Exxon eyes `aggressive’ work in Stabroek Block

-no mention of flaring issue at earnings call

Darren Woods
Darren Woods

With six oil discoveries in 2021 and two already for this year, ExxonMobil yesterday said that its estimated US$6 billion global restructuring will aid aggressive works at the lucrative offshore Stabroek Block, positioning the company this year to see additional profits as it strengthens its portfolio to increase shareholder returns.

And while the company outlined a number of specific targets as part of its emission reduction plans, no mention was made of Guyana and flaring. 

“Strengthening our portfolio across all of our businesses continues to be a key part of our strategic focus to increase shareholder returns. To that end, we had more exploration success in Guyana with six discoveries in 2021 and two additional discoveries already this year. This has expanded the estimated recoverable resource on the Stabroek Block to more than 10 billion of oil-equivalent barrels. And we’re on schedule to start production this quarter at Liza Phase 2,” Darren Woods, Chairman of the Board and Chief Executive Officer, informed at the company’s fourth quarter earnings call yesterday.

Woods is expected to be one of the key presenters at the upcoming International Energy Conference and Expo here, slated for the 15th to 18th of this month.

ExxonMobil’s oil and gas operations here and globally will from April 1, fall under the upstream oil and gas production unit; one of three consolidated divisions created by the company. The other two are the combined downstream refining and chemicals business, and its Low Carbon Solutions Unit.

“Our results demonstrate the benefits of the actions we’ve taken. We’re continuing to manage and evolve the company to further strengthen our competitive advantages, growing value through the transition regardless of its pace,” Woods said, underscoring the US$8.9 billion 4th quarter earnings and overall US$23 billion made for 2021.

“Now, looking ahead to this year. Our plan is robust and progresses our strategic objectives… first, we will increase our competitively advantaged, low cost of supply production with the start-up of Liza Phase-2 in Guyana, and the Coral LNG development in Mozambique,” he also pointed out.

In terms of capital expenditure (CAPEX), the company gave a US$21 billion to US$24 billion range and pointed out that Guyana will again account for some of its biggest increases in that area.

“Overall, I think as you consider the range that we’ve given, I’d kind of point to starting the year with an expectation of being more toward the centre of the range. And then we’ll see, ultimately, how the projects and the big projects proceed is probably the biggest indicator, and whether any new projects ultimately come online, which we would always be maintaining some level of flexibility for. Unsurprisingly, with the size of our upstream business relative to downstream and chemicals, you know, the biggest increase year over year comes from overall, the upstream business and further spending in Guyana…,” he explained.

While the company played up its energy transition plans; boasting that it created its Low Carbon Solutions business to commercialise its extensive low-carbon technology portfolio, and that it was on the path and advancing plans for more than 20 new carbon capture and storage opportunities around the world, to enable large-scale emission reductions, no mention or assurance was given about curtailing flaring here.

The company stated that it aims to achieve net zero Scope 1 and 2 greenhouse gas emissions for operated assets by 2050, with plans to achieve net zero in the West Texas shale Permian Basin by 2030.

“We’re also accelerating our work to reduce emissions and drive innovations focused on the hard-to-decarbonize sectors, such as heavy industry and commercial transportation. An important part of this activity is our ambition to achieve net-zero emissions from our operations by 2050. Also important is the good progress we’ve made building our low carbon solutions business, which is rapidly expanding, utilizing existing policy. As you’re all aware, we’re also pursuing very large scale opportunities that will give us first-mover advantage as we advocate for the new policy necessary to support these step-out projects,” Woods outlined.

The company said that it expects to achieve 2025 emission-reduction plans four years ahead of schedule

“Our results demonstrate the benefits of the actions we’ve taken. We’re continuing to manage and evolve the company to further strengthen our competitive advantages, growing value through the transition regardless of its pace,” Woods declared.

Flaring and the emission effects on the environment have been an issue that environmentalists and citizens in Guyana have repeatedly voiced concern over.

Recently, three Guyanese women filed a case against Guyana’s Environmental Protection Agency to put a stop to flaring of gas offshore by the US oil major.

Guyana’s Environmental Protection Agency disclosed that as of September last year it had received approximately $400 million in “flaring fees”.