ExxonMobil’s upstream production growth
ExxonMobil (XOM) has a robust project pipeline, which is expected to start adding to its earnings. The resources, which are soon expected to be converted into feasible projects, are expected to strengthen and grow the pipeline.
ExxonMobil expects five of its major upstream projects to start production in 2018. These projects are expected to add 0.34 million boepd (barrels of oil equivalent per day) of working interest capacity.
These projects are Kaombo in Angola, Hebron in Canada, Upper Zakum in UAE, Odoptu 2 in Russia, and Barzan in Qatar. Hebron has already started production. The field is expected to have 150,000 barrels of oil per day of peak production.
ExxonMobil expects around 25 projects worldwide to add 1.0 million barrels of oil equivalent barrels per day, net to XOM, by 2025. Plus, the company expects a fivefold increase in its production in the Permian Basin.
ExxonMobil’s vast resources
ExxonMobil has vast resources in Permian, Mozambique, Guyana, Brazil, and Papua New Guinea. The company plans to expand its activities further in the Permian Basin. ExxonMobil has 20 rigs being operated in the region, which are expected to be ramped up to 30 rigs by the fourth quarter.
Liza Phase 1, offshore Guyana, is expected to begin production in 2020. The Stabroek block, which contains Liza, also contains other promising fields such as Liza Deep, Snoek, and Payara.
In the second half of 2017, XOM announced its fifth discovery in the block—in the Turbot well, located 30 miles southeast of Liza Phase 1. In the first quarter, XOM announced its sixth oil discovery in the Stabroek block in Ranger-1 Well, located 60 miles northwest of Liza Phase 1. Recently, XOM announced its seventh oil discovery, Pacora, in this promising block.
With such massive resources, XOM is presumed to see an expansion in its Upstream portfolio. Projects that are expected to come online should result in an upsurge in XOM’s production going forward.
In the next part, we’ll consider XOM’s downstream growth opportunities.