ExxonMobil’s Liza find back in 2015 unlocked a treasure trove of oil and gas discoveries in Guyana’s Stabroek Block. Now, in 2024, the number stands at 45 discoveries and Exxon aims to take this even higher.
“I believe Guyana will go down as one of the most successful deepwater developments in the history of the industry,” said Darren Woods, Chief Executive Officer of Exxon Mobil Corporation. He was at the time speaking to investors during the company’s 2024 first-quarter earnings call.
Exxon points to major upcoming milestones in South America hotspot
Since oil production started in 2019, Liza 1, Liza 2, and Payara have accelerated production to over 600,000 barrels per day (b/d). And with a fourth project coming online next year – Yellowtail, Guyana’s production will rise even higher, making it the number one per capita oil producer in the world.
The low breakeven costs are especially significant. According to a report by the International Energy Forum (IEF) and S&P Commodity Insights, Guyana’s average breakeven price of US$36 per barrel of Brent crude is a standout figure in the global market, with projects like Liza 2 at US$25 per barrel and Payara at US$32 per barrel.
U.S. EIA: Guyana is now the third fastest growing non-OPEC oil producer in the world
These costs position Guyana’s oil production as highly competitive and profitable, even during market fluctuations, which is crucial for North American stakeholders watching global oil prices. Additionally, strategic investments in Guyana have been supported by agreements that provide substantial benefits to both the country and the oil companies.
Along with Yellowtail, Exxon also has the Uaru and Whiptail projects under construction.
Its 7th project – Hammerhead – is the latest under consideration by the Guyanese government. Hammerhead is expected to achieve first oil around 2029 and will be in production for approximately 20 years. By that time, it is likely to take total production capacity offshore Guyana to 1.5 million b/d.
Exxon holds a 45% stake in the Stabroek Block, with Hess owning 30% and CNOOC holding 25%.
