U.S. oil and gas giant Exxon Mobil Corp. (NYSE:XOM) has unveiled plans to increase spending to $28-$33 billion annually with a goal of lifting oil and gas output by 18% by 2030. Exxon has set a target to increase overall oil and gas output to 5.4 million bpd by 2030, up about 18% from 4.58 million bpd currently. According to Exxon CEO Darren Woods, the increased project spending is expected “to generate returns of more than 30% over the life of the investments.” 

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Exxon aims to more than triple its production in the Permian to 2.3 million barrels per day (bpd) by 2030 and pump 1.3 million bpd from its lucrative Guyana operations. 

Last month, Exxon announced ithas reached 500M barrels of oil produced from Guyana’s offshore Stabroek block, just five years after it kicked off production at the location. According to the company, the first three projects–Liza Phase 1, Liza Phase 2 and Payara–are already pumping more than 650K bbl/day. The Exxon-led consortium which includes Hess Corp. (NYSE:HES) and China’s Cnooc (OTCPK:CEOHF) have set a target to reach production of at least 1.3M bbl/day of oil by year-end 2027, a feat it hopes to achieve when six approved offshore projects come online. 

Data by the Guyana government has revealed that the consortium’s agreement generated $6.33B for the partners last year, with Exxon netting $2.9B, Hess earning $1.88B, while Cnooc amassed $1.52B from Stabroek. Exxon Mobil owns 45% of the Stabroek block; Hess 30% while Cnooc owns a 25% stake.

Exxon will soon start generating natural gas at its Guyana assets. Netherlands-based SBM Offshore (OTCPK:SBFFF) (OTCPK:SBFFY) has completed the $1.23B sale of its fifth floating production, storage, and offloading (FPSO) unit to Exxon for use in offshore Guyana. With a production capacity of 250,000 barrels of oil per day, the FPSO Jaguar has a daily associated gas treatment capacity of 540 million cubic feet and a water injection capacity of 300,000 barrels per day. ExxonMobil is progressing with plans to build a Gas to Energy Project in cooperation with the Government of Guyana, with start-up expected by the end of 2024. 

By Alex Kimani for Oilprice.com

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