–ExxonMobil Chairman says
–Guyana accounts for 11 per cent of global oil finds since 2015
GUYANA accounts for more than 11 per cent of the world’s oil finds since 2015, according to Chairman of ExxonMobil, Darren Woods.
Woods, in his address to persons gathered at the Marriott Hotel for Guyana’s flagship International Energy Conference and Expo, said that this amount could increase in the near future, since parts of the local basin remain unexplored, and are still considered frontier locations.
The company’s chairman described Guyana’s oil-and-gas sector as one of “the most exciting and successful” deep-water developments in the world.
“It’s truly remarkable how far we’ve come since we signed the production sharing contract for the Stabroek Block in 1999. “That first step was the beginning of Guyana’s future as an energy powerhouse; it led to the first discovery in 2015 at the Liza One well. We all know what followed; it was a remarkable find that opened the door to more than 20 significant discoveries, and one of the world’s largest oil fields,” Woods related.
He said that based on current research, it is estimated that the block holds more than 10 billion oil equivalent barrels.
The company’s first project, Liza Phase One, began producing oil within five years of discovery, a fraction of the time it typically takes to bring a newly discovered field of this size to production.
To this end, Woods related that the progress achieved in Guyana marks “unmatched success” in modern history.
According to Woods, Guyana’s production from the Stabroek Block alone could increase to more than one million barrels per day, with the potential for additional growth as a result of ongoing exploration.
With this in mind, the company plans to continue investing heavily in its operations in order to stimulate growth in the oil-and -gas sector.
Just over two years after the Liza Phase One began production, the Liza Phase Two started producing, with the company’s third project, Payara, not far behind.
Woods said that the construction of the hull for Exxon’s fourth production vessel, the Yellowtail project, is complete, and the company expects to reach a final investment decision soon.
“These world-class projects are just the beginning; we anticipate having six projects producing by 2027, and see the potential for up to four more in later years. This progress is virtually unprecedented; in just 15 years, Guyana’s production has gone from nothing to potentially more than one million barrels per day. This is an incredible accomplishment, and one in which we should be very proud,” the company top-brass said.
LOCAL CONTENT
He added, however, that even as the company continues to expand its operations here, locals play a major role in the company’s sustainability within the oil-and- gas sector.
Woods said that ‘Exxon’, since setting up its operations here, has employed more than 3,500 Guyanese, and worked with 800 local suppliers.
“From the very beginning, we worked together to ensure that our activities had far-reaching and enduring benefits for the country and its people. We believe it’s vitally important that benefits are widely shared. This includes increasing the capabilities of the local workforce and building new infrastructure,” the ExxonMobil Chairman related.
He said that ExxonMobil itself has invested in, and supports several government projects that cater to ensuring that Guyanese benefit from the oil-and-gas sector. Woods related that in 2021, the company launched a $100 million commitment to support local capacity building programmes.
That project, called “the Greater Guyana Initiative”, is a 10-year one, that, in its first phase, will provide funding for significant expansion of the Centre for Local Business Development. Technical, education and training programmes and support to the University of Guyana are also being facilitated by the Greater Guyana initiative.
“We’re hopeful that these efforts will continue to expand the growing opportunities for Guyanese workers. It’s important that this progress continues, and I know, from discussions with President Ali and Vice-President Jagdeo, that it’s a very high priority for them. Increasing local participation through capacity building is a key component of the value our industry brings to Guyana,” Woods said.
ExxonMobil, in late 2021, won the “Excellence Award” for Corporate Social Responsibility from the World Petroleum Congress for its capacity building efforts.
Another local-content initiative catering to the people of Guyana, which has the support of ExxonMobil, is the gas-to-energy project which will transport up to 50 million cubic feet of natural gas per day, by pipeline, from Liza Phases One and Two to processing facilities onshore.
This new domestic natural gas supply would provide a lower-emission source of energy, and significantly reduce the cost of electricity in Guyana. In Budget 2020, the government has allocated some $20.8 billion to this project.
ENVIRONMENTAL PROTECTION
Speaking on energy production and consumption, Woods noted that the company supports the government’s commitment to environmental protection and “clean energy”.
He referred specifically to ExxonMobil’s commitment to reducing greenhouse gas emissions, and advancing the energy transition.
He noted that even as energy continues to be a necessity in improving mobility, education, healthcare, availability of food, along with many other basic needs, emission reduction is also vital.
“ExxonMobil is working to play a leading role in this global cause, and is committed to extending our leadership to Guyana in support of the country’s own climate ambitions,” Woods said.
In 2020, the company had set emission-reduction plans to be achieved by 2025. According to Woods, based on preliminary findings from last year’s results, which will be finalised later this quarter, the company expects to meet those objectives four years early.
This, he said, has influenced the company to aggressively move towards further reducing its emissions.
“Our success led us to set even more aggressive plans for 2030; this should reduce our greenhouse gas intensity by 20-30 per cent, and reduce our absolute emissions by 20 per cent, compared to 2016 levels.
“The experience we gained developing these reduction plans gives us confidence for what we can ultimately achieve, and helped form the basis of our recently announced net-zero ambition,” Woods said.
The company’s chairman added that its Liza Unity production vessel has been recognised as the first vessel of its kind to achieve the American Bureau of Shipping’s recognition for sustainability, for both its design and operating procedures.
Additional lower-emission solutions for Guyana being explored by the company include carbon capture-and-storage, which directly aligns with the government’s sustainability objectives.
“To reduce our own emissions and expand the Low-Carbon Solutions business, we’re investing more than $15 billion through 2027. With supportive government policies, we can accelerate these efforts, and invest even more,” Woods said, adding:
“These actions demonstrate our commitment to help address climate change, while providing the energy and products that billions of people depend on every day.”