Exxon Mobil Corporation XOM announced the commencement of production from the second phase of the Liza development, situated on the Stabroek Block offshore Guyana.

ExxonMobil operates the Stabroek Block, with a 45% ownership interest. The latest development takes the total production capacity in the country to more than 340,000 barrels per day (bpd) in seven years after its first discovery.

The company now has two production facilities operating offshore Guyana. Notably, ExxonMobil is responsible for the country’s entire oil and natural gas production. The company began production from the Liza Phase 2 development with the help of the Liza Unity vessel. It is the first floating, production, storage, and offloading vessel (FPSO) in the world, which has been awarded the Sustain-1 notation by the American Bureau of Shipping due to its sustainable design and operating techniques.

The total recoverable resources of the Stabroek Block are currently estimated to be more than 10 billion barrels of oil equivalent. The second phase of the Liza project is expected to reach the peak production of 220,000 bpd of oil this year. The current recoverable resources have the capacity to support up to 10 projects. ExxonMobil expects that four FPSOs will be operational on the Stabroek Block by 2025-end, with a capacity exceeding 800,000 barrels per day.

Payara, a third development at the Stabroek Block, is currently under construction. It is set to deliver first oil in 2024, with a production capacity of 220,000 bpd. A field development plan for a fourth Stabroek development (Yellowtail project) has been submitted to the Guyana government for approval.

Guyana depends on imported fossil fuels for most of its energy requirements. This makes electricity costly and often unreliable. ExxonMobil is making great efforts in reframing the country as a new energy hub. Notably, the development of the new projects and continued exploration success offshore would enable the steady progress of Guyanese capabilities and enhanced economic growth.

Company Profile & Price Performance

Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.

Shares of ExxonMobil have outperformed the industry in the past six months. XOM has gained 43.9% compared with the industry’s 39.1% growth.

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ExxonMobil currently sports a Zack Rank #1 (Strong Buy).

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