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‘World-class and profitable!’ – Chevron touts Guyana’s Stabroek Block as global oil goldmine
…says six projects below $35 per barrel breakeven
(Kaieteur News) – American oil giant Chevron Corporation has hailed Guyana’s Stabroek Block as a “world-class asset”—boasting some of the highest cash margins and lowest breakeven costs in the global oil industry.
Speaking at Chevron’s Investor Day in New York on Wednesday, Vice Chairman Mark Nelson praised the block’s “exceptional growth potential and profitability,” noting that Guyana’s offshore oilfields are expected to drive meaningful production growth. Nelson noted that Guyana’s Stabroek Bock has industry leading resource and meaningful production growth expected into the next decade. “Its developments rank among the highest cash margin and lowest carbon intensity in the industry with six announced projects below $35 per barrel breakeven,” he added.
Chevron’s Vice Chairman, Mark Nelson
Chevron’s entry into the Stabroek Block which is estimated to hold 11.6 billion barrels of oil was secured with a successful US$53 billion acquisition of Hess Corporation earlier this year.
The operator of the block is rival American oil giant ExxonMobil Corporation that holds 45% interest in the block through its local subsidiary ExxonMobil Guyana. Hess Guyana holds 30%, and CNOOC Petroleum Guyana Limited holds the remaining 25%.
Currently, there are four developments producing oil from the Stabroek Block: Liza Phase 1, Liza Phase 2, Payara and Yellowtail. The fourth project, Yellowtail achieved first oil in August and on Wednesday Exxon announced that the Stabroek Block’s daily oil production has finally reached 900,000 barrels with the Yellowtail Floating Production Storage and Offloading (FPSO) vessel reaching its initial capacity of 250,000 barrels per day (bpd).
In addition to the four projects currently producing, Exxon has three others sanctioned Uaru, Whiptail, and Hammerhead.
The Uaru and Whiptail projects Guyana’s fifth and sixth developments are each expected to produce approximately 250,000 bpd, with start-up targeted for 2026 and 2027, respectively.
Notably, the Hammerhead project, the seventh development which received government approval back in September is expected to add around 150,000 bpd when it begins production in 2029.
Notably, the Stabroek Block co-ventures has committed more than US$60 billion to develop seven government-approved projects offshore Guyana.
Additionally, Exxon has filed an application for an eighth development, Longtail, which is currently undergoing regulatory review.
Speaking further on the progress in Guyana, Nelson stated, “Even with the recent Hammerhead FID [Final Investment Decision], they’re now seven FPSOs in production or under development. By 2030, eight FPSOs are expected to be online, enabling over 1.7 million barrels per day of gross capacity. We’re proud to continue the work Hess began in Guyana and remain committed to supporting the country and its people.”
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Sir. Ronald Sanders
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We continue to sew OUR country giving away our new found wealth with no though about the future of our nation. Unbelievable our skills of negotiating is very weak and pathetic as the oil companies leading us as cows to the slaughter. Unbelievable but true. No though about a sovereignty fund or wealth fund for the future generations, everything is being done in short term with lots of irregularities with the sitting government’s involvement . Where is the responsibility and accountability to our nation on the profitability and the savings for our future . It’s really disturbing and And at the same time frightening because of the different political situations we find ourselves at the moment. The most important right now is the renovation of all oil and gold contracts with better conditions for our nation.