ExxonMobil has become one of, if not the largest, energy companies in the world, with projects that span the length and breadth of the international energy market. Exxon, through its Guyanese affiliate, ExxonMobil Guyana, has recently detailed the expansion roadmap for its Guyana operations, targeting a substantial increase in barrels produced per day over the coming years. The current sentiment is that Guyana will see its role in the international energy industry shifting as the world turns its attention to the South American market.
ExxonMobil: an exemplar of the remarkable upstream growth
The remarkable expansion of the US energy industry has seen several energy majors investing heavily to advance and increase operational output capacity, and ExxonMobil has become the cornerstone of the international energy industry through the company’s exceedingly diversified portfolio.
In the US market, ExxonMobil has boosted its presence in the refining industry through the newly commissioned third advanced plastics-recycling unit at the Baytown Refinery. Outside the US, Exxon is targeting several new developments, with the Guyanese Hammerhead development playing a key role in advancing the company’s activities in the South American market.
Energy companies are fostering a new era of increased production capacity on the global stage
As the new year brings with it the anticipated increase in demand for essential energy resources, a litany of companies have recently outlined their capex budget for the year ahead, and ExxonMobil is taking the initiative to create a new era of increased production at the company’s operations in Guyana. The company’s leadership has recently stated that the plan is to expand its already impressive operations in Guyana through several new developments.
“We continue to set a new standard in Guyana – advancing an impressive seventh project just 10 years after first discovery. In collaboration with the people and government of Guyana, we’ve helped build a thriving new oil-and-gas industry in the country that is creating jobs, supplier opportunities, profits and follow-on investments.” – President of ExxonMobil Upstream Company Dan Ammann
ExxonMobil is aiming to support Guyana’s energy transformation
Exxon has been operating in South America for an exceedingly long time, and has recently outlined the plans for the Hammerhead project, which was recently granted all the relevant approvals from the Guyanese government.
Exxon has recently taken a Final Investment Decision on the offshore development in Guyana, and has noted that the project is the seventh on the Starbroek block under the stewardship of the US-based energy major.
The Hammerhead project aims to increase ExxonMobil’s output capacity to 1.5 million bopd through a floating production storage and offloading (FPSO) vessel. The aforementioned vessel boasts a production capacity of around 150,000 barrels of oil per day and forms part of a larger investment by ExxonMobil in Guyana, totaling an astonishing $6.8 billion.
ExxonMobil is preparing for an influx of heavy-grade crude
Putting the $6.8 billion Hammerhead project aside, ExxonMobil has begun preparations at its Baton Rouge refinery to handle an influx of heavy-grade crude from Venezuela. Exxon’s detailed plan for its South American ventures has raised the company’s planned output capacity for the years ahead. Can ExxonMobil deliver a new era of increased output capacity from the company’s plethora of South American projects?
ExxonMobil is advancing several other developments in South America
Building on the positive investment in Guyana, ExxonMobil has selected a Norwegian company to lead the necessary seismic-survey contract for a new offshore development in Trinidad and Tobago. The reality is that while the rest of the world is focused on the global energy transition away from fossil fuel-based energy production towards the more environmentally friendly renewable energy sector, Exxon and its partners are working to create a new upstream growth opportunity in the tiny nation of Guyana.
