The 2024 profit of Exxon-led Consortium in Guyana increased 64% to $10.4 Billion

Exxon Mobil, Hess, and CNOOC, a trio of oil producers in Guyana, posted a 64% increase in profit in 2024 to $10.4 billion. This was due to the fact that facility upgrades allowed for sustained production growth.

Guyana, a South American nation, has been a profitable operation due to its rapid production expansion, low taxes and royalties, and the relatively low amount of government revenue.

Guyana, along with its neighbors who share the same oil basin, is expected to be one of the last frontiers in the world for oil exploration.

Exxon reported in January that it expects to earn $33,46 billion by 2024. Of this, $4.7 billion will come from Guyana.

Hess profit in Guyana grew from $1.9 billion to $3.1 billion, and CNOOC profit increased from $1.5 billion to $2.5 billion.

Government figures show that the consortium's oil production rose by 3% on an annual basis to 631,00 barrels of crude per day during the first quarter. The output is expected to exceed 900,000 barrels per day once the companies finish installing a fourth vessel which arrived in the country’s waters in Feb.

The Guyana government recently revoked a license granted to a possible rival consortium headed by Frontera Energy, whose shares are listed on the Toronto Stock Exchange.

Exxon is planning to increase its natural gas supply in Guyana as the pressure on Guyana increases.

strategy

Earlier this year, executives from the company said that they needed to plan and develop supply and development of reserves.

Exxon announced that the consortium achieved a gross production volume of 652,000 barrels per day in the fourth quarter following updates to some of its floating installations. Exxon reported that the production capacity will reach 1.7 millions bpd in 2030.

Exxon said that the group's expenses for Guyana increased by 42%, to $4.9 billion. This would result in a profit of $12.8 billion before taxes.

(source: Reuters)