May 05, 2023 News
Kaieteur News – ExxonMobil Corporation’s Chairman, Darren Woods recently alluded that the oil giant is banking on premium assets in Guyana as well as the USA to keep its balance sheet soaring with multi-billion dollar profits in an effort to deliver high returns to shareholders.
For the first quarter of 2023, and with the assistance of two producing projects in the Stabroek Block, Woods said Exxon was able to secure its highest ever profit in a first quarter which totaled US$11.3B. During a recent earnings call with shareholders, Woods said such results, along with the unprecedented pace at which projects are moving in Guyana, are what underpin its rock-solid performance while keeping it well ahead of the competition.
Woods said, “As our results demonstrate, we’ve built a strong portfolio of advantaged businesses that are better leveraging the synergies of our integrated businesses, our scale and, increasingly, our unique technical capabilities. Of course, these all require and build on the deep skills and excellence in execution across the functions that support our businesses.”
Over in the USA, he noted that the company was able to complete expansion works at its Beaumont refinery expansion in Texas which capitalizes on the lighter crude from its Permian production. By itself, he said the 250,000 barrel-per-day expansion is the largest in the U.S. in the last 10 years. “Together with our existing capacity on site, the expansion makes Beaumont the second-largest refinery in the U.S. We started up the expansion in February, on budget and two months early, reaching nameplate capacity in March,” Woods said.
With the summer travel season fast approaching and the market for refined products remaining tight, Woods said the market needs this capacity. At average margins, he said Exxon expects the project will deliver annual earnings of between US$200 million and US$300 million. At April margins, Woods said it will deliver twice that.
Still on the USA, Woods was keen to note that his company is expanding the overall processing capacity of the Cowboy Central Delivery Point in Texas by more than 50 percent. Cowboy, for those who may not be aware, is one of the largest oil and natural gas handling facilities in the Permian Basin, and the planned expansion will boost processing capacity to about 300,000 barrels per day of oil, and 400 million cubic feet per day of natural gas.
In Guyana, Woods noted that the floating production, storage, and offloading vessel for Payara is on site, and well ahead of schedule. Last year, he recalled that Exxon and its partners pulled the Payara start-up date forward from 2024 to 2023 and expect the project to be up and running in the fourth quarter. He also noted that Payara will add another 220,000 barrels of gross capacity and will be the third consecutive FPSO to start production ahead of schedule.
He was also pleased to report that Exxon has received approvals for its fifth project at the Uaru field in the Stabroek Block. That project will produce about 812 million barrels of oil over a 20-year-period and will come on stream in 2027.
Exxon’s fourth development project at the Yellowtail field is expected to come on stream in 2026 and produce over 920 million barrels of oil. Woods said these projects, along with others in its portfolio, and combined with improvements in its businesses; provide a strong foundation for sustained, industry-leading performance. The Exxon chief said, “Our diverse portfolio of advantaged businesses, improvements in mix, structural cost savings, and excellence in execution are driving industry-leading earnings, cash flow, and shareholder value.”
When combined with the strength of its balance sheet, Woods said Exxon without a doubt has the capability to win across a wide variety of market conditions and deliver strong returns while meeting the evolving needs of society, including the need to reduce emissions. Decades of long-term growth is what the world can expect from Exxon, the CEO told shareholders.
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