million, down $165 million from fourth-quarter 2015. Non-US downstream earnings of $971 million were $55 million
higher than the prior year.
Chemical earnings of $872 million were $91 million lower than fourth-quarter 2015. Margins decreased earnings by
$10 million. Volume and mix effects decreased earnings by
$30 million. All other items decreased earnings by a net $50
million due to unfavorable inventory effects.
US chemical earnings of $352 million were $168 million
lower than fourth-quarter 2015. Non-US chemical earnings of
$520 million were $77 million higher than the prior year.
country manager says
Liza to flow at 100,000 b/d
ExxonMobil Corp.’s giant Liza discovery offshore Guyana
will have an average production of 100,000 b/d of oil when it
begins flowing in 2020 according to the company’s Country
Manager Jeff Simons. It also expects to produce 165 MMscfd
of natural gas that will be mainly used for reinjection into
Speaking this week at the Energy Chamber of Trinidad
and Tobago’s annual energy conference, Simmons said the
company will use a floating production, storage, and offloading (FPSO) unit to produce the oil and would then export it,
and raised the possibility of it being refined in nearby Trinidad and Tobago.
He told delegates that the firm planned to drill 17 production wells with subsea tiebacks to the FPSO and that ExxonMobil was confident it could meet the early startup deadline
because of its use of “cutting edge” technology.
Simmons said no decision had been taken as of yet on
whether ExxonMobil would use one or two drillships during
the development stage. He noted that ExxonMobil has always
been committed to the maximum use of local content but admitted that during production very few jobs will be created in
Guyana because a total of 60 people will be required for the
production of the oil.
ExxonMobil’s Country Manager said the company has had
to use Trinidad and its services during the exploration phase
due to the Caribbean island’s relatively close proximity, its
long history in oil and gas, and its capacity to service the industry.
Asked if he thought that the company’s production out of
the Starbroke block could increase with additional discoveries
in the offing, Simmons was careful to point out that there was
ExxonMobil’s 4Q results
ExxonMobil Corp. reported fourth-quarter 2016 earnings of
$1.7 billion, including an asset impairment charge of about
$2 billion mainly related to dry gas operations with undeveloped acreage in the Rocky Mountains region of the US.
The results were down from the $2.8 billion posted in
fourth-quarter 2015. Also impacting the results were higher
liquids realizations partly offset by weaker refining margins.
Full-year 2016 earnings were $7.8 billion compared with
$16.2 billion a year earlier, reflecting lower commodity prices and refining margins.
Fourth-quarter capital and exploration expenditures of
$4.8 billion were down 35% from fourth-quarter 2015. Full-year capital and exploration expenditures of $19.3 billion
were down 38% from 2015.
Impairment sinks upstream
Upstream earnings were a loss of $642 million in the quarter. Excluding the impairment charge, earnings were $1.4
billion, up $528 million from fourth-quarter 2015. Higher
liquids realizations partially offset by lower gas realizations
increased earnings by a net $510 million.
Production of 4.1 million boe/d was down 127,000 boe/d
compared with fourth-quarter 2015. Liquids production totaled 2. 4 million boe/d, down 97,000 boe/d for fourth-quarter 2015 as field decline and lower entitlements were partly
offset by increased project volumes, notably in Nigeria and
Indonesia. Natural gas production was 10. 4 bcfd, down 179
MMcfd from fourth-quarter 2015 as higher project volumes
were more than offset by field decline and lower entitlements.
US upstream earnings were a loss of $2.3 billion in the
quarter, including the $2-billion impairment. Excluding the
charge, earnings were a loss of $301 million, an improvement of $237 million from fourth-quarter 2015. Non-US upstream earnings were $1.7 billion, up $291 million from the
prior year period.
Downstream earnings were $1.2 billion, down $110 million
from fourth-quarter 2015. Weaker refining and marketing
margins decreased earnings by $570 million, while favorable volume and mix effects increased earnings by $200
million. All other items increased earnings by $260 million
as gains from divestments in Canada were partly offset by
higher maintenance expense and unfavorable foreign exchange impacts.
Earnings from the US downstream segment reached $270