Exxon Mobil Corp. is advancing its large-scale gas project in Guyana, which will now include the construction of fertilizer plants, according to Alistair Routledge, the head of Exxon in Guyana. The U.S. oil giant recently initiated the process of acquiring environmental permits for its eighth project in the country, marking a significant shift as this is the first project that will produce gas independent of oil production.
In addition to this, Exxon is planning to explore another well at its vast offshore block in Guyana. The announcement follows a series of upgrades that have enhanced the capacity of two of Exxon’s three floating production facilities, setting the stage for a highly active year in exploration and production in the region.
Exxon’s ongoing expansion is further bolstered by the recent acquisition of a floating production, storage, and offloading (FPSO) unit from Netherlands-based SBM Offshore. The $1.23 billion deal, finalized in 2023, secured the Jaguar FPSO, which will be used to process oil from offshore Guyana. With a production capacity of 250,000 barrels of oil per day and the ability to treat 540 million cubic feet of associated gas daily, the Jaguar FPSO will significantly impact the region’s energy infrastructure, including the reduction of electricity costs in Guyana. The new project will channel associated gas from Exxon’s Liza Phase 1 and 2 offshore projects via a pipeline to onshore processing facilities, which will transport up to 50 million standard cubic feet of natural gas per day.
Exxon’s success in Guyana continues to set new milestones. In November, the company announced reaching 500 million barrels of oil produced from its Stabroek offshore block—just five years after production began at the site. The first three projects—Liza Phase 1, Liza Phase 2, and Payara—are already producing over 650,000 barrels per day. The Exxon-led consortium, which includes Hess Corp. and China’s Cnooc, is on track to achieve a production goal of 1.3 million barrels per day by 2027, driven by six upcoming offshore projects.
In 2024, the consortium generated $6.33 billion in revenue from the Stabroek block, with Exxon earning $2.9 billion, Hess netting $1.88 billion, and Cnooc amassing $1.52 billion. Exxon holds a 45% stake in the Stabroek block, while Hess owns 30% and Cnooc holds 25%.