Exxon Mobil Corp (XOM.N) on Monday decided to invest $10 billion in a fourth oil production project off the coast of Guyana, the largest in the South American country.
Guyana is one of Exxon’s top bets for future production growth, with as much as 1.2 million barrels per day of oil and gas (boed) expected to be produced by 2027.
Exxon and partners Hess Corp (HES.N) and CNOOC Ltd Consortium started production in Guyana in 2019 and are responsible for all output in the country. They have discovered more than 10 billion barrels of recoverable oil.
Exxon’s Yellowtail development in the Stabroek block is expected to produce about 250,000 barrels of oil per day starting in 2025. The $10 billion project is one of up to 10 that the companies plan to install in Guyana.
Exxon’s fourth project at Yellowtail will “provide the world with another reliable source of energy to meet future demand and ensure a secure energy transition,” said Liam Mallon, president of Exxon’s upstream company.
The final investment decision was made after receiving government and regulatory approvals on Friday.
Exxon named the offshore production unit for Yellowtail “One Guyana,” it said. The project will include six drill centers and up to 26 production and 25 injection wells, the company said.
The three companies produced 120,000 boed in Guyana in 2021. Exxon isthe leading operator with a 45% stake.Partners Hess and CNOOC keep 30% and 25% of the output, respectively.
Earlier this year, the group started a new production vessel that will bring total capacity in the country to more than 340,000 barrels per day.
(Reuters- Reporting by Arunima Kumar in Bengaluru; Editing by Shounak Dasgupta, Paul Simao and Mark Porter)