ExxonMobil on Monday announced that it had hit the staggering mark of one billion barrels of oil from its wells in Guyana’s waters.

The announcement came as there is continuing public concern about the amount of revenue that is accruing to this country and discontent over the terms of the 2016 Production Sharing Agreement (PSA).

In its statement, ExxonMobil said “Producing one billion barrels of oil is an extraordinary milestone anywhere in the world. In Guyana, it represents a story of vision, partnership, and excellence that has reshaped the nation and the global energy landscape”.

It noted the just over a decade ago, ExxonMobil and its co-venturers made a world-class discovery in Guyana’s Stabroek block. First oil flowed from the Liza field less than five years later—one of the fastest deepwater development timelines in the industry, the company said.

And less than seven years later, production reached a billion barrels, it boasted.

“Since then, Guyana’s growth has been remarkable. What began with a single producing asset has grown into four major offshore developments supported by the Liza Destiny, Liza Unity, Prosperity and ONE GUYANA floating production, storage and offloading (FPSO) vessels. Together, these projects have increased installed capacity to more than 900,000 barrels per day, helping transform Guyana into a major energy producer in less than a decade”.

Looking ahead, ExxonMobil said that Uaru is expected to start up by the end of this year. Construction is also underway on the sixth and seventh approved projects, Whiptail and Hammerhead, with Whiptail targeted for startup in 2027 and Hammerhead expected to begin output in 2029.

“The production of the one billionth barrel highlights the importance of Guyana’s resources not only to the country, but also to global energy markets”, the company said.

It said that with an estimated resource base of just under 11 billion oil-equivalent barrels and plans for up to eight offshore developments by 2030, the Stabroek block is helping meet demand across the Americas, Europe and Asia, contributing to global energy security and market stability. The 11 billion barrels resource estimate has been challenged by commentators given the several discoveries of oil that occurred after that figure had been given,

“For ExxonMobil, this demonstrates what is possible when world-class resources, strong partnerships and industry-leading capabilities come together”, the company stated.

It said that the milestone was made possible through the “collaboration with the government of Guyana, local communities, and thousands of Guyanese employees, contractors and suppliers who have helped build the country’s energy industry. Their talent, commitment and partnership have been fundamental to every stage of the journey. Today, Guyanese workers and businesses play an increasingly important role across operations and project development”.

ExxonMobil said it has been proud to contribute its exploration capabilities, advanced technology, and deepwater expertise to support Guyana’s development. 

“Together, we have helped bring world-class resources to market with industry-leading speed and execution. Alongside our offshore investments, we continue to invest in Guyana’s future through workforce development, local supplier growth and a (US) $100 million initiative to strengthen STEM education for Guyanese students. It’s our privilege to help equip the next generation of Guyanese leaders with skills for the opportunities ahead”, the company said.

It added that shared commitment has helped transform the Stabroek block into one the most successful energy developments in the world, unlocking lasting value for Guyana and global energy markets.

“One billion barrels reflects the strength of partnership and the dedication of the people behind it. As additional projects come online and production continues to grow, we look forward to continuing our partnership with the people of Guyana to deliver reliable energy to the world”, the company said.

Both the APNU+AFC government – which signed the 2016 PSA – and the current government have been blasted for not returning to the negotiating table with ExxonMobil to increase the present royalties of 2% and to improve profit share to Guyana.

Additionally, the failure of the government to insist on ring fencing had allowed the company to continue creaming off up to 75% of oil production for cost oil, thereby preventing higher profits to Guyana from the fur producing wells.

President Irfaan Ali on August 18 said Guyana’s share of profit oil produced from the Stabroek Block has risen from 12.5% to approximately 39.8% as the amount being used by the ExxonMobil-led consortium for cost recovery has fallen sharply.

He said, the contractors had recovered approximately US$55 billion in expenditure two years earlier than projected, leaving a larger portion of current production to be classified as profit oil.