Record-setting deep-water developments in Guyana are some of best in history – Exxon’s CEO

…says projects were delivered safely, ahead of schedule & below budget

Guyana is presently the most prolific, per capita, oil producer in the world and according to ExxonMobil Chairman and Chief Executive Officer (CEO) Darren Woods, the country could be one of the very best in the history of oil and gas since oil was first drilled in the 19th century.
Woods made these comments during a recent interview on CNBC, where he was asked to comment on the current arbitration challenge launched by Exxon, following its Stabroek Block partner Hess attempting to sell its share to Chevron. Woods noted the benefits of oil exploration and production in Guyana, in highlighting why Chevron would want to buy into the block.

“If you look at Guyana and the development there, I think it will go down as one of the best deep-water developments in the history of the industry. So, a lot of value has been created through the hard work of the partners, but specifically with our engineering and projects organisation,” Woods said.
Be that as it may, Woods reinforced that based on the partnership agreement between Exxon and Hess, his company is supposed to have first rights to any buyout. He also illustrated the great things the partnership has been able to achieve in the Stabroek Block and noted that Exxon is merely seeking to protect its partnership rights.
“I think a great example of the capabilities of this organisation and each of the different sectors coming together, our operations, our project, coming together and making these things possible. And deliver these projects at an industry-leading pace, ahead of schedule, below budget.”
“When we bring them on, the operation team starts optimising and we tend to reset what we think is possible. And very safely raise the production, to the point where we are running those three ships, production units, at a rate higher than we made the investment decision at.”
Expressing pride in these accomplishments, Woods also pointed out that they have three more Floating Production Storage and Offloading (FPSO) ships in the works… a reference to the ONE GUYANA, Errea Wittu and Jaguar FPSO’s being built for the next three developments.
“We’re extremely proud of that. Plus, we have three more in the works, that we feel extremely proud about. So, this is a tremendous example of what the organisation is capable of doing,” Woods said.
The Stabroek Block is 6.6 million acres (26,800 square kilometres). Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), holds 45 per cent interest in the block. Hess Guyana Exploration Ltd. holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
ExxonMobil has said it anticipates at least six projects offshore Guyana, including the Whiptail project, will be online by 2027. Production has already started on the Liza Phase 1 and 2 projects, as well as the third development, Payara. Yellowtail and Uaru, Exxon’s fourth and fifth developments, have already received governmental approval.
Only recently, the Whiptail Development project also received approval from the government. Whiptail is expected to add approximately 250,000 barrels of daily capacity by the end of 2027, when it is slated to come on stream, thus bringing the country’s production capacity up to approximately 1.3 million barrels per day. The multi-billion-dollar Whiptail project, which is expected to last for at least 20 years, would include up to 10 drill centres with 48 production and injection wells.
Currently, the combined Payara and Liza Phase One and Two projects are producing over 550,000 barrels of oil per day. Additionally, these projects are expected to reach over 600,000 barrels per day later this year, with the Payara project itself expected to reach 220,000 barrels in the first quarter of 2024.