Once the Liza Phase One, Two, and Payara on stream simultaneously in 2024, American oil giant, ExxonMobil is expected to rake in at least US$1.6B annually in profits. This computation was done by The Value Portfolio, one of the contributors to www.seekingalpha.com, a platform that hosts the largest investment community in the world.
The financial contributor said that ExxonMobil recently started up Liza Phase One with its 45% stake at a net US$35 a barrel cost while noting that it expanded to Liza Phase Two with 220 thousand barrels a day at US$25 per barrel cost. It was keen to remind that ExxonMobil is now advancing towards Payara which will produce 220 thousand barrels a day in production at US$25 a barrel at breakeven. This means that the three projects will be producing 560 thousand barrels/day.
Given that Exxon Mobil’s stake is just over 250 thousand barrels per day earning US$18 a barrel in profits, it means that the oil giant will be earning US$1.6 billion in annual profits alone.
ABOUT THE STABROEK BLOCK
Gross discovered recoverable resources for the Stabroek Block are estimated at more than 8 billion barrels of oil equivalent as of January 2020. The 18 discoveries on the block to date have established the potential for at least five FPSOs producing more than 750,000 barrels of oil per day by 2026.
The Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.