Pace of Guyana exploration, production activities not happening anywhere else in the world – Exxon VP, Global Exploration Official

May 29, 2023 News

Kaieteur News – ExxonMobil’s Vice President of Global Exploration, John Ardill, recently expressed admiration for the remarkable pace of exploration and production activities in Guyana, in an interview with S&P Global Commodity Insights.

He mentioned that ExxonMobil’s three criteria for investment, namely attractive geology, stable political conditions, and carbon footprint minimization, “all come together” in Guyana.

Ardill explained that meticulous consideration goes into upstream investments, as they have long-lasting implications. He stated, “Are they the right molecules in the right place with the right carbon intensity and if those questions are all yes, then they’ll find a path to development. Not, in many cases, very quickly. If there are question marks around those… it’s going to be a harder path.”

Discussing ExxonMobil’s expansion in Guyana, Ardill regarded it as a benchmark against which other basins, including those in Africa, are measured. He explained that the rapid revenue generation and the ability to minimize emissions from the production process make oil a vital resource, particularly in regions like Guyana.

Ardill gave insight into Exxon’s operations in multiple jurisdictions, but the article appeared to indicate he had a particular enthusiasm when discussing the developments in Guyana. Since 2015, more than 30 discoveries and an extremely generous deal have given Exxon the push to move quickly on the development of 11 billion oil-equivalent barrels. It has already received the go-ahead from the government to place five floating production, storage and offloading (FPSO) vessels offshore Guyana, to produce more than a million barrels of oil per day (bpd), and is likely to pursue as many as 10 in total.

Ardill praised the speed at which development in Guyana has progressed, stating, “That’s incredibly fast, four and a half years from discovery to first oil is pretty much an industry record. So that oil development, by any measurable standard, in a new country with no hydrocarbons industry, using floating production, storage, and offloading vessels, all of that is world-class pace and skill, and to be running three rigs drilling pure development wells, that’s not happening anywhere else in the world.”

The one thing that was not mentioned in the S&P piece is the enviable deal ExxonMobil is benefitting from. The lopsided Stabroek Block Production Sharing Agreement (PSA) has been facing protests and calls for its renegotiation for years.

S&P said Exxon is currently producing 360,000-370,000 bpd in Guyana, and has six rigs operating. The Payara project will start later this year, taking production to 600,000 bpd. Yellowtail will come on in 2025 and Uaru will achieve first oil in 2026. The Whiptail project, still to be reviewed and approved, is being targeted for first oil in 2027. By then, current production is expected to triple. Exxon has a 45% working interest in the Stabroek Block, as operator. Hess Corporation has a 30% stake, and CNOOC Limited has a 25% stake.

• Ardill regarded it as a benchmark against which other basins, ExxonMobil's Vice President of Global Exploration, Guyana, including those in Africa, John Ardill, recently expressed admiration