Exxon starts drilling at offshore Guyana projects

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International oil and gas company Exxon Mobil struck liquid gold a second time in its exploration efforts offshore Guyana. (Photo: Exxon Mobil)

(Reuters) – Exxon Mobil Corp said on Tuesday it started development drilling in three offshore Guyana projects, which could produce more than 500,000 barrels of oil per day.

The company said it expects to start producing oil from these developments in 2020.

The projects include the conversion of an oil tanker into a floating, production, storage and offloading (FPSO) vessel, which would have a production capacity of 120,000 barrels of oil per day.

A second FPSO with a capacity of 220,000 barrels per day is being planned and a third is under consideration, the company said.

Exxon said in March that projects in Guyana and the Permian Basin region of Texas and New Mexico, as well as refining and chemical plant expansions, should drive earnings gains.

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