ExxonMobil’s Senior Vice President, Neil Chapman recently disclosed that by 2025, the projects being developed in the Stabroek Block will be able to generate US$3.5B in operating cash flow for the oil giant. These and other revelations were made by the official during his presentation at the company’s recently concluded Investor Day conference that was virtually held.
There, Chapman boasted that very few assets in the world can compete with the resource ExxonMobil has discovered in the Stabroek Block which is around nine billion barrels of oil equivalent resources and is the largest oil play discovered in the last decade.
Aside from Liza Phase One Project which has been in production for over one year now, Chapman said that the American oil giant and its partners, Hess Corporation and CNOOC/NEXEN, have sanctioned two additional projects, being the Liza Phase Two and Payara which are on pace for 2022 and 2024 start-up respectively. Beyond that, he said that ExxonMobil has a clear line of sight to the next three projects which all together will produce more than 750, 000 barrels of oil per day by 2026.
As for the resulting financial outlook, Chapman said that this is very strong too, as the projects are poised to generate double-digit returns at less than US$35 per barrel Brent. At US$50 per barrel from 2021, the ExxonMobil official said, “We expect our Guyana production to generate US$3.5 billion of operating cash flow in 2025 with an average return of better than 25 percent.”
Turning his attention to the greenhouse gas intensity of the company’s Guyana developments, he disclosed that this is expected to more than 45 percent lower than its upstream average in 2025. He said that this is consistent with the World Bank Initiative to eliminate routine flaring by 2030.
The Senior Vice President also noted that the company maintains a strong relationship with the government in providing more than 2000 employing opportunities to date while adding that the Stabroek Block partners expect that number to grow as additional development are brought online in future years.