October 10, 2024 [Oil price]- Exxon is planning to increase its crude oil production offshore Guyana by 18,000 barrels daily, Bloomberg has reported, citing a senior company executive.
The output increase will come from the Unity platform, whose capacity would be ramped up to 270,000 bpd from 252,000 bpd currently, Exxon country manager Alistair Routledge said. He added, however, that the final go-ahead of the production increase would come from the Guyanese government, after Exxon and the authorities agree on risk assessment, analysis, and modeling.
“We won’t increase any production until everybody is satisfied that we’ve done the right work,” Routledge told media.
Exxon is currently producing a total of 665,000 barrels of crude daily in Guyana but over the longer term eyes production of over 1 million bpd. Total oil production in the country is seen rising to over 1.6 million barrels daily by 2030, as the government seeks to maximize returns from the industry before the predicted demand growth peak. If the peak demand predictions fail to materialize, the outlook for Guyana’s oil industry is even brighter.
The only production in the country comes from the Stabroek block, which is managed by a consortium led by Exxon, and also including Hess Corp. and China’s CNOOC. Since the first struck oil in the block, the three have tapped total reserves estimated at over 11 billion barrels of crude, turning Guyana into the new star on the global oil scene.
So far, the consortium has done six production projects in the country and is now working on the seventh one, set to submit its development plan to the Guyanese authorities early in 2025. That seventh project should be completed by 2029 and boost Guyana’s oil production capacity to 1.4 million barrels daily. That project, Hammerhead, will produce between 120,000 bpd and 180,000 bpd when it starts.
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