Guyana’s oil helped Exxon secure highest first-quarter profits in 24 years - US$11.4B Stabroek Block partners now racing towards year-end approval for 6 oil project th

E x x o n M o b i l date forward from 2024 to Corporation’s Chairman and 2023 and expect the project Chief Executive Officer to be up and running in the (CEO), Darren Woods fourthquarter disclosed yesterday that the

P a y a r a , a s t h i s American oil giant secured a newspaper understands, will record breaking first quarter add another 220,000 barrels earnings for 2023 totalling of gross capacity and will be US$11.4B. Woods said this the third consecutive FPSO was no doubt boosted by to start production ahead of prime oil projects in Guyana schedule. It will also work andtheUSA. alongside the Liza Destiny

After receiving the oil will also be stored in relevant government cargo tanks inside the FPSO approvals this week for its hull which have the capacity fifth project at the Uaru field to hold approximately 2 in the Stabroek Block, million barrels of oil. During ExxonMobil and its partners p e a k p r o d u c t i o n , now have their eyes fixed on approximately every three to securing the blessings of the six days, the oil will be relevant regulators for their pumped from the FPSO to a sixthoilproject. conventional oil tanker,

He also said the strong andLizaUnityvesselswhich financial performance is a areproducingapproximately reflection of Exxon’s lean 380,000to4000barrelsofoil cost and execution perday efficiencies.

Taking the foregoing

During his company’s data into account, Woods earnings call, Woods said, said, “You can see that our “Following a record year, ships are in operationas well underlying performance ExxonMobil delivered the as increased production in remains rock-solid, and well highestfirst-quarterearnings thePermianBasin. ahead of our competition, in our history even as energy Hesaidtheincreasemore reflecting the many prices and refining margins than offset divestments and improvements we’ve made moderated from the fourth the expropriation of overthelastsixyearsand,of quarter This ongoing Sakhalin-1 well operations course, the hard work of our success reflects the hard in Russia, which it no longer people.” work of our people, accounts for, but which, Woods added, “I’m executing our strategic importantly, remains part of extremely proud to lead a priorities, and fully globalsupply company made up of so leveraging our competitive In Guyana, Woods said many talented men and advantages.” he was pleased to announce womencommittedtofinding

Through investments in that the company reached innovative solutions, advantaged assets such as final investment decision for meeting society’s greatest Guyana and the USA and Uaru, the fifth offshore needs As our results c o s t a n d o p e r a t i n g project, which will bring on demonstrate, we’ve built a discipline, Woods said his even more production from strong portfolio of company was able to deliver this low-cost, low–carbon advantaged businesses that the structural earning intensity resource. He said are better leveraging the improvements outlined in its Uaru will provide an synergies of our integrated Corporate Plan Update last additional 250,000 barrels businesses, our scale and, December, and expand the per day of gross capacity, increasingly, our unique energy supplies needed to with startup targeted for technicalcapabilities.” meet growing global 2026. That project is also When combined with the demand. expected to cost some strength of its balance sheet,

Compared to the first US$12.7B. Woods boasted that Exxon quarter of 2022, Woods said He also noted that the has the capability to win the company added about floating production, storage, across a wide variety of 300,000 oil-equivalent and offloading vessel for market conditions and barrels per day to global Payara is on site, and well deliver strong returns while supply, primarily from a ahead of schedule. He noted meeting the evolving needs 40% increase in production that last year, the company ofsociety,includingtheneed from Guyana where two pulled the Payara start-up toreduceemissions.

In fact, Hess Corporation which is owned/operated by which has a 30 percent third parties. The tanker will interest in the block said thenexporttheoiltobuyers. recentlythat“thepartnership EEPGL was also keen to is on track for final note that it will utilize submission of the field onshore support facilities to development plan to the support drilling the wells, government of Guyana later installing the offshore this year.” Chief Executive production facilities, and Officer (CEO), John Hess This sixth project which operating the offshore said the approval for the i s b e i n g l e d b y production facilities This sixth project is also expected ExxonMobil’s affiliate, Esso willincludebutisnotlimited bytheendoftheyeartoo. Exploration and Production to shorebases, warehouses,

The Hess boss was in Guyana Limited (EEPGL) storage and pipe yards, high praise of the Guyana will seek to develop massive fabrication facilities, fuel Government as he noted that amounts of oil from the supply facilities, and waste the approval process, while Whiptail discovery field in management facilities in rigourous, is one that is theStabroekBlock. Guyana. working in the interest of Oil production from the Helicopters and supply bothparties. project is expected to last boats will also be needed to

During his company’s approximately 20 to 30 support the Project. At peak, first quarter earnings call for years. EEPGL will drill EEPGL said it will be 2023, the Hess boss said, approximately 40 – 65 wells supported by approximately “The Guyana government is offshore to support 1,200 offshore personnel veryrigorousandoverseeing extraction of the oil from during the well drilling and the government and below the sea floor A oil production installation regulatory approvals. I think m a s s i v e F l o a t i n g stages. This number will there’s a very good working Production, Storage, and decrease to less than 200 r e l a t i o n s h i p w i t h Offloading vessel (FPSO) personnel during the ExxonMobil as operator and will also be moored on production phase. A smaller thegovernmentitself.Ithink location in approximately number of personnel will be the approval process is 1,700m of water depth and utilized at the onshore appropriateforbothsides.” will remain there throughout supportfacilities.

