-ExxonMobil and co-venturers
ExxonMobil Guyana and its Stabroek Block co-venturers, Hess and CNOOC, yesterday announced they had extracted 500 million barrels of oil from Guyana’s offshore Stabroek block and that plans were in place for daily production of 1.3m barrels by the end of 2027.
In a statement yesterday, ExxonMobil and its co-venturers said that “their industry-leading pace of development enabled this production milestone less than five years after Guyana became an oil-producing nation”.
ExxonMobil Guyana 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.”
The statement said that ExxonMobil Guyana, Hess and CNOOC have committed nearly US$55 billion to develop six government-sanctioned projects on Guyana’s offshore Stabroek block. The first three projects – Liza Phase 1, Liza Phase 2 and Payara – are presently averaging more than 650,000 barrels of oil per day in production.
“Plans are in place to grow production capacity to more than 1.3 million barrels of oil per day by the end of 2027, when the ExxonMobil Guyana-led consortium anticipates having all six projects up and running offshore”, the statement said.
It added that oil production will generate tens of billions of dollars of revenue and significant economic development for Guyana. Since first production in December 2019, it said that more than US$5.4 billion in oil revenues and royalties have been paid into Guyana’s Natural Resource Fund. More than 6,000 Guyanese support the Stabroek block operations, which is nearly 70% of the industry workforce locally, it added.
Over the last four years, pressure has grown on the Guyana Government to bring ExxonMobil back to the negotiating table to improve the terms of the widely criticised 2016 Production Sharing Agreement. The government has steadfastly refused to do this. Insurance coverage for any spill or accident in Guyana’s waters has also become a major issue.
ExxonMobil affiliate ExxonMobil Guyana Limited is the operator and holds 45% interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
