ExxonMobil Guyana Forges Ahead with Sixth Offshore Endeavor

• ExxonMobil has reached a definitive investment decision regarding the Whiptail development situated offshore Guyana, after securing requisite government and regulatory endorsements. The announcement was made on April 12, 2024, almost a week after Venezuela’s President Nicolás Maduro passed a law declaring the border region of Essequibo, which belongs to Guyana, a Venezuelan federal state. This announcement by Exxon indicates that the company is continuing to pursue its investment in Guyana’s oil and gas industry, despite the geopolitical risks posed by Venezuela’s recent actions.
• Whiptail, the sixth project within the Stabroek block is forecasted to augment daily capacity by approximately 250,000 barrels by 2027.
• According to Liam Mallon, President of ExxonMobil Upstream Company, Whiptail will elevate Guyana’s production capacity to approximately 1.3Mn barrels per day (bpd) in 2027 from  about 645,000 bpd in early 2024. He further underscored that through close collaboration with the Government of Guyana, partners, suppliers, and contractors, ExxonMobil saw unparalleled success in cultivating Guyana's resource reservoirs, achieved through industry-leading efficiency, cost-effectiveness, and environmental stewardship.
• Notably, the Stabroek block developments are among the least emissions-intensive assets within ExxonMobil's upstream portfolio. They are poised to supply global markets with additional dependable energy resources well into the future. The Whiptail endeavour, boasting a price tag of US$12.7Bn, is slated to encompass up to 10 drill centres, housing 48 production and injection wells.
• The production emanating from the six Stabroek block developments is anticipated to yield tens of billions of dollars in revenue and foster substantial economic growth in Guyana. Since production began in 2019, the Guyana Natural Resource Fund has received a contribution exceeding US$4.2Bn.
• The Floating Production Storage and Offloading (FPSO) vessel designated for the Whiptail project, to be named Jaguar, is presently undergoing construction. Concurrently, three FPSOs—Liza Destiny, Liza Unity, and Prosperity—are operational offshore Guyana. Collectively, they sustain the safe production of over 600,000 barrels bpd. Construction activities are underway for FPSOs earmarked for the Yellowtail and Uaru projects, with Yellowtail anticipated to commence production in 2025 and Uaru slated for 2026.

(Sources: ChemAnalyst & NCBCM Research)