ExxonMobil sets higher Guyana oil production target

FILE PHOTO: The logo of Exxon Mobil Corporation is shown on a monitor above the floor of the New York Stock Exchange in New York, December 30, 2015./File Photo

ExxonMobil has revised upward its 2025 crude oil production in Guyana on the back of its fourth deepwater project there. Under new estimates, Exxon expects to produce 800,000 bpd by 2025.

And Guyana has even more optimistic projections for its crude oil production at 1 million bpd by 2027.

Exxon’s fourth project, the Yellowtail project, will produce 250,000 bpd—the largest in Guyana, according to Exxon. Yellowtail will even produce more than Liza-1 and Liza-2, which lie just 19 miles to the northwest.

Exxon’s previous Guyana production estimates for 2026 was 750,000 bpd.

For Yellowtail, Exxon expects production to begin at the end of 2025.

Exxon announced just two weeks ago another new oil discovery called Uaru-2 in the Stabroek Block offshore Guyana. This added to Exxon’s 9 billion oil-equivalent barrels across more than a dozen discoveries in that block.

Exxon and Hess expect at least six projects online by 2027 and see the potential for up to 10 floating production storage and offloading vessels (FPSOs) to develop the current recoverable resources offshore Guyana.

Guyana is one of the top priorities in the U.S. supermajor’s strategy to focus on high-return and cash-generating projects that would allow it to grow its dividend through 2025.

The Yellowtail discovery was announced in April 2019. Yellowtail is ExxonMobil’s 13th oil discovery in the Stabroek Block, according to Exxon’s website. The Yellowtail- 1 well was drilled in a new reservoir, encountering approximately 292 feet (89 meters) of high-quality oil bearing sandstone reservoir and was drilled to a depth of 18,445 feet (5,622 meters) in 6,046 feet (1,843 meters) of water.

Exxon affiliate Esso Exploration and Production Guyana Limited operates the Stabroek projects and owns a 45% interest in the block.