ExxonMobil to recoup initial costs and increase profits in Guyana

ExxonMobil's joint venture in Guyana has recovered the?billions?of dollars?it invested for developing a large oilfield, according to its chief financial office. The South American nation will receive more money from oil. Since its discovery in 2015, the U.S. Oil Producer's portfolio has included Guyana's Stabroek Block. It is estimated that the block contains at least 11 billion gallons of oil equivalent. The field's revenue has helped Guyana become one of the fastest growing economies in the globe, and the country is now producing more than 900,000. barrels per day.

Exxon, along with its partners, were able to receive up to 75% of oil from the joint venture to cover exploration and development expenses.

Exxon's Chief Financial Officer Neil Hansen stated in an interview that the $55 billion invested between 2014 and now has been recovered about two years quicker than expected due to the rapid development of this block.

Hansen stated that "we brought these investments to a unprecedented speed and cost advantage."

The PSC splits the profit oil with Guyana equally after recovering costs. Exxon is now booking about 100,000 less bpd as it enters its third quarter. However, free cash flow from the country will double by 2030, to the level seen in the year 2025. Exxon CEO Darren Woods stated on Friday that there was 'room for exploration in Guyana. The company used AI to assess drilling and subsurface information. A portion of the block is still under force majeure because of a maritime border dispute between Guyana, Venezuela and a United Nations ruling. He said that "we're not done yet" in Guyana, and continued to look forward to a bright future.

Exxon is the operator of the Stabroek block with a 45% stake. Chevron, which acquired Hess Corp (the?original partner of the consortium), holds 30%, while Chinese oil company CNOOC has 25%. The fifth and sixth projects of the consortium in Stabroek block -- Uaru, and Whiptail -- should begin oil production this year and next. Guyana's economy, which has a population of?about 1 million, is still struggling to diversify beyond oil. Many local businesses are flourishing, but residents still struggle with long-term electricity blackouts and an ailing infrastructure. Sheila Dang reported from Houston, and Nathan Crooks edited the story with Tom Hogue and Andrea Ricci.

(source: Reuters)