LAST week, both Hess Corporation and ExxonMobil held their second quarterly earnings calls for 2023. Both reported lower profits compared to last quarter but outlined extensive plans to continue investing in Guyanese production for the long-term.

ExxonMobil, the operator of the Stabroek Block, emphasised that it is driving greater efficiencies across its global operations while aiming to operate in the safest and most effective way possible. Previous reports have indicated that the company is reinvesting most or all of its local profits into expanded exploration and development in Guyana, boding well for the future.
Hess’s Chief Executive Officer, John Hess, was also quick to explain that the world will “require reliable, low-cost oil and gas resources for decades.” Guyana can play an integral role in meeting this requirement, thanks to its rapid pace of development, which was evidenced in the first three months of this year.
The country is already playing an important role in supplying Europe with oil as it turns away from Russian imports and analysts predict that high-quality and relatively low-emission Guyanese crude oil will continue to be highly sought-after.

The Stabroek remains the only producing block, with proven reserves of about 11 billion barrels of oil resource. Analysts estimate that total reserves could be almost double that number, but it will likely take substantial investment and exploration to uncover them.
Hess expressed its eagerness to help lead that investment, alongside partners CNOOC and ExxonMobil. Executives explained the optimism and long-term implications of its investments in Guyana, indicating that in terms of “resource growth with multiple phases of Guyana developments coming online… we can deliver highly profitable production growth of more than 10 per cent annually through 2027.” The company’s reported dip in revenues was due to lower realised selling prices, but Hess noted that higher production volumes in Guyana was a bright spot.
In the second quarter this year, oil and gas net production averaged around 380,000 barrels of oil equivalent per day.

One of the main themes of the earnings call was interest in continuing exploration in the Stabroek Block. Chief Operations Officer and President of Hess Corporation Greg Hill mentioned plans to drill at the Basher-1 and Lancetfish-1 sites, as well as the Lancetfish-2 appraisal well.
Guyana’s oil and gas sector continues to grow, with increased exploration and production at the Stabroek Block. Additionally, Hill shared on the call that exploration and appraisal activities are planned for the southeast portion of the Stabroek Block “to better understand the longer-term potential of this area.”

A steady stream of new developments will be essential to nurture the growing set of local industries that are servicing the projects offshore.
ExxonMobil also highlighted continued investment in the Fangtooth area, a potential seventh development in the Stabroek Block. Chief Executive Officer Darren Woods cited progress both in Guyana and globally towards meeting the world’s needs for energy, essential products and reducing emissions.

The exploration and production expeditions and drill campaigns across the Stabroek Block are a clear sign of Hess, ExxonMobil and CNOOC investing back into Guyana.
While both companies did report declines in profits, ExxonMobil in particular showed more efficient operations and higher profitability compared to their second quarter in 2018, under comparable industry commodity prices—a promising sign that the company is working efficiently and keeping costs low. Additionally, the company made it clear that it is constantly driving greater efficiencies across its global operations with a goal of operating safely and effectively at all times.

For Guyana, profits are not merely abstract. They mean more money available to invest and reinvest in the country and the more assets on hand in case of any accident. This is a good thing for Guyana as more investments mean increased production, which in turn leads to more oil revenues that the country can invest into social programmes, other industries, and vital infrastructure.