Oil & Gas

ExxonMobil announced on Wednesday that it has reached a major milestone, producing 500 million barrels of oil from the Stabroek block off the coast of Guyana, just five years after beginning production.

The Exxon-led consortium, which includes Hess Corp. and China's Cnooc, aims to reach a production target of 1.3 million barrels per day by the end of 2027, with six new offshore projects expected to come online. The first three projects—Liza Phase 1, Liza Phase 2, and Payara—are already producing over 650,000 barrels per day.

In 2023, the Stabroek block generated $6.33 billion in revenue for the consortium, with ExxonMobil earning $2.9 billion, Hess receiving $1.88 billion, and Cnooc securing $1.52 billion. ExxonMobil holds a 45% stake in the block, Hess owns 30%, and Cnooc has a 25% share.

ExxonMobil is also advancing its natural gas efforts in the country, with plans to start generating natural gas from its assets soon. The company has acquired a $1.23 billion floating production, storage, and offloading (FPSO) unit from SBM Offshore, which will be used to process oil and gas offshore Guyana.

ExxonMobil's Gas to Energy project, in partnership with the Guyanese government, is expected to launch by the end of 2024. This project will bring associated gas from Exxon’s offshore fields to onshore processing facilities via pipeline, reducing electricity costs for the country.

The pipeline is designed to transport up to 50 million cubic feet of natural gas per day. This initiative is part of Exxon’s broader commitment to sustainable energy solutions in Guyana, which is rapidly transforming its economy due to its newfound oil wealth.

Guyana’s economy has undergone a dramatic transformation since the discovery of oil. Once one of the poorest nations in South America, the country’s GDP per capita has grown at an astonishing average rate of 42.3% per year since 2020.

By 2023, it reached $20,360, up from $6,477 in 2019, and Guyana is now classified as an upper-middle-income nation. This growth is largely driven by the success of offshore oil projects, including those led by ExxonMobil, which have significantly boosted the country’s economic standing.