has been the subject of global attention since oil production commenced five years ago. ExxonMobil’s president had previously stated that the company’s estimate remains below 11 billion barrels of oil equivalent, despite several new discoveries in the block since the previous update in 2022. However, the government disclosed that their figure stands at 11.6 billion barrels. Exxon is currently producing over 650,000 barrels of oil per day (bpd) from Liza 1, Liza 2, and Payara developments, supported by three floating production storage and offloading (FPSO) vessels—Destiny, Unity, and Prosperity. Last year, Exxon announced that since production began in December 2019, it has surpassed 500 million barrels of oil. Exxon’s fourth development, Yellowtail, is expected to come onstream later this year, with the fifth and sixth projects, Uaru and Whiptail, scheduled for startup in 2026 and 2027, respectively. ExxonMobil Guyana President Alistair Routledge had disclosed that nearly 5 billion barrels of oil will be produced from the six approved developments in the Stabroek Block.
The contract that governs this block waives income taxes from Exxon and its partners, allows the oil companies to recover 75% of the revenues to cover cost before the remaining 25% which is considered profit oil is then split 50/50 between Guyana and the oil companies – with Guyana receiving a 2% royalty from the oil companies share.
(Pres. Ali hopes Stabroek Block reserves will continue to grow; Exxon moves beyond 8th project)
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