ExxonMobil records $614 billion in profits

ExxonMobil Guyana Headquarters in Georgetown

Oil giant ExxonMobil raked in as much as $614 billion from its operations in the Stabroek Block in 2023, a sizeable amount that is also dwarfed by the over $1 trillion in total revenue from its holdings in Guyana.

This was according to Exxon Exploration and Production Guyana Limited (EEPGL) Vice President and Business Services Manager, Phillip Rietema during a media engagement on Thursday.

He shared Exxon Guyana’s 2023 Annual Report, showing that the company earned $614 billion in profit from its Stabroek block holdings. Another revelation was that Exxon had $138.1 billion in taxes remitted to the Guyana Revenue Authority, on its behalf.

“As you can see in the financial statements, it was another profitable year. We increased our profits, year over year, to around $600 Billion. It’s reflective of building on the success of prior years.”

“As we noted, we brought online the Prosperity FPSO (Floating Production Storage and Offloading) vessel. We also had a full year of the Unity FPSO. So, production was up year over year. And it was profitable production,” Rietema explained.

Continuing further, Reitema noted that Exxon’s financial position derives just from its 45 per cent share in the Stabroek Block. That means that Exxon’s partners CNOOC and Hess, who have separate accounting, would also have derived sizeable profits.

“So, the financial position is quite strong for EMGL. And what you see here is just our 45 per cent share. You in total, when you look at the financial statement, we have assets of over $3 Trillion. We have equity of over $2 Trillion. We are financially strong. And we’re getting stronger, year after year as we continue to invest in our projects,” he further said.

Exxon’s after-tax profits in Guyana in 2022 were $577.7 billion. In 2021, which was the first year the company made a profit since it launched its operation in Guyana, Exxon raked in $132 Billion in profits. Globally, the company raked in 7.5 trillion in profits.

Exxon, through its local subsidiary EEPGL, is the operator of the Stabroek Block and 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.

The Liza Phases One and Two and Payara projects, all of which combined are producing over 600,000 barrels of oil per day, account for the three floating, production, storage and offloading (FPSO) vessels operating in Guyana’s Stabroek Block in waters offshore.

The current production figures will be further buttressed by the Yellowtail and Uaru developments, which are already underway and are anticipated to contribute 250,000 barrels of oil each following their respective start-ups.

An application for the sixth development, the Whiptail Project, was submitted by the Stabroek Block operator, ExxonMobil Guyana Limited (EMGL) and its co-venturers. This project is currently under review by the Government, and once approved, will see Guyana producing just over 1.2 million barrels of oil per day by 2027.

In addition to at least these six projects offshore Guyana that Exxon anticipates will be online by 2027, it is also eyeing the possibility of having 10 FPSOs operational by 2030. Production has already started on three projects, with the Liza Destiny and Unity and the Prosperity FPSO vessels in operation. The third project – the Payara development – targets an estimated resource base of about 600 million oil-equivalent barrels, and was at one point considered to be the largest single planned investment in the history of Guyana.

Meanwhile, the Yellowtail development, which will be Exxon’s fourth development in Guyana’s waters, has an anticipated start-up of 2025. The Uaru oil development, which will be the fifth one for the company offshore Guyana, is targeting between 38 and 63 development wells, including production, water injection, and gas re-injection wells.

Exxon had also previously made known that first oil from the Uaru development is anticipated by late 2026 or early 2027.