Exxon Mobil's New Yellowtail Venture Marks Major Energy Boost
Exxon Mobil Corporation Launches Yellowtail Development
Exxon Mobil Corporation (NYSE: XOM) has recently commenced production at its Yellowtail development, significantly boosting its production capacity. This latest venture marks a critical point in the operations of ExxonMobil Guyana, which is part of the larger offshore Stabroek block project.
Introducing ONE GUYANA Floating Production Vessel
The ONE GUYANA floating production storage and offloading (FPSO) vessel has joined the ranks of existing units like Destiny, Unity, and Prosperity. This addition has elevated the cumulative production capacity in the Guyanese waters to over 900,000 barrels of oil per day, underscoring the significant milestones being achieved.
Production and Storage Capacity of Yellowtail
ONE GUYANA, being the most substantial FPSO on the Stabroek block, is set to average about 250,000 barrels of oil per day. Furthermore, it's designed to hold up to two million barrels of crude oil, which is referred to as Golden Arrowhead in the market.
Significance of the Yellowtail Project
The early launch of Yellowtail is a remarkable milestone not just for ExxonMobil but also for the people of Guyana. Dan Ammann, president of ExxonMobil Upstream Company, highlighted that a significant portion of the workforce is Guyanese, comprising over 67%, and more than 2,000 local businesses are benefiting from this project. This cooperation boosts not only production but also local economies.
Future Oil Production Goals
By the year 2030, ExxonMobil aims to ramp up its oil production from projects in Guyana to a remarkable 1.7 million oil-equivalent barrels per day. This goal is ambitious yet attainable, considering the successful completion of previous offshore mega-projects, which have been delivered ahead of schedule and within budget.
ExxonMobil's Strategic Partnerships
ExxonMobil Guyana Limited operates the Stabroek block with a 45% ownership stake, collaborating with partners Hess Guyana Exploration Ltd. at 30% and CNOOC Petroleum Guyana Limited at 25%. These partnerships are vital for the continued success and expansion of oil production activities in the region.
Performance of XOM Stock
In recent updates, XOM shares have faced some challenges, with a noted loss of over 9% in value over the past year. Currently, XOM is trading 1.30% higher, reaching $107.43. Investors looking to capitalize on ExxonMobil's performance might also consider alternative investment vehicles, such as the Global X Funds Global X PureCap MSCI Energy ETF (NYSE: GXPE).
Frequently Asked Questions
What is the significance of the Yellowtail development?
The Yellowtail development is crucial as it enhances Exxon Mobil's overall production capacity beyond 900,000 barrels per day and contributes significantly to local economies.
How much oil does the ONE GUYANA vessel store?
ONE GUYANA FPSO can store approximately two million barrels of crude oil, optimizing the logistics of extracting and delivering oil.
What are Exxon Mobil's future production goals in Guyana?
Exxon Mobil aims to reach a production goal of 1.7 million oil-equivalent barrels per day by 2030.
Who are Exxon Mobil's partners in the Stabroek block?
Exxon Mobil's partners in the Stabroek block include Hess Guyana Exploration Ltd. with a 30% stake, and CNOOC Petroleum Guyana Limited at 25% ownership.
What is the current performance of XOM stock?
XOM stock has had a turbulent year, losing over 9% in value recently, but it has shown a slight recovery, trading at $107.43.
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