ExxonMobil Corporation’s Senior Vice President, Kathy Mikells revealed on Friday that the company’s advantaged projects in Guyana and the Permian Basin in the U.S., delivered strong volume contributions for the 2023 second quarter.
During her outline of Exxon’s Upstream business, the Chief Financial Officer (CFO) said the Permian production delivered a record performance of about 620,000 oil-equivalent barrels a day (boed) while Guyana had a record gross production of 380,000 barrels of oil per day.
Compared to the same quarter last year, Mikells said Exxon added about 90,000 boed to global supply from growth in Guyana and the Permian, more than offsetting natural depletion. The CFO said this net growth partially offsets the impact of divestments in Russia.
Additionally, the CFO also said Exxon is strengthening its competitiveness by growing low-cost-of-supply assets and monetising non-strategic, more mature assets through divestments. “In fact, the volumes from the Permian and Guyana are delivering two times higher unit earnings than the volumes from the assets we divested over the past year,” the CFO stated.
Compared to the second quarter of 2022, she also shared that liquids volumes increased 2% on growth from Guyana and the Permian, while gas volumes decreased 12%, mainly due to the divestments.
Mikells was also keen to note that the additional barrels produced in Guyana and the Permian are not only cost-advantaged, but they’re also some of the lowest-carbon intensity barrels in Exxon’s portfolio.
Exxon’s Chief Executive Officer (CEO), Darren Woods was also in high praise of the performance delivered by Guyana and the Permian. During his remarks, he said Exxon expects to deliver 2023 average Permian production of about 600,000 oil-equivalent barrels per day. By 2027, he said Exxon expects Permian production to reach about 1 million oil-equivalent barrels per day.
Over in Guyana, he said production is expected to climb. In fact, Woods said Exxon sees the potential to increase the combined gross capacity of the Liza Destiny and Liza Unity FPSOs to above 400,000 barrels of oil per day with further debottlenecking. Woods said this is nearly a 20% increase above the investment basis “and a testament to the ingenuity of our people.”
With over 11 billion barrels already unlocked in Guyana’s Stabroek Block, the company executives believe Exxon’s Upstream business is well positioned to meet the growing demand for oil and natural gas.
