ExxonMobil to Temporarily Shut Guyana Oil Project

SEATTLE (Oil Monster): Leading U.S. oil and gas producer ExxonMobil announced its decision to shut down two offshore oil production projects in Guyana temporarily. The shutdown is aimed at connecting a natural gas pipeline and will be in effect for a period of two weeks each between July and August.

According to Alistair Routledge, president of ExxonMobil’s Guyana business, the proposed 225 kilometres gas pipeline is expected to feed Guyana’s flagship Stabroek project, which is aimed at reducing the country’s dependence on imported fuels, thus delivering lower energy costs to its residents.

ALSO READ:

ExxonMobil Made Final Investment Decision for Development Offshore Guyana

ExxonMobil Completed Acquisition of Denbury

The proposed gas pipeline will connect offshore production vessels to a power plant and a natural gas processing facility. However, the power plant and transmission lines are not expected to become fully operational until end-2025. The construction of the offshore section of the pipeline is almost 70% complete.

ExxonMobil has been widely expanding its presence in Guyana region over the past several years. So far this year, the company has recorded capital expenditures of nearly $102 million, which is significantly higher than investment in the region by other oil majors.

ExxonMobil had reported first quarter 2024 earnings of $8.2 billion or $2.06 per diluted share. The company had made capital and exploration expenditures totalling $5.8 billion during the quarter.