News Americas, NEW YORK, NY, Fri. May 26, 2023: As Guyana marks its 57th anniversary of independence from Britain today, reports indicate that Exxon Mobil Corp and its partners reported a substantial earnings figure of US $5.8 billion in 2022 from offshore oil production in the South American, CARICOM nation.
The audited results were disclosed as part of an appeal against a court ruling that found the group in breach of insurance obligations related to oil-spill coverage. This marks the first public disclosure of the profits earned by Exxon, Hess Corp, and CNOOC Ltd from their offshore operations in Guyana, where they account for the entire oil output of the country. Production in Guyana began in 2019, and the consortium has steadily increased its production capacity.
In the appeal, Exxon emphasized its technical and financial capabilities to effectively respond to any adverse events, assuring the authorities of its spill-mitigation technology and its ability to cap major oil spills promptly. The group holds $600 million in liability insurance for the Liza One offshore platform.
According to the financial statements, Exxon earned $2.74 billion, Hess earned $1.53 billion, and CNOOC pocketed $1.55 billion from offshore oil production in 2022. By the end of the year, the consortium was producing around 375,000 barrels of oil per day (bpd) from two offshore vessels and has plans to ramp up production to 1.2 million bpd by 2027.
In terms of taxes, Exxon incurred approximately $281 million in expenses in Guyana last year, compared to none in 2020. The financial statement, audited by Guyanese firm TSD Lal & Co, also revealed that the group holds approximately $19 billion in assets in Guyana. At the end of the year, Exxon’s assets in the country were valued at $10.76 billion, while Hess and CNOOC held assets worth $4.28 billion and $3.9 billion, respectively, according to the filing.