Exxon Mobil Corp. took the first step toward its seventh oil project in Guyana, a clear signal the supermajor intends to expand crude output from the South American nation into the next decade. The Hammerhead project will pump as much as 180,000 barrels a day as soon as 2029, pending Guyanese government approval, Exxon country manager Alistair Routledge said in an interview. Exxon filed an environmental authorization application with the government Monday for an investment that’s expected to boost the country’s overall production capacity to nearly 1.5 million barrels a day, about the same as OPEC member Nigeria.
Proceeding with an additional investment likely to total several billion dollars underlines the company’s commitment to the sparsely-populated South American nation. Exxon’s aggressive plans have already made Guyana the third-fastest growing oil-producing country outside of OPEC in recent years and a key contributor to global supplies. Guyana has been a vital part of Exxon’s post-pandemic stock revival because its crude is among the most profitable outside of the Middle East, with a break-even cost of less than $35 a barrel.
Source: msn.com