Devin McDermott: Great, thanks so much.
Operator: The next question is from Doug Leggate with Bank of America. Your line is open, please go ahead.
Doug Leggate: Good morning. Thanks for taking my question. Good morning everyone. Darren, forgive me – I’d like also to take advantage of Neil being on the call and follow on with a Guyana question, if I may. Neil, if you don’t mind, I’d like to frame this question a little bit because a couple of years ago, you talked about if the deeper resource potential proved to be as prolific as the original targets that you had in the area, you could look to double your resource potential from 10 – at that time, you had announced potentially significantly larger. You haven’t updated that resource number in a while. Now, you’ve got Lancentfish, it looks like Fangtooth is in the queue based on your EIS submissions to Guyana, but yet you still talk about production capacity and not production.
My question to you is with capability obviously keeping these boats filled for an extended period of time, what do you ultimately see as the production capacity–sorry, actual production as opposed to capacity trajectory through the end of the decade at this point?
Neil Chapman: Yes, thanks Doug. There’s probably two parts to that question. One is exploration and then one is production and capacity. Let me just handle exploration first. You know, we’ve had, as you’re aware, three discoveries this year, including Lancetfish-2, which is the most recent one. We continue to integrate those results, both of exploration and appraisal drilling, and we’re going to update that resource base when we see it is a significant change. Our program of exploration and appraisal continues, and the way I like to frame it is in the southeast corner of the Stabroek Block, we’re continuing to appraise around our discoveries, and that will take a lot of work and a lot of activity. You know we have six drill ships in the basin and they’re both–they’re in development appraisal and exploration drilling.
In addition to all that appraisal drilling that we’re doing in the southeast part of the block, we’re looking for what I would describe as anchor prospects further to the north and further to the west. We continue to look and we’ve probably got order of magnitude three, what I’d call true wildcats or exploration targets, looking for [indiscernible] wells in the next 10 to 12 months, something like that. That can change based on results of either the appraisal or the exploration drilling. You know, we’re going to update when we see something meaningful and when we see something significant. We’ve been very clear that we had six FPSOs in the pipeline – they are firm and I just in one of the previous questions outlined all of those.
Indeed, they will have a capacity and you strive to keep them full all the time. As you know, Doug, one of the beauties about the Stabroek Block is the density of the resource and the proximity of these boats, which gives that potential for tie-backs well into the future. But the water cut will increase, as everybody knows, in deepwater, so we constantly look. We like to talk about capacity and we optimize as we go, and we will increase the production versus the nameplate capacity as we go, and so that’s why I think what we can be firm on is we will have six boats by the end of 2027, they will have a nameplate capacity of 1.2, and obviously we will strive to keep them as full of liquids or of oil as we can over that period. I think as we get closer to 2027, obviously we will update those numbers, Doug.
Doug Leggatte: Appreciate the full answer, Neil. Thanks so much.
Neil Chapman: Yes, sure. Thanks.
Operator: The next question is from Stephen Richardson with Evercore ISI. Your line is open, please go ahead.
Stephen Richardson: Great, thank you. We’re going to keep Neil busy this morning. Another one on the Pioneer disclosure – appreciate the incrementals. Neil, I guess it sounds like from your previous comments, the million barrels a day target, that output is still there from the legacy composition and you’re thinking about the additive from Pioneer. Can you talk a little bit about as you integrate the two assets, are you assuming some high grading around some of the higher quality acreage? Do you envision prioritizing more activity on one asset versus the other, or are you still kind of thinking about them as two separates? Also, maybe you can just talk a little bit about assumptions around acreage bolt-ons or any positions as well. Is there a lot of work to do in terms of extending some of this lateral length that you’re talking about? Thanks very much.
Neil Chapman: Yes, first of all, I would say it’s very early in the process, of course. We’ve done the due diligence, we’re into transition now. I think it’s very important to make the point, Pioneer are a very, very capable organization. They’ve demonstrated that. What we’re really excited about is the combination of these two organizations. Pioneer has a deep, deep understanding of the Midland Basin. As we’ve talked about, this is absolutely in the fairway of Tier 1 quality resource, and Pioneer has done an exceptional job at developing that resource. For our side, we’ve got a whole range of different operating techniques, development plans and technologies, and it’s the integration of those that we’re most excited about.
Everything we’re seeing in the initial transition work would suggest all of that is correct. If you just look at the acreage position and you look at where Exxon are–Exxon Mobil are and Pioneer are, obviously it gives an opportunity for both high grading the inventory, and that includes bolt-ons. I have to say that Scott Sheffield and his organization have done an extraordinary job bolting on and increasing their acreage in the basin, and they have a very, very capable land organization, and we look forward to working with those firms. I think it’s a combination that’s going to be most powerful in developing that resource.
Darren Woods: I’d just add to what Neil said, if you look at what we’ve been doing over the last six years, it’s really been around integrating our organizations, consolidating them, and making sure that we’re concentrating like capabilities into the same organization, and that is paying huge dividends. This is no different. The intent is to fully integrate the Pioneer organization and its people into our business. My expectation is we’ll bring a lot of advantages to their acreage, but at the same time, we expect their people to bring a lot of advantages to other parts of our business, including what we’re doing in the Delaware. Our whole strategy is really around the value you create by taking experts in areas and getting the collaboration and the innovation that comes from that, so there won’t be a separate approach here.
It will be one. I think what you’re seeing today, to Neil’s point, the fact that we’re in very early stage, but as we get together and work through the plans and the development, it will be one seamless integrated organization and plan.
Neil Chapman: Steve, just one small addition to illustrate that. I’ve talked before that we have a basin-wide remote operations centers in Houston where we control all our operations in Houston – that’s drilling, that’s fracking, the field operations, that’s methane tracking, methane emissions tracking as well from one central control center in Houston. Obviously our plan would be to bring in the whole Pioneer operations in time to have one central organization. What this gives you is it gives you all that competency, all that expertise, applies is to the whole of Midland Delaware Basins from one central control center.
Stephen Richardson: Thanks very much.
Operator: The next question is from Roger Read of Wells Fargo. Your line is open, please go ahead.
