ExxonMobil advances Whiptail development with $12.7bn investment in Guyana

ExxonMobil has announced a final investment decision on the Whiptail development project located offshore Guyana in the Stabroek block, marking a major advancement in the country’s oil sector. This decision, backed by necessary government and regulatory approvals, forecasts an increase in daily oil production capacity by approximately 250,000 barrels, aiming for full operation by the end of 2027. The Whiptail project, the sixth initiative in the Stabroek block, represents a substantial $12.7 billion investment in the region’s burgeoning economy.

Strategic Development and Environmental Considerations

Liam Mallon, President of ExxonMobil Upstream Company, highlighted the project’s strategic significance, stating, “Our sixth multi-billion-dollar project in Guyana will bring the country’s production capacity to approximately 1.3 million barrels per day.” Mallon emphasized the project’s fast pace, cost efficiency, and environmental performance, noting that the Stabroek block developments stand among the lowest emissions intensity assets in ExxonMobil’s upstream portfolio. This development is not only a testament to the strong collaborative efforts with the Guyanese government and local stakeholders but also a critical step towards providing reliable energy supplies globally.

ExxonMobil’s final investment decision on the Whiptail project promises to significantly boost Guyana’s oil production by 2027 with a $12.7 billion investment

Economic and Community Impact

The ongoing and upcoming projects in the Stabroek block, including Whiptail, are set to generate significant economic benefits for Guyana. Since the commencement of production in 2019, ExxonMobil has contributed over $4.2 billion to the Guyana Natural Resource Fund. Moreover, the project underlines ExxonMobil’s commitment to local development, with Mallon affirming the company’s dedication to investing in local communities and supporting sustainable development initiatives across the country.

Currently, 70% of the workforce supporting the Stabroek block operations comprises Guyanese nationals, totaling around 6,200 workers. The cumulative expenditure of ExxonMobil Guyana and its contractors with local suppliers since 2015 has exceeded $1.5 billion, underscoring a significant investment in the local economy.

Infrastructure and Partnerships

The Whiptail project plans to establish up to 10 drill centers featuring 48 production and injection wells. The Floating Production Storage and Offloading (FPSO) vessel for this project, named Jaguar, is already under construction. This adds to the three existing FPSOs in the region — Liza Destiny, Liza Unity, and Prosperity — which collectively produce over 600,000 barrels of oil per day. Additional FPSOs for the Yellowtail and Uaru projects are also underway, with production starts targeted for 2025 and 2026 respectively.

ExxonMobil affiliate ExxonMobil Guyana Limited operates the Stabroek block, holding a 45% interest. The remaining stakes are held by Hess Guyana Exploration Ltd. with 30%, and CNOOC Petroleum Guyana Limited with 25%.