ExxonMobil is moving forward with the Whiptail development, projected to increase its production offshore Guyana by nearly 250,000 B/D by 2027.
This is according to an announcement made this month by ExxonMobil which said it received all government and regulatory approvals before making its final investment decision on its next major development in the Stabroek block located 125 miles off the Guyanese coast.
ExxonMobil said the $12.7-billion project will involve 10 drill centers along with 48 production and injection wells. A floating production storage and offloading (FPSO) vessel to be named Jaguar is under construction by SBM Offshore and will be used to develop the Whiptail project.
Upon delivery it will be the sixth FPSO operating offshore Guyana, joining the Liza Destiny, Liza Unity, and Prosperity which combine for more than 600,000 B/D. Additionally, two other FPSOs are under construction to develop the Yellowtail and Uaru fields, with anticipated start dates in 2025 and 2026, respectively.
At peak production the Whiptail project is expected to lift Guyana’s output capacity to about 1.3 million B/D.
Liam Mallon, president of ExxonMobil’s upstream unit, highlighted the decision, stating, “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 also noted that the project will result in a windfall of billions of dollars for the Guyanese economy. The company emphasized that since 2019, over $4.2 billion has been contributed to the government’s natural resource fund, and that it employs 6,200 Guyanese—representing 70% of the workforce on the Stabroek block.
ExxonMobil is the operator and holds a 45% stake in the Stabroek block, with Hess and the Chinese National Offshore Oil Corporation (CNOOC) owning 30% and 25%, respectively.
Meanwhile, Chevron’s acquisition of Hess continues, although it faces delays due to arbitration filings by both ExxonMobil and CNOOC which are challenging the rival supermajor’s right to join the joint venture in Guyana.
