Exxon Mobil approves $12.7 billion oil project in Guyana

Modec

28/04/2023 24:00

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      Fifth project to add 250,000 barrels per day of oil output
    

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      Guyana may produce 400,000 barrels of oil per day by year
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      Exxon, Hess, CNOOC budgeted $42.7 billion for five oil
projects 
  
    

  
    By Sabrina Valle
       HOUSTON, April 27 (Reuters) - Exxon Mobil Corp  XOM.N 
and its partners have approved a $12.7 billion investment for
their fifth and most expensive offshore oil project in Guyana,
the U.S. firm said in a statement.
    The project called Uaru will produce up to 250,000 barrels
of oil and gas per day and cost 27% more than the prior of
equivalent size, reflecting rising costs. The decision coincides
with Exxon considering whether to expand its holdings in Guyana
through an auction of oil blocks set for July.
    Exxon and partners Hess Corp  HES.N  and CNOOC Ltd  0883.HK 
control all production in the South American nation, which
according to consultancy Rystad Energy is set to leapfrog the
United States next decade as one of the world's largest offshore
producers.
    "Our Guyana investments and unrivalled development success
continue to contribute to secure, reliable global energy
supplies," said Liam Mallon, president of Exxon's oil and gas
producing business.
        
    
    The Exxon-led group inaugurated production in 2019 and so
far has budgeted $42.7 billion for the five approved projects in
Guyana. Together, they are expected to produce more than 1
million barrels of oil and gas per day by late 2026. 
    Actual production could exceed planned capacity if the
newest projects replicate the better than expected results of
the first two projects. 
    The Liza Destiny and Unity vessels are currently delivering
375,000 boed, 10% above planned capacity. The two vessels may
end the year producing up to 400,000 boed combined, Hess said
Wednesday on a conference call in which it announced a new
discovery.
    Uaru's production vessel, called Errea Wittu, will be built
by Japan's Modec Inc and produce for at least 20 years, Exxon
said. It will oversee up to 10 drill centers and 44 production
and injection wells aimed at developing more than 800 million
barrels of oil supply.

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Exxon targets 1.2 million boed in Guyana by 2027     https://www.reuters.com/graphics/GUYANA-OIL/dwvkrbzxlpm/
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 (Reporting by Sabrina Valle; editing by Grant McCool)
 ((sabrina.valle@tr.com | Twitter: @sabrinavalle))