GEORGETOWN - ExxonMobil (NYSE:XOM) has commenced production at the Payara development within the Stabroek Block off the coast of Guyana, launching operations ahead of schedule. Under the leadership of Liam Mallon, President of ExxonMobil Upstream Company, the initiative is set to significantly boost Guyana's oil output.
The Prosperity and Liza Unity Floating Production Storage and Offloading (FPSO) vessels, both recognized for their sustainability with the SUSTAIN-1 notation from the American Bureau of Shipping, are central to this development. The Prosperity FPSO is expected to initially contribute up to 620,000 barrels of oil per day. This marks a substantial increase in production capacity for the country, as operational wells at Payara ramp up.
By the first half of 2024, the Prosperity FPSO alone is projected to add another 220,000 barrels per day to the total yield. This expansion aligns with ExxonMobil's strategy to enhance reliable and sustainable energy access, fostering economic growth in partnership with the Guyanese government.
Looking ahead, ExxonMobil plans to have six FPSOs operational in the Stabroek Block by the end of 2027. This includes upcoming projects like Yellowtail and Uaru, with a collective target production capacity exceeding 1.2 million barrels per day. Additionally, the company is seeking regulatory approval for a sixth project at Whiptail.
The economic implications for Guyana are significant. Mallon emphasized the benefits for local communities and underscored ExxonMobil's commitment to meeting global energy demands through these developments. Notably, these projects are anticipated to produce approximately 30 percent lower greenhouse gas intensity compared to the average of ExxonMobil’s upstream portfolio, according to research by Rystad Energy.
ExxonMobil Guyana Ltd., Hess (NYSE:HES) Guyana Exploration Ltd., and CNOOC (NYSE:CEO) Petroleum Guyana Ltd. operate the Stabroek Block with stakes of 45 percent, 30 percent, and 25 percent respectively. The advancement in these projects reflects a strategic move by ExxonMobil to bolster its position in sustainable energy production while contributing positively to Guyana's economic landscape.
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