Offshore Guyana, ExxonMobil (XOM) Advances $12.7 Billion For Whiptail

(CTN News) – ExxonMobil Corporation XOM, a multinational energy company headquartered in the United States, has announced its plans to proceed with a $12.7 billion deepwater oil project. off the coast of Guyana.

In this significant move, the company is developing its sixth deepwater oil field in the Stabroek block, demonstrating its commitment to exploiting the region’s rich oil reserves.

ExxonMobil has made a final investment decision on the project, dubbed Whiptail, after receiving all necessary government and regulatory approvals.

According to ExxonMobil, the Whiptail project will require an investment of $12.7 billion. It is anticipated that the project will produce 250,000 barrels of oil per day (bpd) by the end of 2027.

The development is expected to increase Guyana’s total daily crude capacity to 1.3 million barrels per day, a remarkable achievement only eight years after it began producing oil.

It is planned to establish up to ten drilling centers and 48 production and injection wells as part of the Whiptail project. In the southeastern portion of the Stabroek block, the project is expected to access the Whiptail, Pinktail, and Tilapia fields, with additional resources potentially available through feasibility studies.

Mr. Liam Mallon, president of ExxonMobil Upstream Company, emphasized the collaborative efforts that have contributed to the success of the Stabroek block development.

The CEO stressed that the company is committed to delivering results while adhering to environmental standards and cultivating partnerships with local stakeholders. Furthermore, Mallon underscored the importance of these projects for Guyana’s economic development, solidifying the country’s position as a major player in the global energy market.

There has already been substantial economic benefit to Guyana as a result of ExxonMobil’s investments. Since the beginning of production in 2019, more than $4.2 billion has been invested into the Guyana Natural Resource Fund.

Additionally, ExxonMobil is committed to empowering Guyanese communities and creating economic opportunities by employing 70% Guyanese nationals to support block operations in Stabroek.

According to ExxonMobil’s ambitious plans for the Stabroek block, the company plans to deploy six FPSOs by 2027, with the possibility of 10 FPSOs being deployed to fully exploit the estimated gross discoverable recoverable resources of over 11 billion barrels of oil equivalent.

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