ExxonMobil Consortium Reports $10.4B Profit From Guyana in 2024

Core Insights - Exxon Mobil Corporation (XOM) and its partners reported a combined profit of $10.4 billion from oil operations in Guyana in 2024, a 64% increase year-on-year driven by expanded production capacity and favorable fiscal terms [1][10] Group 1: Financial Performance - ExxonMobil alone recorded $4.7 billion in adjusted earnings from its Guyana operations, contributing significantly to its global earnings of $33.46 billion [2] - Hess Corporation reported $3.1 billion in profits from Guyana, up from $1.9 billion in 2023, while CNOOC earned $2.5 billion, rising from $1.5 billion [2] Group 2: Production Capacity - Oil output from the XOM-led consortium increased by 3% year-over-year to an average of 631,000 barrels per day (bpd) in Q1 2024, reaching 668,000 bpd by mid-Q2 2024 [3][10] - The consortium's total expenses in Guyana rose by 42% to $4.9 billion in 2024, yet it still delivered a pre-tax profit of $12.8 billion [5] Group 3: Future Projections - ExxonMobil projects that production capacity could reach 1.2 million bpd by 2027 and further expand to 1.7 million bpd by the end of the decade [4] - A fourth floating production, storage, and offloading (FPSO) unit is expected to boost output to over 900,000 bpd in the near term [4] Group 4: Strategic Developments - The Guyana government recently canceled a license awarded to a rival consortium, reinforcing the control of the XOM-led group over the offshore oil basin [7][10] - ExxonMobil and its partners are now focusing on natural gas development to meet Guyana's rising domestic energy needs [6] Group 5: Industry Context - Guyana is emerging as a critical pillar in ExxonMobil's upstream portfolio, highlighting the company's broader growth strategy in low-cost, high-margin oil basins [8]