XOM

Exxon accelerates production in Guyana, makes two new discoveries

Credit: REUTERS/ANDREW KELLY

By Sabrina Valle

HOUSTON, July 26 (Reuters) - Exxon Mobil Corp XOM.N on Tuesday said it has made two new oil discoveries offshore Guyana and that it has already exceeded, in July, its 2022 production target for the South American country.

The announcements are part of Exxon’s efforts to accelerate production in Guyana and to invest on long term megaprojects that offer lower costs and lower carbon emissions per barrel. A group led by Exxon started production in the tiny nation of 750,000 people in 2019 and currently controls all output in Guyana.

“Exxon and its partners continue to accelerate exploration, development and production activities for the benefit of all stakeholders, including the people of Guyana,” Liam Mallon, head of Exxon’s upstream company said in a statement.

The U.S. major said it is already producing 340,000 barrels of oil equivalent per day (boepd) in Guyana - a target that until months ago was set for the entire year - leaving room for further output expansion in the coming months.

Exxon earlier this year increased the capacity of one of its two platforms operating in Guyana. The two - Liza Destiny and Liza Unity - have now a combined capacity of 360,000 boepd.

Exxon has announced an average of one discovery per month this year.

Guyana amounts for one third of the crude discovered in the world since Exxon first hit oil in the country in 2015, according to Rystad consultancy firm. The about 11 billion barrels of recoverable oil discovered to date should make the country a global oil power in the coming years, Rystad says.

The two new oil discoveries - Seabob and Kiru-Kiru - take the total number of discoveries to more than 30.

(Reporting by Sabrina Valle Editing by Marguerita Choy)

((sabrina.valle@tr.com | Twitter: @sabrinavalle))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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