Exxon will go ahead with a $12.7-billion oil development off the coast of Guyana after the country’s government gave its final approval to the project.
The Uaru project is expected to boost the company’s production in Guyana by a quarter of a million barrels daily. Startup is scheduled for 2026. According to Reuters, this would be Exxon’s and Hess’s most expensive project.
The Uaru field is estimated to hold more than 800 million barrels of crude oil.
Exxon and its partner Hess Corp. have made some 30 discoveries offshore Guyana since they started exploring the Stabroek block. Production is climbing consistently, likely to hit 400,000 bpd by the end of this year. Guyana is a priority jurisdiction for Exxon, along with U.S. shale.
Exxon and Hess are currently the only oil producers in Guyana, but the country’s government has big plans. Guyana is tendering 14 more blocks this year as it seeks to speed up its transformation into a major oil producer while reducing Exxon’s dominance of its emerging oil industry.
Guyana’s government eyes oil production of some 1.64 million bpd by 2030 as it is eager to monetize its hydrocarbon resources before peak demand hits, as predicted by forecasters seeing a successful energy transition away from fossil fuels.
Yet Exxon also has big plans for Guyana that would keep it in a dominant position. By the end of 2027, the company plans to have six floating production vessels there, bringing its total production capacity to 1.2 million barrels daily.
Oil is not Guyana’s only bet. The South American nation also has plans to develop its untapped natural gas reserves. Per Vice President Jagdeo, the government had been approached by several companies with the request to be considered should Guyana decide to develop LNG export capacity.
By Irina Slav for Oilprice.com
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