ExxonMobil role in Guyana’s Oil Boom
Table of Contents
A New Energy Frontier: Guyana’s Offshore Oil Discovery
Guyana’s rise as one of the world’s fastest-growing economies began in 2015 when ExxonMobil made a major offshore oil discovery. The first drill at the Liza-1 well, located around 200 km offshore in the Stabroek Block, revealed vast reserves. Initially valued at about US $40 billion, current estimates suggest that over 11 billion barrels of oil are recoverable. This discovery set the stage for an economic transformation that few could have predicted.
Rapid Expansion: FPSO Deployments and Production Milestones
Following the discovery, ExxonMobil and its partners quickly moved to develop the oil fields.
- Liza Phase 1 marked Guyana’s entry into the oil-producing world in December 2019.
- Liza Phase 2 and Payara followed, with production reaching approximately 620,000 barrels per day by late 2023.
- In 2025, the Yellowtail FPSO (“One Guyana”) came online, boosting capacity beyond 900,000 barrels per day.
Plans for the Uaru project are expected to add around 250,000 barrels per day by 2026, followed by Whiptail in 2027 with another 250,000 barrels per day. By 2027, all six planned FPSOs are projected to raise Guyana’s production capacity to over 1.3 million barrels per day. Since operations began, more than 500 million barrels have been produced from the Stabroek Block, making Guyana the third-largest oil producer per capita in the world.
Creating Value: Local Involvement and Economic Impact
ExxonMobil’s operations have significantly impacted the local economy. Over 6,000 Guyanese are directly employed in the sector, making up nearly 70% of the workforce. Since 2015, the company and its contractors have spent more than US $1.5–2 billion with over 1,700 local suppliers. Additionally, approximately US $4.2 billion has been deposited into Guyana’s Natural Resource Fund, fueling national development projects.
Pushing Environmental Performance and Diversification
Guyana’s offshore oil production is notable for its efficiency and sustainability measures. ExxonMobil’s Floating Production Storage and Offloading (FPSO) units are recognized for their sustainable design and emit roughly 30% fewer greenhouse gases than the company’s average upstream projects.
A key diversification effort is the Gas-to-Energy Project, which in Phase 1 delivers around 50 million cubic feet of natural gas per day to power a 300 MW onshore plant and produce about 4,000 barrels per day of Natural Gas Liquids. Phase 2 aims to expand to 120 MMcf/d, doubling electricity output to 600 MW and increasing NGL production to nearly 10,000 barrels per day.
Other planned developments include Hammerhead, with a projected output of 180,000 barrels of oil per day and 95 MMcf/d of gas, and Longtail, Guyana’s first gas-led development targeting 1.2 billion cubic feet of gas per day.
The Big Picture: What It Means for Guyana
The oil boom has rapidly transformed Guyana from a modest economy into a major global energy player. Oil revenues are fueling infrastructure growth, social development programs, and economic diversification. However, challenges remain, including governance issues, environmental concerns, and the need to ensure fair long-term benefits for the Guyanese people.
Regionally, Guyana’s success is reshaping the Caribbean energy landscape, attracting major global investments and influencing oil strategies in neighboring countries. Strategic partnerships, such as Chevron’s acquisition of Hess’s stake in the Stabroek Block, further highlight Guyana’s rising importance in the global energy market.
