Exxon Mobil-led Consortium in Guyana Produces Record Oil Output

A consortium led by Exxon Mobil that controls all oil and gas output in Guyana achieved a milestone last week by producing 668,000 barrels per day (bpd) of oil. Alistair Routledge, the U.S. company’s head for the South American country, made the announcement during a conference on Tuesday.

The group is currently working on installing its fourth floating output facility in Guyana’s waters after receiving it in February. In March, the companies produced 627,000 bpd, and the first quarter average of 631,000 bpd was 3% higher year-on-year, according to data from the country’s energy ministry.

The Exxon consortium, with six oil projects fully approved for developing its Stabroek offshore block, is set to expand its output capacity to over 900,000 bpd later this year once the fourth facility is operational. This increase in production will lead to higher revenue and royalty payments to the government.

Focus on Natural Gas

While the focus has primarily been on oil production, Guyana is now pressing the Exxon group to produce and deliver more natural gas in the coming years. A $1-billion pipeline project is underway to transport gas from one of the offshore fields to land for power generation. Initially, the pipeline will transport at least 50 million cubic feet per day.

Routledge mentioned that Exxon has been updating the government on its exploration and appraisal activities, but a definitive number representing gas discovered and confirmed at Stabroek will only be known once the gas-focused projects in planning are developed.

Technological Advancements

Routledge highlighted the role of technology and artificial intelligence in enhancing Exxon’s drilling operations. The company has been able to drill wells faster and more efficiently, reducing the time it takes to drill a well from around 60 days to under 35 days.

Despite recent fluctuations in crude prices due to global tariff announcements and OPEC+ decisions, Exxon’s Guyana operations have not been significantly impacted in the short term. However, Routledge noted that these developments have influenced near-term investment decisions.

In conclusion, Exxon Mobil and its consortium partners continue to make significant strides in oil production in Guyana while also focusing on expanding natural gas output and leveraging technological advancements to improve operational efficiency.

Sources: Reuters