Azerbaijan's Energy Minister secures cooperation…
General Motors Co.'s Cruise autonomous…
Exxon and its partners in the offshore Stabroek Block in Guyana made almost $6 billion from their operations there, Reuters has reported, citing official documents.
According to the documents—audited financial results—Exxon, Hess Corp., and CNOOC earned a combined $5.8 billion from the Guyana business in 2022.
Exxon’s individual share from the total was $2.74 billion, the Chinese state oil firm took home $1.55 billion, and Hess Corp. got $1.53 billion.
The document was released as part of an ongoing appeal against a court ruling that found the consortium guilty of violating its insurance obligations regarding oil spills.
According to its contract with the government, the consortium must have insurance cover to be able to pay all costs of a potential spill plus an unlimited guarantee provided by the lead partner, which is Exxon, that covers everything not covered by the insurance policy.
Yet a Guyanese court recently found that this guarantee is non-existent and, in the case of a spill, the Guyanese state would have to shoulder the burden of any costs not covered by the insurance policy. Exxon and its partners are appealing.
Exxon and its partner Hess Corp. have made some 30 discoveries offshore Guyana since they started exploring the Stabroek block. Production is climbing consistently, likely to hit 400,000 bpd by the end of this year. Guyana is a priority jurisdiction for Exxon, along with U.S. shale.
Exxon and Hess are the only oil producers in Guyana, but the country’s government has big plans. Guyana is tendering 14 more blocks this year as it seeks to speed up its transformation into a major oil producer while reducing Exxon’s dominance of its emerging oil industry.
Meanwhile, production is expected to continue growing strongly in the second half of the year and, over the longer term, Exxon eyes total output of some 1.2 million bpd from six floating production vessels.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com:
Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.