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Guyana greenlights ExxonMobil’s oil project

April 12, 2024

GEORGETOWN, Guyana, CMC – The Guyana government Friday said it has granted a petroleum production licence to the US oil and energy giant, ExxonMobil, the Stabroek Block operator for its sixth development offshore Guyana, Whiptail.

It said that this US$12.7 billion development will produce 250,000 barrels of oil daily, bringing daily production to 1.3 million by the end of 2027.

“Additionally, this development will include up to ten drill centres with 48 production and injection wells,” the Ministry of Natural Resources said in a statement.

It said the construction of Jaguar, the floating, production and offloading (FPSO) vessel identified for this development, remains in progress.

“This vessel joins the Liza Destiny, Liza Unity and Prosperity FPSOs, which combined, are currently producing over half a million barrels of oil daily. Construction is also in progress for the Yellowtail and Uaru developments. Production for these projects is slated to commence in 2025 and 2026, respectively.

“Notably, oil production from this sixth development will generate billions in revenue for Guyana, thereby supporting significant economic and social upliftment for the country and its citizens,” the ministry added.

Meanwhile, in a separate statement from its US office, ExxonMobil said it has made a final investment decision for the Whiptail development offshore Guyana, after receiving the required government and regulatory approvals.

It said Whiptail, the sixth project on the Stabroek block, is expected to add approximately 250,000 barrels of daily capacity by the end of 2027.

“Our sixth multi-billion-dollar project in Guyana will bring the country’s production capacity to approximately 1.3 million barrels per day,” said Liam Mallon, president of ExxonMobil Upstream Company.

“Our unrivaled success in developing the Guyana resource at industry-leading pace, cost and environmental performance is built on close collaboration with the government of Guyana, as well as our partners, suppliers, and contractors. The Stabroek block developments are among the lowest emissions intensity assets in ExxonMobil’s upstream portfolio and will provide the world with additional reliable energy supplies now and for years to come.”

ExxonMobil said the $12.7 billion Whiptail project will include up to 10 drill centres with 48 production and injection wells.

“We are committed to helping spread the benefits throughout the country by investing in local Guyanese communities and projects to support the country’s phased and sustainable development,” said Mallon.

ExxonMobil said that production from the six Stabroek block developments will generate tens of billions of dollars of revenue and significant economic development for Guyana.

It said since its first production in 2019, more than US$4.2 billion has been paid into the Guyana Natural Resource Fund.

It said there are currently 6,200 Guyanese working in support of Stabroek block operations—which is 70% of the workforce.

The cumulative spend of ExxonMobil Guyana and its contractors with Guyanese suppliers since 2015 surpassed US$1.5 billion at the end of 2023.

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