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‘Exxon’s speed will push daily production to 1.5M barrels a day by 2029’
— Bharrat hails ‘most exciting era in our history’
(Kaieteur News) – Minister of Natural Resources Vickram Bharrat says the Government has come to expect ExxonMobil Guyana Limited’s habit of delivering major offshore oil projects ahead of schedule.
Speaking at the launch of the fifth annual Guyana Energy Conference and Supply Chain Expo on Friday, Bharrat said investor interest in Guyana’s oil sector continues to surge, cementing the nation’s rapid rise as the world’s largest hydrocarbon producer per capita. Since first oil in December 2019, ExxonMobil has secured approval for seven developments in the Stabroek Block—Liza 1, Liza 2, Payara, Yellowtail, Uaru, Whiptail, and Hammerhead and has submitted its application for an eighth, Longtail.
Currently, four Floating Production Storage and Offloading (FPSO) vessels are producing oil with a daily production output of over 900,000 barrels.
Minister of Natural Resources Vickram Bharrat (left) and ExxonMobil Guyana Limited President Alistair Routledge at the event last Friday.
Minister Bharrat noted that the FPSO for the Uaru project, Errea Wittu is expected to be in Guyana waters late 2026, and set to start oil production by early 2027. “But with Exxon schedule, you never know. They’re always, not on time, but before schedule,” the minister stated.
Bharrat further noted that government has adjusted their expectations based on Exxon’s pattern of early delivery. “So, we have grown to accept that when Alistair Routledge (EMGL’s President) said early 2027 he meant late 2026, but we are working with his time frame,” he added.
“Then in 2027 we expect the arrival of the Jaguar FPSO (for Whiptail project) that will be our sixth FPSO, and taking production close to 1.3 million barrels per day, and then we have already signed the Hammerhead license and that FPSO is expected in Guyana sometime 2029,” the minister noted.
Bharrat encouraged investors to pay close attention to the scale of economic transformation underway, stating, “the future looks good for us as a country, for you as investors… this is the most exciting period in history of our country and all of us here, we have the front seat to witnessing this build out of the new modern Guyana that we want to see.”
The Hammerhead Petroleum Production Licence (PPL) was approved in September. Hammerhead is expected to deliver first oil in 2029, pushing national production capacity to roughly 1.5 million barrels per day in the second quarter of that year. In August 2024, the ONE GUYANA FPSO achieved first oil for the Yellowtail development, bringing Guyana’s installed capacity to 900,000 bpd and later reaching the full daily production capacity.
Dan Ammann, president of ExxonMobil Upstream Company had stated that Yellowtail’s ahead-of-schedule startup is a significant milestone for ExxonMobil and the people of Guyana. Exxon has boasted that in five years, it was able to start up four complex offshore mega-projects under budget and ahead of schedule, while simultaneously advancing plans for four additional projects by the end of the decade.
With the addition of Longtail, Exxon is targeting 1.7 million barrels per day by 2030 from eight producing platforms. The Stabroek Block which is estimated to hold 11.6 billion barrels of oil is operated by EMGL, who holds 45% interest. The other block partners Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest.
The agreement governing the Stabroek Block extends favorable terms to the oil companies. According to the agreement, Stabroek Block partners can recover 75% of oil produced to cover investment costs. The remaining 25% is considered profit and is split equally between Guyana and the consortium, giving each 12.5%. However, the consortium pays a 2% royalty from its share to Guyana. From Guyana’s 14.5% total take, the government must pay the oil companies’ taxes. The deal stipulates that the sum equivalent to the taxes owed by the companies must be paid by the Minister responsible for petroleum to the Commissioner General of the Guyana Revenue Authority (GRA).
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- Alistair Routledge, daily production, Exxon, FPSO, natural resources, oil production, Vickram Bharrat
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And that will mean, the OIL will last less time and Guyana will be stuck with
massive debt from the “borrowing of finance” for most every development.
Better start paying off, down, the larger of the amounts… government don’t
want to be caught with “their pants down”.