ExxonMobil excludes offshore Guyana projects from capex cuts

April 7, 2020
ExxonMobil plans to cut its 2020 capex spending by 30%.

Offshore staff

IRVING, TexasExxonMobil plans to cut its 2020 capex spending by 30%.

The company took this decision in response to low commodity prices resulting from oversupply and demand weakness brought on by the spread of COVID-19.

It now anticipates capital investments of around $23 billion, down from previously guidance of $33 billion.

ExxonMobil stressed that developing the numerous deepwater discoveries in the Stabroek block offshore Guyana remains an integral part of its long-term growth plans.

Operations onboard the FPSO Liza Destiny are unaffected, and the second phase of the Liza field development remains on target for start-up in 2022, with the Liza Unity production vessel currently under construction.

However, as the company waits for government approval to proceed with a third production vessel for the Payara development, some planned 2020 activities are in the process of being deferred, and this could potentially delay the start of production by between six and 12 months.

In Mozambique, the final investment decision for the Rovuma LNG project, which was anticipated for later in the year, has been delayed.

ExxonMobil, the partners, and the government are collaborating to optimize development plans through improved synergies and assessing opportunities related to the current lower-cost environment. Work on the Coral LNG development in the same region continues as planned.

To lessen risks presented by COVID-19 and maintain its operations, ExxonMobil has put in place enhanced cleaning procedures and modified work practices at its various sites around the world.

It is also maximizing production of products critical to the global response, including isopropyl alcohol, which is used to manufacture hand sanitizer, and polypropylene, used to make protective masks, gowns and wipes.