Exxon expects more money with ramped up production in Guyana, Permian basin

ExxonMobil on Friday reported that its profits in the first quarter of this year doubled when compared to the same period. And it expects even higher earnings for this rest year as ramped up production is expected in Guyana and the Permian basin.

The oil company reported its first quarter earnings on Friday morning. The company reported US $5.48 billion in profits compared to the $2.73 billion earned in the first quarter of last year.

These increased profits were recorded even as the company abandoned Russian operations because of that country’s widely condemned invasion of Ukraine. Even so, the Russian fallout resulted in surging oil prices- which benefited the company.

The company’s Senior Vice President and Chief Financial Officer Kathy Mikells said that for the rest of the year the company expects “favourable earnings evolution” with increased production in Guyana and the Permian basin.

The absence of severe weather-related impacts, limited reductions in the European seasonal gas demand and higher liquefied natural gas (LNG) are also expected to boost profits.

Meanwhile, ExxonMobil’s Chairman and Chief Executive Officer (CEO) Darren Woods said that the company is “making outstanding progress on our high-value growth developments in Guyana, the Permian, and LNG.”

And he said the developments here are a “prime example” of the benefits of the company’s continued high-value investments. And he outlined how production is expected to increase in Guyana.

In the first quarter of 2022, ExxonMobil started production at Liza Phase Two, its second development in the Stabroek Block offshore Guyana.

“Production is ramping up ahead of schedule and is expected to reach a capacity of 220,000 barrels of oil per day by the third quarter this year.

“Combined with Liza Phase 1, it will bring our total production capacity in Guyana to more than 340,000 barrels per day,” Woods said.

Meanwhile, while presenting its first quarter earnings earlier in the week, Stabroek Block co-venturer Hess noted that Guyana’s first oil ship – the Liza Destiny – has expanded its production capacity from 120,000 barrels per day to 140,000 barrels per day.

With this oil ship currently producing 130,000 barrels of oil per day in the Liza Phase 1 development, where Guyana’s oil production first began in 2019, it is expected to reach full capacity by the second quarter of 2022.