Hess added, “The theproductionstage. The sixth project is government obviously has The FPSO will have a e x p e c t e d t o c o s t their own priorities and the peak capacity to produce up approximately US$12B, ExxonMobil as operator to approximately 220,000 given its similarities to addresses those. So I’d say barrels to 275,000 barrels of EEPGL’s fifth project at the the approval process oilperday EEPGLwaskeen Uaru project. EEPGL had continues to be one that’s to note that these estimates said the Uaru development diligent and thoughtful for are preliminary and are would cost Guyanese bothsides.” subject to change. Processed US$12.6B.

Charlestown, Georgetown, Guyana.

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Editorial

Bar Owners And Boozing

Guyanesebarlicensedholdershaveaheavyduty,atough job. Ithastodowithboozingcustomers,andwhenenoughis enough. Or,topresentthismoredirectly:whenitistimeto stopsomeonefromhavinganotheronefortheroad. Theroad iswherethetroublelies,inthatothercitizenssoberlygoing about their business can be fatally or seriously injured. Drinking above the legal limit and driving can be a lethal combination, and this is what places licensed holders in a roughspot.

The more they sell, the more quickly they clear their overhead, the more money they make. Also, some of their customers may be their friends, as well as longstanding drinking partners. There is both challenge and hardship to holdeithertotheline,meaning,nomoredrinksatthisliquor establishment. Regardless, licensed holders have an obligationfirsttobesoberthemselves,andtoactinasensible manner,andfromwhichonlytheconstructiveusuallyresults.

Amendments impacting Guyana’s Motor Vehicle and Road Traffic Act and the Intoxicating Liquor Licensing (Amendment) Act went into effect in 2022. Existing obligations, as they applied to licensed holders, were expanded. The obligations that are vested in a licensed holder also apply to “any servant” of such holder, which normallymeansabartender,waiter/waitress,andothersuch employees.

The law requires the licensed holder to post signs in prominentplacestodiscouragedrinkinganddriving. Itisnot forshowonly,butmustbefollowedinbothletterandspirit. Clearly,therearetimes,whenapatronhasimbibedtoomuch, withsignalspresent. Thesecouldrangefromslurredspeech tounsteadygaittoaggressiveandotherunacceptableforms of behaviour There are times when it is apparent that a drinker is an obvious danger to himself and others, which mustbecombatted.

Weliveunhappilywithnumerousconsequencesofdrunk drivingthatendedupinbothonandofftheroadhorrors. On the roads, there have been dead or broken bodies, and wrecked vehicles, while away from the roads, there are our hospitals and workplaces dealing with the fallouts. But the worsttraumasofallthatattenddrinkinganddrivingarefelt byfamilieslefttocopewithnewcircumstances.

Licensedholdershavetheirroletoplay,anditisaserious one. Though difficult, the standard has to be, not another drink, not here, and definitely not at this time. Moreover, licensedholdershavetobeonthealertforthose‘partners-incrime’ who seek to circumvent restrictions placed on intoxicatedpatronsespeciallydriversbysteppingforwardto buy more drinks for them. Designated drivers also must comeunderthegimletgazeoflicensedholders,sothatthey are held to the same rigid standard, if only to protect the drinkers themselves, and the wider public. A growing element to the dangerous drinking culture in Guyana is underaged drinking. In every instance that we have identifiedlicensedholders(andtheirworkers/servants)must bevigilantandactwiththegreatestprudence,withthepolice appropriatelyinformed.

Itisbettertobesafethansorry,andasmuchasdrinking likeamanhaslongbeenthecultureofGuyana;toomuchofit hasbeendestructive. Thelongtrailofdeathsandinjurieson local roads furnishes its own confirmation. In the final analysis, drinking to excess, beyond the legal limit, and drivinghavetoooftenprovedtobetheworsecocktailever,a totally lethal one. The experts advise that two drinks wellspacedoutareborderlinerelativetosobrietyandsafety,but fewarethelocaldrinkerssatisfiedwithtwoofanything,be theybeersorhardliquor

Undoubtedly, licensed holders and servants have significant challenges before them. Some can drink like a fishandshownooutwardsigns,aresteadyasastoneontheir feet, and showing no change in speech. Then again, some drinkers may have started their festivities at another establishment, which makes a demanding job more demanding. Notwithstandingalltheseaspects,barlicensed holdershavetheirobligationsunderthelawandfromthose theymustnotshrink. Itmakesforasafer,healthierlocalroad system.