Exxon Mobil Corp. (NYSE: XOM) said June 12 it started development drilling in three offshore Guyana projects, which could produce more than 500,000 barrels per day (bbl/d) of oil.
The Irving, Texas-based company said it expects to start producing oil from these developments in 2020.
The projects, known as Liza Phase 1, include the conversion of an oil tanker into an FPSO vessel, which would have a production capacity of 120,000 bbl/d of oil.
A second FPSO with a capacity of 220,000 bbl/d is being planned and a third is under consideration, the company said.
Exxon Mobil said in March that projects in Guyana and the Permian Basin region of Texas and New Mexico, as well as refining and chemical plant expansions, should drive earnings gains.
Never has the opportunity been greater for oil and gas companies to take on a larger role to lead in the ongoing energy transition, says Angie Gildea, who serves as national sector leader for energy, natural resources and chemicals at KPMG.
Oil companies have come under increasing pressure from shareholders, governments and activists to show how they are changing their businesses from fossil fuels toward renewables, and to accelerate the energy transition.
The $8 billion Jordan Cove LNG export project in Oregon is one of several major energy projects that received strong support from former U.S. President Donald Trump but have since failed to move forward.