–Top Exxon official hails ‘unprecedented’ pace of development

GUYANA will be playing a crucial role in the delivery of “secure” and dependable” lower-emission energy, as international oil giant ExxonMobil expects to increase production to 400,000 barrels of oil per day (bpd) from its two production vessels, ExxonMobil’s President (Upstream) Liam Mallon said recently.

The company also eyes increasing production to 600,000 bpd by the end of the year, Mallon said during the International Energy Conference and Expo Guyana 2023, which was held at the Marriott Hotel in Kingston, Georgetown.

ExxonMobil, the operator in the Stabroek Block offshore Guyana, currently has two state-of-the-art Floating, Production Storage and Offloading (FPSO) vessels- the Liza Destiny and the Liza Unity- producing 380,000 bpd.

That amount is greater than was expected from the two vessels which are operating in the Liza Phase I and Liza Phase II developments in the Stabroek Block. Mallon highlighted that the company believes those two vessels can produce 400,000 bpd with debottlenecking offshore.

“This is just the beginning” Mallon said as he predicted even greater success expected in the coming years through its partnerships.

Even as production at these two developments is set to increase, a third development offshore will start-up soon. At the Payara development, the third project in the Stabroek Block, Guyana will be producing an additional 220,000 bpd using the Liza Prosperity FPSO.

By the end of this year, production in the Block should increase to 600,000 bpd. ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) alongside Hess and China National Offshore Oil Corporation (CNOOC) are the coventurers in this Block.

The Stabroek Block, where production started since 2019, has brought much attention to Guyana. Mallon boasted about the 30 profitable oil discoveries offshore Guyana since 2015.

He said ExxonMobil and its partners continue to play a fundamental role in oil and natural gas in meeting the basic human need for energy and helping to drive economic growth and social progress in Guyana.

Mallon explained disasters such as the COVID-19 pandemic or Russia’s invasion of Ukraine have provided a powerful and tragic reminder of how quickly energy markets can be disrupted and the inherent risks of underinvestment and insufficient supply.

“When others were scaling back, Exxon Mobil, and its co-ventures here in Guyana leaned in and continued investing in development, not only here in Guyana, but globally and helped Guyana become an oil exporter by 2020. And today, a major new energy player.

“As we look to the future on this transition… oil and gas will continue to be a significant part of the energy mix for decades. Of course, we must balance new production with responsible development, safeguarding our environment and ecosystems and to contribute to the social and economic progress of the communities where we operate,” he said.

He said Guyana and its partnership with ExxonMobil is evidence that it’s possible to grow production, create value for society and shareholders while at the same time, lower harmful greenhouse gas emissions.

“We’re (ExxonMobil) demonstrating that commitment right now. We are playing a leading role in Guyana economic transformation, creating employment and local content and responsibly developing oil and gas resources.

“It’s really clear that Guyana will play an extremely important role in the energy transition. What we’ve achieved together here in Guyana is absolutely unique,” he said.

He had disclosed that Exxon anticipated having six projects online with a capacity of more than 1.2 million barrels a day by the end of 2027.

Mallon further explained that by 2027, Exxon development in Guyana is expected to generate about 30 per cent lower greenhouse gas emissions than Exxon Mobil’s upstream portfolio average.

UNPRECEDENTED

And in an interview with local energy resource centre, OilNow, Mallon described the activities in Guyana as unprecedented.

“The pace at which this is going on is unprecedented and just as importantly, we are doing it in a very responsible way.

“It’s just the most impressive thing I’ve worked on in my career,” Mallon said during the interview that aired on Sunday.

Mallon has over 40 years of experience in the oil and gas field and worked on numerous mega projects around the world.

Meanwhile, at the conference, ExxonMobil Guyana President, Alistair Routledge also talked up Guyana’s output and its position in ExxonMobil’s global portfolio.

“Guyana is playing in delivering another secure, dependable source of lower emission supply than some of the existing suppliers of oil and gas today in the world,” he said.

With Guyana poised to make the switch from fuel oil to natural gas, and the government has been committed to a low-carbon development trajectory which sees a reduced demand for fossil-based fuel to power its developmental needs.

Routledge explains that this is “critical to the global economy” while also delivering “tremendous” transformational opportunities to Guyana.