Reports suggest that Exxon Mobil is preparing to develop its sixth oil project off the coast of Guyana.
This is according to a Reuters report, which claims to have seen a recent Guyanese government filing that reveals Exxon Mobil’s plans with joint venture partners Hess and CNOOC. The new project is set to begin production in four years and will be called “Whiptail”. It is expected to add up to a further 263,000 barrels per day (bpd) of crude oil production to Exxon Mobil’s total for Guyana.
ExxonMobil, which makes the Mobil grease and metalworking products, has made around 30 discoveries as operator of the Stabroek block offshore of Guyana. The consortium already has one active project, with total production expected to reach 400,000 bpd by the end of the year.
Further projects are also in the pipeline, and the Government of Guyana this year approved Exxon’s plans for the Uaru field, which is thought to hold 800 million barrels in recoverable crude reserves. Once Whiptail is combined with the other projects in the pipeline, the consortium’s total crude oil production in Guyana could be as high as 1.2 million bpd by 2027.
While this would be an impressive achievement in itself, it is just the beginning for the relatively small South American country. The country’s government is keen to take advantage of its oil and gas resources before the demand for hydrocarbons begins to decline, so it is offering a further 14 blocks for exploration to companies beyond the Exxon-led consortium, with the target being to produce an average of 1.64 million bpd of crude oil by the next decade.
