Guyana, Permian growth offset Exxon’s divestments, Sakhalin-1 expropriation in 2022

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ExxonMobil revealed that earnings from growth at its Guyana and Permian projects in 2022 more than offset the losses from its divestments and the expropriation of the Russian Sakhalin-1 project. This was also helped by higher prices on account of the war in Ukraine.

“Our continued investment in competitively advantaged, high-return projects enabled us to increase production this year by 25,000 barrels of oil-equivalent per day (boepd) despite the loss of about 140,000 oil-equivalent barrels per day from divestments and the expropriation of Sakhalin-1,” Chief Executive Officer, Darren Woods said.

According to Exxon’s 2022 earnings report, the change in earnings from growth projects amounted to US$2.72 billion. Losses from divestments amounted to US$2.16 billion, while the Sakhalin-1 expropriation negatively impacted earnings by US$380 million.

Exxon had announced in March 2022 that it would discontinue operations at the Sakhalin-1 venture, in compliance with sanctions against Russia for violating Ukraine’s territorial integrity.

In Guyana, growth was helped by production optimisation at the Liza Phase 1 project. Phase 2 started up ahead of schedule. This resulted in the addition of gross production by over 160,000 barrels per day (bpd) over the full year in Guyana. Both phases ramped up to nameplate capacity in the second half of 2022 and demonstrated production above Exxon’s investment basis. The projects now have combined nameplate capacity of 360,000 barrels per day (bpd).

Exxon said that production in the Permian grew by about 90,000 boepd.

Altogether, Permian and Guyana volumes grew by more than 30%.

In 2023, Exxon projects Guyana production will average 360,000 bpd and Permian production will average 600,000 boepd.

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